Understanding Annual Leave Entitlements in the UAE (Article 29)

Paid vacation is an essential legal right safeguarding employee physical wellness and productivity across the Emirates. Under Article 29 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, every employee in the UAE private sector qualifies for statutory paid leave accrued progressively based on continuous tenure.

Whether you are planning an annual holiday back home or finalizing an end-of-service departure settlement, understanding your exact accrued days ensures you never leave money on the table. You can check all related tools on the UAE digital calculation hub to assess end of service gratuity, basic salary allocations, and overtime pay with complete peace of mind.

Statutory Accrual Rules (Article 29)

🌴 The Legal Annual Leave Tiers
  • Service Under 6 Months: No statutory annual leave entitlement during the probationary period.
  • Service Between 6 and 12 Months: 2 calendar days for every completed month of service (up to 12 days total in your first year).
  • Service Beyond 1 Full Year: 30 calendar days of paid leave per year (2.5 calendar days per completed month).
  • Encashment upon Termination: All unavailed accrued leave days must be compensated in cash as part of your final settlement voucher.
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Annual Leave Accrual Schedule by Completed Months

Service Duration Accrual Formula Total Days Accrued Cash Value (AED 9,000 Salary)
6 Months 6 mos × 2 days 12 Days AED 3,600
9 Months 9 mos × 2 days 18 Days AED 5,400
1 Year (12 Mos) Full annual entitlement 30 Days AED 9,000
2 Years (24 Mos) 2 yrs × 30 days 60 Days AED 18,000
3 Years (36 Mos) 3 yrs × 30 days 90 Days AED 27,000

Frequently Asked Questions About UAE Annual Leave

Under Article 29 of UAE Labour Law No. 33 of 2021, employees are entitled to 30 calendar days of paid annual leave per year after completing 1 full year of service. For service between 6 and 12 months, the entitlement is 2 days per month.
Yes. With the agreement of the employer, an employee may carry forward up to half (50%) of their unused annual leave days to the following year, or receive cash allowance in lieu of leave calculated on basic wage.
During annual leave, an employee receives their full regular wage (basic salary plus housing and transport allowances), payable prior to commencing leave as mandated by Article 29.
Under Federal Decree-Law No. 33 of 2021, annual leave is calculated in calendar days; however, if an official declared public holiday falls during your annual leave, it is generally treated as leave unless employment contract terms explicitly state otherwise.
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