UAE Labour Law Article 29 Compliant • Updated for 2026

Leave Encashment Calculator UAE

Calculate the estimated value of your unused annual leave in the UAE using your basic salary and eligible leave days.

Leave Encashment Inputs

Article 29 Statutory Accrual Base
Standard Article 29
AED
Days
Estimated Leave Encashment
AED5,000.00
Daily Rate: AED 333.33Leave Days: 15 Days

Calculation Breakdown

Basic Monthly SalaryAED 10,000
Daily Basic Wage RateAED 333.33
Eligible Unused Leave15 days
Total Encashment PayableAED 5,000.00
Step Formula:
10,000 ÷ 30 × 15 = AED 5,000.00

Rate this tool

Help us improve by leaving your feedback

4.9/ 5
Based on 1,420 ratings

UAE Leave Encashment Formula (Article 29)

Methodology

For standard statutory annual-leave compensation under UAE Labour Law:

Leave Encashment = Basic Monthly Wage ÷ 30 × Eligible Leave Days
Worked Example (Basic Salary: AED 8,000, Unused Leave: 12 Days):
Daily Basic Wage = AED 8,000 ÷ 30 = AED 266.67
Total Compensation = AED 266.67 × 12 = AED 3,200.00

Leave Encashment Reference Table

Basic SalaryUnused Leave DaysStatutory CalculationEstimated Payout
AED 3,00010 days3,000 ÷ 30 × 10AED 1,000.00
AED 5,00015 days5,000 ÷ 30 × 15AED 2,500.00
AED 7,00020 days7,000 ÷ 30 × 20AED 4,666.67
AED 10,00030 days10,000 ÷ 30 × 30AED 10,000.00
AED 15,00015 days15,000 ÷ 30 × 15AED 7,500.00
Frequently Asked Questions

Leave Encashment FAQ

Common questions regarding UAE leave pay calculations and Article 29 rules

How is leave encashment calculated in the UAE?

The standard calculation uses the applicable basic monthly wage and eligible unused leave days: Basic monthly wage ÷ 30 × eligible leave days.

Is leave encashment calculated on basic salary or total salary?

For compensation for accrued annual leave upon termination, UAE Labour Law (Article 29 of Federal Decree-Law No. 33 of 2021) provides for calculation according to the basic wage.

How much is 30 days of leave worth in the UAE?

If the applicable basic monthly wage is AED 6,000, 30 days would equal AED 6,000 under the standard 30-day calculation (AED 6,000 ÷ 30 × 30).

How much is 15 days of leave worth?

If the basic monthly wage is AED 10,000: 10,000 ÷ 30 × 15 = AED 5,000.

Can I calculate leave encashment using my total salary?

The standard termination calculation should not simply use your total salary package. The applicable basic wage is used unless your employment contract or company policy explicitly provides for gross salary encashment.

What if I have 20 unused leave days?

Enter your applicable basic monthly wage and 20 days into the calculator to estimate the amount. For instance, on a basic salary of AED 7,000, 20 days equals AED 4,666.67.

Does unused annual leave expire in the UAE?

Treatment of unused leave and carry-forward is governed by applicable UAE employment rules and employer agreements. The calculator does not determine whether a particular day remains legally claimable.

Is this UAE leave encashment calculator accurate?

It provides an estimate based on the inputs and stated calculation method. Your final entitlement can depend on your employment circumstances, contract terms, and official employer payroll records.

Calculate Your Full UAE Final Settlement

Combine your leave encashment with gratuity and unpaid wages in our comprehensive severance tool:

Copied to clipboard!