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Leave salary & encashment
calculator

Work out how many annual leave days an employee has accrued, and what an unused balance is worth in cash. Useful at exit, at year-end provisioning, or when an employee queries their balance.

⚠️ Important — please read before using this figure

This calculator is provided for general guidance and estimation only. It applies statutory minimum formulas and does not constitute legal, tax, financial, or accounting advice. Statutory rates, ceilings, thresholds, and formulas are amended periodically in every GCC market, and your contract, entity, jurisdiction, and individual circumstances all change the outcome. Always cross-check any figure independently against the current law and your signed employment contract, and obtain advice from a qualified legal or payroll professional before acting on, communicating, paying, or relying on any amount shown here. AmalOps accepts no liability for any loss, claim, or dispute arising from use of this tool or reliance on its output.

Your details
Enter basic wage, or the fuller figure if your policy pays leave on gross.
30 calendar days is the common UAE statutory minimum after one year.
Encashment value
Fill in the fields to calculate.
⚠️ Estimate only — cross-check before use. Statutory rates change and individual circumstances vary. This is not legal or financial advice. Verify against current law and the employment contract, and take professional advice before relying on, paying, or communicating this figure. AmalOps accepts no liability for reliance on this output.
How It Works

How leave salary
is calculated

Leave pay looks simple and generates more disputes than almost any other payroll element, because entitlement is calculated from rules while employees experience it as a promised balance.

Accrual

Annual leave accrues over the period worked. The calculator divides the annual entitlement across 365 days and multiplies by days of service in the period, then deducts leave already taken. In the UAE, employees completing one year of service are commonly entitled to 30 calendar days per year, with a reduced entitlement between six and twelve months of service.

The daily rate

Encashment value is the daily wage multiplied by unused days, where the daily wage is the applicable monthly salary divided by 30. The consequential question is which monthly salary: basic wage, or basic plus allowances. Statutory minimums generally reference basic wage, while many contracts and policies are more generous, and contractual terms above the minimum are enforceable.

Why this is a balance-sheet item

Unused leave is an obligation the employer will eventually settle, whether through leave being taken or encashed at exit. Organisations that do not carry it as a provision are understating cost, and a workforce of several hundred holding substantial balances represents a material unrecognised liability.

Carry-forward and unpaid periods

Two policy positions must be documented per entity: whether unused leave carries forward and for how long, and whether unpaid leave interrupts accrual. Both are common sources of disagreement at exit. Our GCC leave law guide compares statutory entitlements across the six markets.

Stop calculating this by hand

Leave balances that are
always right

AmalOps accrues leave per employee against your documented policy, carries the liability as a live provision, and shows employees the same balance you see.

See AmalOps HRMS
Common Questions

Frequently asked
questions

How is leave salary calculated in the UAE?+
Leave pay is generally the employee’s daily wage multiplied by the number of leave days, where the daily wage is the applicable monthly salary divided by 30. Whether that monthly salary is basic wage or a broader figure depends on your contract and policy, with statutory minimums referencing basic wage.
In the UAE, employees who complete one year of service are commonly entitled to 30 calendar days of annual leave per year, with a reduced entitlement for service between six and twelve months. Entitlements differ across the other GCC markets and contracts frequently provide more.
Commonly yes, particularly on termination, where an unused balance is settled in cash. Whether leave can be encashed while employment continues, and whether balances carry forward, depends on your policy and the applicable law, so the position should be documented.
It can. Whether an unpaid period pauses or interrupts accrual is a policy position that must be documented, and it also affects service length for end-of-service purposes. Extended unpaid periods are commonly excluded.
Yes. Unused leave is an obligation that will eventually be settled either by the employee taking it or by encashment at exit. Organisations that do not provision for it understate cost, and the gap grows with headcount and tenure.
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