How to Calculate Unused Leave Payment (Leave Encashment) in the Gulf
When your Gulf job ends, any annual leave you have earned but not used should be paid in your final settlement. This is often called leave encashment or leave salary. Here is how it is usually worked out.
The basic formula
Leave payment = daily wage × number of unused leave days, where daily wage is usually monthly wage ÷ 30.
Which wage is used?
- UAE: payment for unused leave is calculated on basic salary.
- Other GCC countries: the law or common practice may use the basic or the full wage; check your contract and payslip. Kuwait practice often uses a 26-day month for daily wage.
Examples
| Case | Calculation | Payment |
|---|---|---|
| UAE, basic AED 4,500, 12 days unused | 4,500 ÷ 30 × 12 | AED 1,800 |
| Saudi, wage SAR 6,000, 15 days unused | 6,000 ÷ 30 × 15 | SAR 3,000 |
| Qatar, basic QAR 3,000, 10 days unused | 3,000 ÷ 30 × 10 | QAR 1,000 |
| Kuwait, wage KWD 400, 7 days unused | 400 ÷ 26 × 7 | KWD 107.69 |
Counting your unused days
- Work out the leave you earned: see the annual leave rules by country.
- Subtract the leave you have taken.
- Add any leave carried forward from earlier years with the employer's agreement.
Tips
- Ask HR for your leave balance in writing before your last month.
- Check that the settlement shows leave pay separately from gratuity.
- Keep your leave approval emails as proof of days taken.
اردو خلاصہ
باقی چھٹیوں کی رقم = روزانہ تنخواہ × باقی دن۔ روزانہ تنخواہ عام طور پر ماہانہ تنخواہ ÷ 30 ہوتی ہے۔ یو اے ای میں یہ بیسک تنخواہ پر بنتی ہے۔ آخری مہینے سے پہلے HR سے اپنی چھٹیوں کا بیلنس تحریری طور پر لیں۔