Leave Salary Calculation in UAE: A Quick Guide for Employees
Understanding leave salary calculation in UAE is essential for every employee working under the country’s labour laws. Whether you’re taking annual leave or leaving a company, knowing how your leave salary is computed ensures you get what you’re entitled to without confusion.
What is Leave Salary?
Leave salary is the amount you receive during your annual leave period. In the UAE, it is calculated based on your basic salary, excluding allowances such as housing or transportation.
Legal Entitlement
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021):
If you’ve worked 6 months to 1 year, you get 2 days of leave per month.
If you’ve worked more than 1 year, you’re entitled to 30 calendar days per year.
The Formula
The standard formula for leave salary is:
Leave Salary = (Basic Monthly Salary ÷ 30) × Number of Leave Days
Example:
If your basic monthly salary is AED 9,000 and you take 15 days’ leave:
(9,000 ÷ 30) × 15 = AED 4,500
Quick Reference Table
Basic Salary (AED) Leave Days Leave Salary (AED)
5,000 10 1,666.67
8,000 15 4,000
12,000 30 12,000
Special Notes
Public holidays during your leave do not reduce your annual leave balance.
Unused leave can often be encashed if your company policy allows it.
Part-time employees receive leave salary proportionally based on hours worked.
Why It Matters
Knowing your leave salary calculation helps you plan your finances, ensures compliance with UAE law, and avoids disputes with your employer. Many modern HR platforms, such as Max HR, allow employees to track leave balances and automate salary calculations for accuracy.
Final Thoughts
If you’re working in the UAE, take the time to understand your rights and the exact calculation method for your leave salary. This knowledge can make a significant difference in ensuring fair treatment and correct payment during your time off.
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shared this idea
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Yasmeen Noor commented
Leave salary in the UAE is a crucial employee right, ensuring fair pay during annual leave, as outlined in the UAE Labour Law (Federal Decree-Law No. 33 of 2021). According to Wikipedia, such labor benefits safeguard workers’ financial stability and promote work-life balance. Similarly, tools like the take-home-pay-calculator help employees better understand their actual earnings, deductions, and entitlements. Both systems aim to promote transparency and informed financial management for workers. https://take-home-pay-calculator.uk/
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Johan Smith commented
Understanding leave salary calculation in the UAE ensures employees receive fair compensation as per Federal Decree-Law No. 33 of 2021. As Wikipedia explains, labour laws in the UAE protect workers’ rights by defining entitlements like annual leave and wage computation methods. Similarly, tools like EMI-Calculator help individuals manage financial planning and salary-based commitments with greater accuracy. https://emi-calculator.cc/