Calculates the end-of-service gratuity (EOSB) for private sector employees in the UAE mainland and most free zones, based on Federal Decree-Law No. 33 of 2021.
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Annual Leave Entitlement in the UAE
Under UAE Federal Decree-Law No. 33 of 2021, every employee is entitled to paid annual leave. The standard entitlement is 30 calendar days for each full year of service. For employees who have completed between six months and one year of service, the leave is calculated at a rate of two days for each month worked. Employees with less than six months of service are not entitled to annual leave. This right is a fundamental part of the employment relationship, designed to ensure employee well-being and work-life balance.
How Annual Leave is Calculated
The calculation depends on your total length of service and your employer's definition of the "leave year." Some companies use the calendar year (January to December), while others use an anniversary year starting from your employment date. The law mandates the accrual rate, but the leave year is often defined by company policy or your employment contract.
For a full year of service, you accrue 30 days. For partial years, the accrual is pro-rated. If you have worked more than one year, your total accrued leave is the sum of full years (30 days each) plus the pro-rated days for the incomplete year in progress. The pro-rata for a partial year after the first is typically calculated as (Months worked in current year) * (30/12).
The cash value of unused leave, payable upon termination, is based on your last basic salary. The daily rate is calculated by dividing your monthly basic salary by 30, which is the standard number of days used for salary proration in the UAE labor market. Allowances, housing, transportation, and commissions are not included in this calculation.
A Detailed Example Calculation
Let's follow the case of Ahmed, who started work on January 15, 2025. As of October 20, 2026, he wants to know his leave balance. His basic salary is AED 12,000, and he has already taken 10 days of leave. His company uses the calendar year for leave.
- Step 1: Total Service. From Jan 15, 2025 to Oct 20, 2026, Ahmed has completed 1 full year (2025) and has worked 9 months in the current calendar year (January to September 2026; October is incomplete). The calculator shows 21 total months of service.
- Step 2: Accrued Leave. For the first full year (2025), he earns 30 days. For the 9 months in 2026, he accrues 9 * (30/12) = 22.5 days. Total accrued = 30 + 22.5 = 52.5 days.
- Step 3: Leave Balance. 52.5 days accrued - 10 days taken = 42.5 days remaining. The calculator rounds the final balance down to 42 whole days for the purpose of taking leave, as fractions are typically paid out but not taken.
- Step 4: Cash Value. Daily salary rate: AED 12,000 / 30 = AED 400. Cash value of the 42-day balance: 42 * AED 400 = AED 16,800. This is the amount Ahmed would receive if his employment ended today.
Frequent Scenarios and Special Cases
New Employees (Under 6 Months): No leave entitlement accrues. This probationary period is clearly defined by law.
Employees Between 6 and 12 Months: Entitled strictly to 2 days per month worked. An employee with 8 months of service has exactly 16 days of accrued leave, not a pro-rata of the 30-day annual entitlement.
Upon Termination: All unused, accrued leave must be paid out in cash based on the last basic salary. This is often called "cash in lieu of leave" and is a mandatory settlement component.
Carry-Over and Encashment During Employment: The law allows leave to be carried over to the next year with the employer's agreement. Some companies may also allow you to encash a portion of your leave while still employed, but this is subject to internal policy and mutual consent.
Next Steps: Formally Requesting Your Leave
Once you know your balance, you should formally request time off using an Annual Leave Request Letter. This professional document serves as an official record of your request. It should be submitted to your supervisor well in advance, specifying the exact start and end dates of your requested leave. It's also good practice to outline a brief handover plan to ensure your responsibilities are covered during your absence. Using a formal letter helps prevent misunderstandings and ensures your leave is properly recorded by the HR department.
Important Limitations and Considerations
This calculator is designed for the UAE mainland under Federal Law No. 33 of 2021. It does not apply to free zones like the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM), which operate under independent employment regulations. Furthermore, the calculation assumes a standard 30-day month for salary proration; while this is the overwhelmingly common practice, a very small number of employers might use a different divisor (like 26 for working days) as per specific contract terms. Always refer to your signed employment contract for the definitive rules governing your leave.