Unused annual leave payout when you leave your job
Short answer: in all three countries, annual leave you have earned but not taken is paid in cash when your job ends, whether you resign or the employer ends the contract. The payout is your daily wage multiplied by the unused days.
How much leave you earn
| Country | Annual leave | After long service |
|---|---|---|
| Qatar | At least 3 weeks a year | 4 weeks a year from 5 years of service |
| UAE | 30 days a year after 1 year (2 days a month between 6 and 12 months) | Stays 30 days |
| Saudi Arabia | At least 21 days a year | 30 days a year after 5 consecutive years |
Part years count in proportion, so if you leave four months into a year, you have earned a third of that year's leave.
How the payout is calculated
- Daily rate = monthly salary ÷ 30
- Payout = daily rate × unused leave days
Which monthly salary is used depends on the country:
- UAE: the law is explicit that leave pay on leaving is based on the basic wage (Article 29 of Federal Decree-Law No. 33 of 2021).
- Qatar: leave pay is generally based on the basic wage. Some contracts use the total salary, so check yours.
- Saudi Arabia: Article 111 entitles you to your wage for the unused days. Employers usually use the actual wage, including fixed allowances such as housing.
Examples: 12 unused days
| Country | Monthly salary used | Daily rate | Payout |
|---|---|---|---|
| Qatar | 9,000 QAR basic | 300.00 | 3,600 QAR |
| UAE | 10,000 AED basic | 333.33 | 4,000 AED |
| Saudi Arabia | 12,000 SAR actual wage | 400.00 | 4,800 SAR |
Common questions
Can I use my leave during the notice period instead? Only if your employer agrees. Otherwise you work the notice period and the unused days are paid out.
What if I took more leave than I earned? Your employer can deduct the extra days from your final settlement.
Can my employer refuse to pay unused leave? Not for leave you have actually earned. Carry-forward rules in your contract can limit how many days roll over from earlier years, so check them before you resign.
Is it paid together with gratuity? Yes. Leave pay is a separate item in the same final settlement as your gratuity and last salary.