What are the updated leave policies for employees in the UAE in 2026?
As of 2026, leave policies for employees in the UAE are governed by Federal Decree-Law No. 33 of 2021 and its executive regulations, covering annual leave, sick leave, maternity leave, paternity leave, study leave, bereavement leave, and more. Employers must ensure compliance with minimum statutory entitlements, proper documentation, and payroll accuracy to avoid penalties and disputes.
This blog provides a complete overview of leave policies for employees in the UAE, including updated leave entitlements, numeric breakdowns, HR compliance tips, and how solutions like Max ERP simplify leave management for businesses.
Leave Policies for Employees in UAE 2026 – Complete Guide
Overview of Leave Policies for Employees in UAE
Leave policies for employees in the UAE are designed to protect employee rights while maintaining business continuity. The UAE Labour Law applies to private sector employees and outlines minimum leave entitlements. Employers may offer additional benefits but cannot provide less than the legal minimum.
In 2026, compliance, digital tracking, and automated payroll integration have become critical, especially with the UAE’s focus on smart governance and digital HR systems.
Types of Leave Under UAE Labour Law (2026)
Below is a structured overview of statutory leave policies for employees in the UAE:
| Leave Type | Duration (Minimum) | Paid/Unpaid | Eligibility Criteria |
|---|---|---|---|
| Annual Leave | 30 days/year | Paid | After 1 year of service |
| Annual Leave (6–12 months) | 2 days/month | Paid | After 6 months |
| Sick Leave | 90 days/year | 15 full pay, 30 half pay, 45 unpaid | After probation |
| Maternity Leave | 60 days | 45 full pay + 15 half pay | Female employees |
| Paternity Leave | 5 working days | Paid | Within 6 months of childbirth |
| Bereavement Leave | 3–5 days | Paid | Depending on relation |
| Study Leave | 10 working days | Paid | 2 years of service |
| Hajj Leave | 30 days | Unpaid | Once during employment |
Annual Leave Policy in UAE 2026
How much annual leave are employees entitled to in the UAE?
Employees are entitled to 30 calendar days of paid annual leave after completing one year of service.
Key points:
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Leave accrues monthly.
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Employers must pay leave salary before leave begins.
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Unused leave can be carried forward (subject to company policy).
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Employees are entitled to leave encashment upon termination.
For HR teams, accurate leave accrual tracking is essential to avoid disputes and financial miscalculations.
Sick Leave Rules in UAE
Employees can take up to 90 days of sick leave per year after probation. The breakdown is:
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First 15 days: Full pay
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Next 30 days: Half pay
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Remaining 45 days: Unpaid
Medical certificates are mandatory for approval. Proper documentation ensures compliance with leave policies for employees under UAE regulations.
Maternity and Paternity Leave in UAE 2026
Maternity Leave
Female employees are entitled to 60 days:
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45 days full pay
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15 days half pay
If the employee gives birth to a child with special needs, additional leave may apply.
Paternity Leave
Fathers receive 5 working days of paid leave, usable within 6 months of childbirth.
These policies reflect the UAE’s commitment to work-life balance and family welfare.
Public Holidays in UAE
Public holidays are announced annually by the UAE government and include occasions such as:
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Eid Al Fitr
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Eid Al Adha
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UAE National Day
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Islamic New Year
Employees working on public holidays must receive:
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A substitute day off, or
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Additional pay as per labor law
Employers must integrate public holiday calendars into HR systems to avoid payroll errors.
Leave Salary Calculation in UAE
Leave salary is calculated based on:
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Basic salary
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Allowances (if contractually included)
Example calculation:
| Component | Amount (AED) |
|---|---|
| Basic Salary | 6,000 |
| Housing Allowance | 3,000 |
| Transport Allowance | 1,000 |
| Total Monthly Salary | 10,000 |
Daily leave pay = 10,000 ÷ 30 = AED 333.33 per day
Accurate payroll integration is crucial for businesses managing large teams.
How Max ERP Simplifies Leave Management in UAE
Managing leave policies for employees manually increases compliance risks. Max ERP offers:
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Automated leave accrual tracking
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Real-time leave balance dashboards
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Integrated payroll processing
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Leave approval workflows
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Compliance-ready reporting
For HR managers in Dubai, Abu Dhabi, and across the UAE, Max ERP ensures labor law compliance while improving employee experience.
Best Practices for Employers in 2026
To stay compliant with leave policies for employees in UAE:
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Maintain a written leave policy aligned with UAE Labour Law.
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Digitize leave tracking systems.
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Ensure transparent leave approval processes.
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Train HR teams on updated labor regulations.
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Conduct annual leave audits.
Digital HR tools reduce disputes and ensure regulatory compliance.
Conclusion
Leave policies for employees in UAE 2026 are structured to balance employee welfare and business productivity. From annual leave and sick leave to maternity and bereavement leave, employers must follow statutory guidelines while maintaining accurate payroll records.
Companies using automated HR systems like Max ERP can streamline leave management, improve compliance, and enhance workforce satisfaction.
Staying updated with labor laws not only prevents penalties but also strengthens employer branding in the competitive UAE job market.
FAQs – Leave Policies for Employees in UAE 2026
1. How many annual leave days are employees entitled to in UAE?
Employees are entitled to 30 calendar days of paid annual leave after completing one year of service.
2. Is sick leave paid in the UAE?
Yes. Employees receive 15 days full pay, 30 days half pay, and 45 days unpaid sick leave annually after probation.
3. How long is maternity leave in UAE in 2026?
Maternity leave is 60 days: 45 days full pay and 15 days half pay.
4. Can employees carry forward unused leave in UAE?
Yes, subject to employer policy and agreement. Unused leave may also be compensated upon termination.
5. Is paternity leave mandatory in UAE?
Yes. Fathers are entitled to 5 working days of paid leave within 6 months of childbirth.
