Leave Salary Calculation In The UAE for Employers
.webp)
Leave Salary Calculation In The UAE for Employers
Leave salary calculation in the UAE is vital for employment, offering clarity for both employers and employees. For example, when an employee takes paid leave, accurate salary calculation helps ensure they receive the correct entitlement, minimising disputes and enabling them to focus on personal matters with peace of mind. This article provides employers with a clear overview of how leave salary is calculated in the UAE. We will also touch upon recruitment process In UAE.
Cercli’s global HR system can streamline leave salary calculations and broader HR operations for your organisation. Book a call to learn more about our services today.
Leave Salary Calculation In the UAE—Understanding MoHRE Guidelines
The UAE Ministry of Human Resources and Emiratisation (MoHRE) plays a pivotal role in safeguarding employee rights, especially leave entitlements. These provisions, set out in Federal Decree-Law No. 33 of 2021 and its Executive Regulations, establish a comprehensive framework for paid and unpaid leave across various employment scenarios in the UAE.
Weekly Rest Days
As outlined in their employment contract or company policy, private sector employees in the UAE are entitled to at least one paid rest day per week. The UAE Cabinet may enhance this entitlement per national employment strategies or sector-specific policies.
Annual Leave
Employees in the UAE are entitled to annual leave with full pay, structured as follows:
- 30 calendar days per year for employees who have completed one full year of service.
- Two calendar days per month for employees who have been employed for more than six months but less than one year.
- Pro-rated leave applies to any partial year worked, particularly if the employment relationship ends before the full entitlement is utilised.
- For part-time employees, annual leave is calculated proportionately to the hours worked.
Employees may take annual leave during their probation period. Should they not successfully complete probation, they remain entitled to compensation for any accrued but unused leave.
Annual leave must be taken within the same year it is accrued. Employers may determine the timing of leave based on operational requirements, in consultation with the employee.
A minimum of one month’s notice must be provided prior to the commencement of leave.
With employer approval, unused annual leave may be carried forward. In cases of termination, employees may be compensated with a cash allowance in lieu of untaken leave.
Public Holidays
Public holidays officially declared by the UAE government are considered paid days off. If a public holiday falls during an employee’s annual leave, it is generally included in the leave period, unless the employment contract or company policy specifies otherwise.
Unused Leave
Employers are not permitted to unreasonably delay an employee’s annual leave entitlement for more than two consecutive years, unless the employee consents to carry it forward or receive a cash equivalent. Employees who exit their role before fully utilising their accrued leave must be compensated for the remaining days, calculated on the basis of their basic salary.
These protections exemplify the UAE's outstanding commitment to fostering a balanced and respectful work environment, prioritising organisational needs and employee well-being. Dubai and the wider UAE are internationally acclaimed for their progressive, transparent and exemplary employment framework, guided by Mohre’s proactive leadership.
Related Reading
Leave Salary Calculation In the UAE For Employers
.jpg)
In the UAE, leave salary is calculated to ensure employees receive fair and transparent compensation during their annual leave. The payment is based solely on the employee’s basic pay, excluding allowances such as:
- Housing
- Transport
- Other benefits
How to Calculate Leave Salary
Leave salary is calculated using two simple steps:
1. Determine the Daily Wage
Daily Wage = Basic Monthly Salary ÷ 30
A standard divisor of 30 days is applied across all months, regardless of the actual number of calendar days in each month.
2. Calculate Leave Salary
Leave Salary = Daily Wage × Number of Leave Days Taken
Example calculation:
If an employee earns a basic salary of AED 10,000 per month and takes 20 days of annual leave, the calculation is as follows:
Daily Wage = AED 10,000 ÷ 30 = AED 333.33
Leave Salary = AED 333.33 × 20 = AED 6,666.60
This amount is paid in addition to the employee’s usual salary during the leave period, provided the leave is taken within the same year.
Leave Salary Upon Termination
Any unused annual leave must be paid out when employment is terminated, whether by the employer or the employee.
The calculation is as follows:
Unused Leave Salary = (Basic Monthly Salary ÷ 30) × Number of Accrued Leave Days
This guarantees that employees are fairly compensated for any leave days they have accrued but not taken before their contract concludes.
Leave Salary for Part-Time Employees
For part-time or hourly-based employees, annual leave entitlement is prorated based on the actual hours worked:
Pro-Rated Leave = (Actual Working Hours ÷ Total Annual Working Hours) × Legal Leave Days
For instance, if a part-time employee works half the full-time hours a year, they would be entitled to half the standard annual leave, i.e., 15 days instead of 30, and leave salary would be paid accordingly, based on their daily wage.
When Is Leave Salary Paid?
