UAE employees are entitled to 30 calendar days annual leave after one year (2 days/month in year one). Sick leave: 90 days per year (first 15 full pay, next 30 half, last 45 unpaid). Maternity: 60 days (45 full + 15 half). UAE has 14 public holidays per year. Ramadan working hours are reduced by 2 hours per day.
Annual leave entitlement
Under UAE Labour Law 2021: employees who have completed one year of continuous service are entitled to 30 calendar days of paid annual leave per year. In the first year of employment, leave accrues at 2 calendar days per month — an employee who leaves after 9 months has accrued 18 days.
Annual leave is paid at the employee’s basic salary rate (not total package). Housing and transport allowances are not included in the daily rate for leave pay purposes.
Unused annual leave can be carried forward by agreement. At the end of the employment relationship, all accrued and unused annual leave must be paid out in cash at the basic salary daily rate — regardless of whether the employee resigned, was terminated, or the contract expired. Failing to pay out leave balances is a MOHRE violation.
Sick leave — the 90-day three-tier system
The three-tier sick leave bank resets each year. But sick days accumulate — an employee who takes 10 days in Q1 and 8 days in Q3 has used 18 days of their 90-day annual entitlement. A medical certificate from a government-licensed healthcare facility is required to validate sick leave — a certificate from an unlicensed clinic may be rejected.
| Sick leave period | Pay entitlement | Conditions |
|---|---|---|
| First 15 days | Full basic salary | Medical certificate required from day 1 in most cases |
| Next 30 days (days 16–45) | Half basic salary | Continuous or cumulative in a year |
| Final 45 days (days 46–90) | No pay | Employee may be terminated after 90 days if unable to return |
| Beyond 90 days | Termination possible | Employer may terminate; gratuity is still owed |
UAE public holidays 2026
- New Year’s Day — 1 January
- Isra’a Mi’raj — approx April 2026 (varies by moon sighting)
- Arafat Day / Eid Al Adha Eve — approx June 2026
- Eid Al Adha — 3 days (approx June 2026)
- Islamic New Year (Hijri New Year) — approx July 2026
- Prophet’s Birthday — approx September 2026
- Commemoration Day — 1 December
- National Day — 2–3 December (2 days)
Islamic public holidays (Eid Al Fitr, Eid Al Adha, Hijri New Year, Prophet’s Birthday, Isra’a Mi’raj) are confirmed by the UAE government based on moon sighting, typically 1–2 days before the holiday. Employers must monitor official announcements from the Federal Authority for Government Human Resources. Eid Al Fitr (end of Ramadan) is typically 3 days but not listed above as it falls mid-year.
Ramadan working hours
During the holy month of Ramadan, all employees in the UAE — Muslim and non-Muslim — have their daily working hours reduced by 2 hours. This is a statutory reduction, not a benefit to be negotiated. A standard 8-hour workday becomes 6 hours during Ramadan.
For employees on shift work or non-standard hours, the 2-hour reduction applies proportionately. Employees required to work additional hours during Ramadan are entitled to overtime pay at the standard rate.
Is your team's leave properly tracked and compliant?
We track annual leave, sick leave, and public holiday compliance as part of our UAE payroll service — with monthly reports and year-end cash-out calculations.
Frequently asked questions
How many annual leave days are UAE employees entitled to?+
30 calendar days per year after completing one year of continuous service. In the first year, leave accrues at 2 days per month. All unused leave must be paid out in cash on termination.
How does UAE sick leave work?+
90 days per year in three tiers: first 15 days at full pay, next 30 days at half pay, final 45 days at no pay. The 90 days reset annually. A medical certificate from a licensed facility is required.
How many public holidays are there in UAE?+
14 official public holidays per year. Some Islamic holidays shift by 1 day each year based on moon sighting. Employees required to work on a public holiday are entitled to a substitute day off or an additional day’s pay.
What are Ramadan working hours in UAE?+
All employees — Muslim and non-Muslim — have working hours reduced by 2 hours per day during Ramadan. This is a legal requirement, not employer discretion. A standard 8-hour day becomes 6 hours.
Can an employer refuse annual leave in UAE?+
Employers can schedule when annual leave is taken but cannot permanently deny it. If the employer postpones leave for operational reasons, they must schedule it within the next 6 months. Employees can also take leave with 30 days’ notice even without employer agreement if previously postponed.
Can unused annual leave be cashed out in UAE?+
Yes. At termination, all accrued unused annual leave is paid out at the basic salary daily rate. During employment, cash-out of leave is possible by agreement but not mandatory — employees can always choose to take leave instead.