Is unused annual leave paid out in the UAE?
Yes. Article 29(9) of Federal Decree-Law No. 33 of 2021 entitles a worker who leaves before using accrued leave to a wage for those days, whatever their number, and for leave earned in the last part-year in proportion to time worked. The payment is calculated on the basic wage.
How the payout is worked out
Count the leave earned and not taken, including the final part-year, and multiply by a day's basic wage. SupaJack Construct values each day at basic salary ÷ 30 in a final settlement, and pays it with the gratuity and any unpaid salary.
What to check
- Leave carried forward with the employer's approval still counts.
- Allowances are not part of the leave payout base.
- The payout is part of the final settlement, due within 14 days of the contract ending.
Related tools and guides
See the labour law guide, the gratuity calculator, the overtime calculator, the annual leave calculator, the final settlement calculator and the meaning of basic salary.
Worked example
A worker on AED 7,500 basic salary leaves with 40.5 days of leave earned and not taken, including the final part-year. Each day is worth 7,500 ÷ 30 = AED 250, so the payout is 40.5 × 250 = AED 10,125.00, paid with the rest of the final settlement within 14 days.
Questions people ask
Is leave paid on basic or gross salary?
On the basic wage.
Is there a cap on days paid out?
The law says the wage is due regardless of the leave duration.
When must it be paid?
With the final settlement, within 14 days of the contract ending.