Leave Salary Calculation In UAE

Leave Salary Calculation In UAE: Complete Guide 2024

Working in the private and public sectors makes knowing every rule and regulation introduced by the government is mandatory. Similarly, the leave salary calculation in UAE must be known so that you can ask your employer rightly about the deserving salary sum.

With the right guidance, you can care freely utilize your pre-determined leaves without going bankrupt. This well-structured article contains every single information that you might need to know.

Understanding Leave Entitlements in UAE

Leave entitlement in the UAE is a win-win for both employees and employers. Employees deserve a break from the tiring routine of their jobs. Work-life balance, family care, and financial security play an integral part as well. Not only has this approach increased the status of productivity. Decreased chances of workers taking off, employee retention, and leading towards a prosperous workplace environment.

Importance of Understanding Leave Salary Calculations in UAE

Leave Salary Calculations in UAE

Understanding leave pay computations in the United Arab Emirates is essential for companies and employees alike. This is the reason why:

For Employees: Understanding the methodology gives you the ability to determine your rights in the event of a termination or leave. This guarantees that you be paid fairly by the law and your service duration.

For Employers: Being aware of the computations helps ensure that you abide by UAE labour laws. This keeps disagreements at bay and guarantees that workers receive the proper compensation for their circumstances—whether they are on leave or are fired. Transparency promotes trust and a productive workplace.

Types of Leave in the UAE

Many types of leaves in UAE can be accessed according to the needs and requirements of an employee so that he/she can conveniently juggle her professional as well as personal life.

Annual Leave

The workers in the private sector in the United Arab Emirates started to get paid after the completion of a certain period which is called annual leave. Here is how it is further elaborated.

  • You will earn two days of leave every month after six months.
  • Following a year: You are eligible for a total of 30 days of yearly leave.

Sick Leave

After completing their probation period, private sector workers in the UAE are entitled to 15 days of paid sick leave in UAE, followed by 30 days of paid leave, and a maximum of 45 additional unpaid days (or 90 days annually) in total.

Maternity Leave

Female employees in the private sector in the United Arab Emirates are entitled to 60 days of paid maternity leave in UAE in which 45 days are fully paid and the remaining 15 days are half compensated. This gives them time to heal and take care of their new child.

Paternity Leave

For newlywed fathers, paternity leave in the UAE private sector is significantly shorter than maternity leave. They are entitled to five days of paid paternity leave to help with the infant’s first care and to support their spouse during this time of adjustment.

Bereavement Leave

To assist private sector workers in their grieving process, the UAE provides bereavement leave. Here’s a little explanation:

  • Payable leave of five days in the event of a spouse’s passing.
  • For the loss of a parent, child, sibling, grandparent, or grandchild, three days of paid leave are granted.

Public Holidays

The public holidays allocated to the employees in UAE are paid off. This means they will receive the pay for that day. The weekends typically include (Friday and Saturday) along with official holidays throughout the year. Along with this, the Islamic New Year, Eid Al Fitr, Eid Al Adha, and UAE National Day are also included.

 How to Calculate Leave Salary in UAE Under Labour Law

The following is how the UAE’s labour law calculates leave salary:

Leave Salary Calculation Formula:

Salary for leaves of absence = (Basic salary + allowances) / 30 x number of leave days
Base pay: This is the amount you are paid each month, set and unaffected by allowances or deductions.
Allowances: This might include any regular allowances you receive as part of your pay package, such as housing and transportation allowances.
Thirty is the number of days that make up a normal month.
The number of days you are taking a leave of absence is shown below.

Leave Salary Calculation In UAE In Case Of Termination

The length of employment and the person who started the separation determine how much leave pay you would receive in the UAE upon termination:

  • Resignation: You will still be paid for your leave, but only up to your basic pay (without any allowances). To calculate this, just take your basic income plus any allowances, divide it by thirty days, and multiply the result by the number of leave days.
  • Layoff by Employer:
    Less than a year: No pay is given throughout the leave.
    If you work for more than a year but less than five years, you will be compensated for twenty-one days’ worth of your base pay.
    If you are above five years old, you are entitled to a 30-day leave of absence depending on your base pay.

Leave Salary Calculation In UAE In Case Of Resignation

Leave salary calculation in UAE in case of resignation depends on your service time and who initiated the ending:

  • You resign: Standard leave salary calculation applies (basic salary, not including allowances).
  • Employer fires you:
    • Less than 1 year: No leave salary.
    • 1+ years but less than 5 years: 21 days’ basic salary.
    • 5+ years: 30 days’ basic salary.

Tips about leave salary formula for employers in UAE

Recognize the Two Cases: Recognize the dissimilar computations between resignation and termination. While dismissed workers (after one year) get compensation based on service duration (21 or 30 days’ basic salary), resigning employees receive leave pay based on basic salary.

Keep Correct Records: Maintain a record of basic pay and leave balances for employees to guarantee precise computations during leave or termination.

Think About Resignation-Only Allowances: Don’t forget to deduct allowances from the leave wage computation for departing employees. Only the base salary is used in the calculation.
See Labour Law and Contracts: For any updates or special needs, always consult the particular employment contracts and keep up with the most recent version of the UAE Labour Law.

Services Provided By RAAD Recruitment:

Wrapping up:

In essence, the laws and regulations imposed by the government may vary in the future or you might see alterations in the standards. This is why, stay in contact with Raad Recruitment to get timely updates about the rights of employees, working in the public as well private sectors.


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