UAE Leave Encashment Calculator 2026
Free UAE leave encashment calculator. Calculate annual leave payout when resigning, transferring jobs. Unused leave compensation per UAE Labour Law. Includes basic salary, per diem, housing allowance breakdown.
By Team GlobalCalqulate · About our editorial standards
Frequently Asked Questions
Clear answers to common questions to help you use this calculator confidently.
How is leave encashment calculated in the UAE?
Tap to view the answer
How is leave encashment calculated in the UAE?
Tap to view the answer
Leave encashment = unused leave days × daily wage, where daily wage is basic monthly salary ÷ 30. For example, AED 10,000 basic salary with 10 unused days gives a daily wage of AED 333.33 and an encashment of about AED 3,333.
Do allowances count toward leave encashment?
Tap to view the answer
Do allowances count toward leave encashment?
Tap to view the answer
No. Like gratuity, leave encashment is calculated on basic salary only — housing, transport and other allowances are excluded unless your specific contract says otherwise, which is not the statutory default.
What is the UAE's statutory annual leave entitlement?
Tap to view the answer
What is the UAE's statutory annual leave entitlement?
Tap to view the answer
An employee with 1 or more years of service is entitled to 30 calendar days of paid annual leave per year under Federal Decree-Law No. 33 of 2021 (Article 29). Employees with 6-12 months of service accrue 2 calendar days per month; there is no statutory entitlement below 6 months.
Can I get cash instead of taking leave while still employed?
Tap to view the answer
Can I get cash instead of taking leave while still employed?
Tap to view the answer
No. Cash in lieu of annual leave is prohibited while the employment relationship continues (Article 29). Leave encashment is only lawful as part of your final settlement when you resign, are terminated, or transfer employers.
How does leave encashment relate to gratuity?
Tap to view the answer
How does leave encashment relate to gratuity?
Tap to view the answer
They are separate payments. Leave encashment compensates unused annual leave; gratuity (EOSB) compensates years of service. Both are typically paid together as part of your final settlement — use the Gratuity Calculator alongside this one to estimate the full payout.
Need more help? Contact support or email globalcalqulate@gmail.com
We typically reply within 24–48 hours.