UAE Leave Encashment Calculator
Calculate the cash value of your unused annual leave under Article 29 of UAE Federal Decree-Law No. 33 of 2021. Instant and accurate.
Basic salary only — excludes housing, transport, and other allowances
Number of accrued leave days you haven't used
How It Works
Three steps to calculate your leave encashment
Enter Details
Input your basic salary, employment dates, and number of unused leave days.
Calculate
We divide your salary by 30 to get the daily rate, then multiply by your unused days.
View Amount
See the exact cash value of your unused leave with a full breakdown.
Leave Encashment Rules
Key rules under Article 29 of Federal Decree-Law No. 33 of 2021
What you get paid
- All accrued unused annual leave
- Calculated at basic salary rate
- Payment within 14 days of termination
- Applies to resignation and termination
- Pro-rated for partial years
Calculation basis
- Basic salary ÷ 30 = daily rate
- Daily rate × unused days = encashment
- 30 days/year (1+ year service)
- 2 days/month (6 months – 1 year)
- Excludes all allowances
Your rights
- Mandatory payment by law (Article 29)
- Cannot be waived by contract
- File complaint with MOHRE if unpaid
- No tax deductions in UAE
- Applies to all private sector employees
This calculator provides estimates for informational purposes only and does not constitute legal advice. Consult a qualified professional or contact MOHRE for official guidance.
Frequently Asked Questions
How is leave encashment calculated in the UAE?
Leave encashment is calculated as: (Monthly Basic Salary ÷ 30) × Number of Unused Leave Days. Only your basic salary is used — allowances for housing, transport, and other benefits are excluded.
When am I entitled to leave encashment?
Under Article 29 of Federal Decree-Law No. 33 of 2021, your employer must pay out all unused annual leave upon termination of employment, whether you resign or are terminated. This payment must be made within 14 days of your last working day.
Is leave encashment based on basic salary or total salary?
Leave encashment is calculated on your basic salary only. All allowances — housing, transport, phone, education, and bonuses — are excluded from the calculation.
Can I request leave encashment while still employed?
The law does not mandate employers to pay for unused leave while you are still employed. Leave encashment is primarily a termination benefit. However, some employers may offer cash-out options as part of their internal policies.
How many leave days can I encash?
You can encash all accrued unused annual leave days. Employees with 1+ year of service accrue 30 days per year, while those with less than 1 year (but more than 6 months) accrue 2 days per month.
Is leave encashment taxable in the UAE?
No. The UAE does not impose personal income tax, so your leave encashment payment is received in full without any tax deductions.
What if my employer refuses to pay leave encashment?
If your employer refuses to pay your leave encashment, you can file a complaint with MOHRE (Ministry of Human Resources and Emiratisation). The payment is a legal obligation under UAE labour law.
Does leave encashment include public holidays?
No. Public holidays are separate from your annual leave entitlement. Only unused annual leave days are included in the encashment calculation.
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