- Before the commencement of leave, as per the labour law
- Upon resignation, for any unused accrued leave
Optimising Workforce Management Across the MENA Region with Cercli
Cercli streamlines payroll management for MENA businesses by automating salary calculations, prorated payments, and leave-based adjustments according to each employee’s contract and local labor laws. It supports all hire types-full-time, part-time, contractors, and EOR-and handles multi-currency payments across 160+ countries with seamless bank integrations. With Cercli, payroll becomes effortless, accurate, and fully compliant, letting you focus on growing your business.
Experience the only HR platform truly designed for how you do business in the Middle East. Book a demo to speak with our team about our global HR system today.
Various Types Of Paid Leave In The UAE
Maternity Leave: What Female Employees in the UAE Should Know
In the UAE, female employees are entitled to 60 days of maternity leave, comprising 45 days on full pay and 15 days on half pay. Should the employee experience postnatal complications or illness, she may apply for a further 45 days of unpaid leave, provided a medical certificate is submitted.
Paternity/Parental Leave: What New Parents Should Know About Leave in the UAE
Both mothers and fathers are entitled to five working days of paid parental leave, to be taken within six months of the child’s birth. This forward-thinking policy demonstrates the UAE's exceptional dedication to fostering family-oriented workplaces and work-life balance.
Bereavement Leave (or Compassionate Leave): How Much Time Off Employees Get After the Death of a Loved One
Employees may take paid compassionate leave on the death of a family member:
- Five days for the death of a spouse
- Three days for the death of a parent, child, sibling, or grandparent
Leave must begin on the date of death and is subject to providing appropriate proof.
Study Leave: How Employees Can Get Time Off to Pursue Their Education
Employees enrolled in a recognised educational institution in the UAE are entitled to ten working days of paid study leave per year.
This leave supports exam preparation or attendance, encouraging lifelong learning and professional growth.
National Service Leave: What You Should Know About Military Leave in the UAE
UAE Nationals called to military or national service are entitled to paid leave under the applicable legislation. Employers must honour these national obligations without affecting the employee’s job security or salary.
Sick Leave: How Much Time Off Employees Get for Medical Issues
Upon completion of the probation period, employees in the UAE are entitled to up-to 90 days of sick leave per year, structured as follows:
- First 15 days: full pay
- Next 30 days: half pay
- Final 45 days: unpaid
A valid medical certificate must support sick leave.
Ensuring Compliance with UAE Leave Law: A Strategic Priority for HR Teams
The UAE's leave framework represents one of the region's most balanced and employee-centred approaches to labour law.. These provisions safeguard employee welfare and promote productivity, loyalty, and inclusivity in a diverse and dynamic workforce. HR departments must remain vigilant in implementing these provisions accurately and with empathy.
Related Reading
- How To Calculate Salary Per Month In UAE
- How To Register WPS In UAE
- Payroll Process In UAE
- How To Hire Employees In Dubai
MoHRE’s Role in Employee Benefits
.jpg)
The Ministry of Human Resources and Emiratisation (MoHRE) plays a central role in protecting employee rights across the UAE’s private sector. It ensures employers adhere to the country’s Labour Law, particularly regarding employee benefits such as paid leave, salary disbursements, and end-of-service entitlements. One of MoHRE’s key responsibilities is overseeing compliance with benefit-related provisions in Federal Decree-Law No. 33 of 2021.
This includes monitoring how employers handle:
- Leaves like:
- Annual
- Maternity
- Paternity leave
- Public holiday compensation
- Overtime payments
Employers must also calculate and pay end-of-service benefits accurately.
Book a Demo to Speak with Our Team about Our Global HR System
With Cercli, you can streamline all your workforce management needs into one powerful system. Say goodbye to the time-consuming task of calculating employee benefits, such as leave entitlements.
Cercli’s comprehensive solution efficiently handles:
- Multi-currency payroll
- Leave management
- Onboarding
- Compliance documentation
This is tailored to the unique requirements of the MENA region, including the dynamic and progressive business landscape in Dubai and the UAE.
Leave Salary Calculation in UAE: Why Is It Important?
Accurate leave salary calculation is essential for both employers and employees. For employees, it guarantees their rights are respected when taking leave, helping to reduce stress and allowing them to focus on personal matters. AThe accurate calculating of leave salary ensures that employees are paid on time when taking leave.
As one of the world's most forward-thinking and innovative business hubs, Dubai, alongside the UAE, has established a robust framework for employee benefits, creating a balanced and efficient work environment. With Cercli, MENA businesses can streamline this entire process.
Experience the only HR platform truly designed for how you do business in the Middle East. Book a demo to speak with our team about our global HR system today.
Related Reading
- How To Calculate Salary Per Day In UAE
- Unpaid Leave UAE
- HR Duties And Responsibilities In UAE
- How To Calculate Public Holiday Pay In UAE
