How to calculate leave salary in UAE

How to calculate leave salary in UAE

However, making your workers take unpaid leave as an obligation is crisis management for the bosses which is I believe illegal with respect to labor laws in the UAE. How you make your bosses follow the rules is another matter of course.

There is no unpaid leave as such.

There are annual leaves (paid), emergency leaves (unpaid), sick leaves (paid if medical certificate provided). Some countries have paid casual leaves but not in the UAE. So anything outside of it is unpaid and there is no calculation for it.

Some employers are sending the employees on long unpaid leaves even up to 6 months which has no legal value. Employees can complain to authorities but the employer can state that he doesn’t have enough means to pay.

So it may end up at the termination of an employee. So some people accept long unpaid leaves instead of being terminated.

Does unpaid leave mean the leave which you have not utilized? You will be paid your leave which you have not availed (In lieu of leave) as:

Some companies pay full salaries and will be calculated for 2.5 days per month. As per the labor rules of UAE, the employer must pay 2.5 days per month and it will be calculated upon his basic salary + House Rent Allowance.


How to calculate leave salary in UAE

The daily working hours shall be regulated so that the worker does not work more than five consecutive hours without intervals for rest , meals and prayer , whose total period shall not be less than one hour . Such intervals shall not be included in the working hours.

Gross Salary X 12/365= per day salary. Per day Salary/8=Per hour salary. Overtime amount is =Number of overtime hours X Per hour salary X 1.25.

As stated several times in this website, there is no minimum wage law in the UAE and salary is a negotiated price between you and your prospective employer. … Dubai employers do not give 13th– month cheques or annual increases as is the case in countries where minimum wage laws exist.

Please note that as per UAE labor laws pertaining to leave, the leave of the employee should not be carried forward for more than two years.

This means you can accumulate your leave for two years only. More than two years’ leave won’t be considered and won’t be paid either.

If a UAE national has no high school certificate, his or her salary should be no less than Dh3,000 per month. High school graduates must earn a minimum of Dh4,000 per month and UAE nationals with a college certificate or more must earn a minimum of Dh5,000 per month.

How to calculate leave salary in UAE in 2023

Annual vacations are a hot topic that we listen to regularly. Many have questions about their payment rights.

The labor law in the country violates the provisions of annual vacations and the rights of employees in articles 74 to 81 of Federal Law 8 of 1980.

For each year of service, an employee is entitled to annual leave according to the duration of the service.

Employees have the right to be paid at least two days each month if their employment period is more than six months but less than one year.

If the period of employment is more than one year, the employee is entitled to 30 days a year.

This is a minimum requirement and may include holidays and weekends that are within that period.

An employee in 2020, is entitled to an official UAE holiday with the full wage for the following occasions:

  1. New Year: (1 January 2021)
  2. Eid Al Fitr: (29 Ramadan-3 Shawwal)
  3. Arafat Day: (9 Dhu al Hijjah)
  4. Eid Al Adha: (10-12 Dhu al Hijjah)
  5. Hijri New Year: (23 August)
  6. Commemoration Day: (1 December)
  7. National Day: (2-3 December)

Is the employee entitled to payment instead of leave if his services cease?

Employees are entitled to pay their salary by license if the employment has ended or if they have stopped working after the notice period prescribed by law.

The employee will be entitled to receive salaries for annual vacations he has not taken.

This payment will be calculated based on the wages received at the time the license expires.

At what time should the annual leave salary be paid?

Before taking their annual leave, employees will be paid their full salary, plus pay for vacation days in accordance with the provisions of this law.

When do the holidays begin and for how long?

The employer has the right to determine the beginning of the annual vacation and, when necessary, to divide the vacation into two classes.

The employer may also prohibit the employee from receiving part or all of the annual leave according to work requirements.

However, in this case, if annual vacations are not taken for the following year, the employer will have to pay the employee his salary in addition to the vacation allowance for the day he worked, which is equal to his base salary.

In addition, the employer can only defer annual vacations once in two consecutive years and pay the employee an annual vacation salary at the same time.

Therefore, no employee will be required to work during annual leave more than once for two consecutive years.

Are government holidays excluded from the calculation of annual vacations?

No, the calculation of the annual holiday period will include official holidays specified by law or contract, or sick holidays, that are within the same period of the annual holiday.

How do you write a letter requesting unpaid leave?

Be very short, sweet, and to the point. Your bosses are very busy people who don’t have time to read long letters. So make it something like:

Dear Boss,

I will be unable to work from This Date to That Date because of These Condensed Circumstances (e.g., my novel was accepted for publication and I need to go to Phoenix to sign the contract). I request unpaid leave during these dates.


Your Name.

Be sure to give them this notice several weeks ahead of time, if possible, or just ASAP. And don’t go all out on the details of why you can’t come into work.

Put it in a sentence, or half a sentence, but no more than forty words. You can probably do it in ten if you put your mind to it.


There are several employment laws, but are all of them followed? It is not uncommon to see laws being flouted by many employers on a regular basis. Employee rights including salary, gratuity, leave entitlements, overtime, working conditions, experience certificates are being denied…

Most employers are heavy investors and influential and know that they can get away with it. If an employee decides to fight for his/her basic rights in legal ways, then get ready to spend all your money and time. The process is time-consuming, slow, outdated, unreliable, unfavorable, and costly.

If you mean payment of leave salary it will be paid on (BASIC + DA )/30 * No of Days leave available. But Leave without pay is equal to absent and hence the full salary is deducted on prorata basis(i.e Gross salary for the month).

The outcome in most scenarios will be in favor of the employer.

How to calculate leave salary in UAE
How to calculate leave salary in UAE

How to calculate leave salary in UAE

Please note that the leave salary is calculated on the basis of basic salary plus HRA although, in practice, full salary is dispersed. The calculation is based on the last salary drawn by the employee. This is as per Articles 75 and 78 of UAE labour law.

For every year of service, an employee is entitled to an annual leave based on length of service. Employees are entitled to a minimum of two days paid leave for every month, if their period of emplyment is more than six months but less than a year.

The general formulas to calculate overtime rate for normal days is (Salary/30 days/8 hours) * 1.25 and for weekend (Salary/30 days/8 hours)*1.5. You should further multiple number of OT hours to the respective formula to get OT Amount for normal days and Fridays to add in to Gross Salary for each employee.

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How to calculate leave salary in UAE

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