UAE Leave Encashment Example: Cashing Out 15 Unused Days

October 23, 2026

A straightforward worked example: AED 8,500 monthly basic salary, 15 days of unused annual leave at exit.

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The Calculation

Daily basic wage: 8,500 ÷ 30 = AED 283.33.

  • Leave encashment: 15 × 283.33 = AED 4,250

Frequently Asked Questions

What's the leave encashment for 15 days at AED 8,500 basic salary?

AED 4,250 (15 days × AED 283.33 daily wage).

How is the daily wage found in this example?

AED 8,500 monthly basic salary divided by 30 = AED 283.33 per day.

Does this example account for a notice shortfall or other deductions?

No — this is the leave encashment component only, calculated in isolation from the rest of a final settlement.

Would 30 unused days simply double this figure?

Yes — the formula is linear, so 30 days at the same basic salary would be AED 8,500.