30 days off as leave salary is granted annually following an employment year in the labour law UAE, vide Federal Law o. 33/2021. The labour law of the UAE is amended by amending Federal Law No. 8/1980 and Federal Laws Nos. 24/1981, 15/1985, and 12/1986.
The labour law UAE deals with provisions including calculating leave salaries, which are important for both employers and employees.
To calculate the leave salary in the UAE, it’s important to include all the key components, including the base salary, allowances, and any worked days during the leave period. Below is a detailed breakdown using the example of Ms. Z from ABC Company in Dubai.
1. Base Salary: This is the fixed monthly salary that an employee receives for their normal work. In Ms. Z’s case, it is AED 10,000.
2. Housing Allowance: This is an allowance provided by the employer to cover accommodation costs. Ms. Z receives AED 2,000 as a housing allowance.
3. Annual Leave Entitlement: In the UAE, employees are entitled to a certain number of leave days per year. Ms. Z is entitled to 30 days of annual leave.
4. Regular Monthly Salary: This includes both the base salary and housing allowance.
In Ms. Z’s case:
Regular Monthly Salary = Base Salary + Housing Allowance = 10,000 + 2,000 = 12,000 AED
5. Daily Salary: The daily salary is calculated by dividing the regular monthly salary by 30 (since leave pay is based on a 30-day month in the UAE):
Daily Salary = Regular Monthly Salary / 30 = 12,000 / 30 = 400 AED/day
This is the salary Ms. Z receives for each day of leave.
6. Days Worked During Annual Leave: If Ms. Z works during her annual leave, she will be compensated for those days. She worked 10 days during her leave period.
7. Additional Allowance for Worked Days: Ms. Z will receive an additional amount for the days she worked during her annual leave. This is calculated by multiplying the number of worked days by her daily salary:
Additional Allowance = Days Worked During Annual Leave * Daily Salary = 10 * 400 = 4,000 AED
8. Total Compensation During Annual Leave: The total compensation includes her regular salary (for the leave period) plus any additional allowance for the days worked during the leave:
Total Compensation = (Regular Monthly Salary * (Annual Leave Entitlement / 30)) + Additional Allowance
Total Compensation = (12,000 * (30 / 30)) + 4,000 = 12,000 + 4,000 = 16,000 AED
| Component | Amount (AED) |
| Base Salary | 10,000 |
| Housing Allowance | 2,000 |
| Annual Leave Entitlement | 30 days |
| Regular Monthly Salary | 12,000 |
| Days Worked During Annual Leave | 10 days |
| Daily Salary During Leave | 400 |
| Additional Allowance for Worked Days | 4,000 |
| Total Compensation During Annual Leave | 16,000 |
This breakdown explains how Ms. Z’s leave salary was calculated, considering both her regular salary and the additional allowance for the days she worked during her leave period.
Also read: Salary Deduction in UAE
Each employee is entitled to his base salary and, if any, a housing allowance for the days he takes yearly leave. The employer will pay an employee his regular salary plus an allowance for the days he worked, which will be calculated by taking into account his base pay when the employee’s work interests require him to work during all or a portion of his annual leave and if those days of leave are not carried over to the next year.
Verify the reputation of your employer before signing any employment contracts.
The following must be taken as annual leave for each year of service rendered by an employee:
Leave salary calculations in the UAE are far more crucial for employees and employers, as many factors are involved in them.
There are different types of leave in the UAE as per the specific situation of a worker, as stated below:
| Type of Leave | Description |
| Sabbatical Leave | Leave for national service, mandatory for boys, lasting 11 months to 3 years. |
| Study Leave | Leave for exams at accredited institutions after 2 years of employment, up to 10 days annually. |
| Leave with Compassion | 3-5 days off for grieving the death of close relatives. |
| Leave for Umrah and Hajj | 30 days unpaid leave for Hajj once during employment. |
| Maternity Leave | 60 days maternity leave; full pay for 45 days, half pay for 15 days, additional leave for complications. |
| Breastfeeding | Extra breaks (1 or 2 daily) for breastfeeding until 6 months after childbirth. |
| Parental Leave | 5 days fully paid parental leave from the 6th month of the child’s birth. |
Article 32 of the UAE labour law permits national workers to take sabbatical leave to perform national service. This service is optional for girls but mandatory for boys, lasting from 11 months to three years. To obtain this leave, workers must verify with the appropriate authorities.
Employees from any sector can take study leave for their personal development. To be entitled to this leave, a minimum of two years of complete employment is required. Workers are eligible to appear in exams at UAE-accredited educational institutions for ten working days annually.
Under Article 32 of the Labour Law, on the demise of close relatives, compassion leave is allowed under UAE Labour Law by considering the effects on the emotional and physical health of individuals who are close to the deceased; therefore, employees are allowed to take time off for cremation or burial and grieve. On the death of a grandparent, sibling, child, or spouse, 3 and 5 days off are allowed, respectively.
The law grants 30 days of unpaid leave once in the whole employment period for Hajj, as the pilgrimage is one of Islam’s five pillars, and every Muslim must do it at least once in their lives. According to Islamic authorities, Hajj (the pilgrimage to Makkah) is the most important expedition and a suitable excuse to take time off from work in the UAE.
Births, like funerals, are paradigm-shifting events that impact a parent’s mental and physical health. It’s especially noticeable in women who suffer from many health issues, like hormonal imbalances and depression. This is why the UAE employment regulations include considerable maternity leave:
Women with newborn babies are entitled to extra breaks (1 and 2 daily) for breastfeeding until six months after childbirth.
The UAE Labour Law introduced a progressive step by enacting parental leave of 5 days, fully paid, effective from the 6th month of the child’s birth, giving it a leadership role for the UAE in the region.
The following official holidays, which will be observed with full pay, are entitled to an employee:
Official Holidays in the UAE for 2024
No. Legally required holidays and other days off due to illness should be included in the computation of annual leave and treated as part of it.
When taking annual leave, employees are entitled to their base pay as well as, if applicable, their housing allowance during those days.
The employer may split the yearly leave into two portions if needed. He is also in charge of deciding when the leave starts. However, if the employee’s work circumstances force him to work during all or part of his annual leave and that leave is not carried over to the next year, his employer will reimburse him for the day’s work in addition to his base pay.
No worker shall ever be required to work during his yearly leave more than twice in two years. Stated differently, the employer may only withhold payment of an employee’s annual leave wages for a maximum of one time every two years.
The employee will receive full compensation in addition to the salary for the leave days he is eligible to take under the terms of this Act before beginning his yearly leave.
Employees are entitled to pay for time missed if their employment is terminated or if they quit after the required notification period. Any annual leave that is not used by the worker will be reimbursed. His pay at the time the leave was due will be used to calculate his payment.
Before taking his annual leave, the employee will receive payment in full in addition to his salary for the leave days that he is legally entitled to.
Workers have two days to notify their employers of any illnesses or injuries that keep them from working. During the probationary period, no sick leaves are allowed. On completion of three months of continuous service after the expiration of the probation period, the following benefits will be awarded to the employee:
However, the employee is not entitled to reimbursement for his sick leave if his misconduct directly caused his illness.
The worker may leave the company while on sick leave and before the 45-day legal notice period has elapsed if a government physician approves the reason for the resignation. In this instance, the employer must give the resigned worker all of his earned income until the conclusion of the aforementioned 45-day period.
Termination of employment during the sickness of the employee, while he is on annual leave, is not allowed. If a termination notice is served during such it will be considered null, and void. However, if the worker has used up all of his sick leave and is unable to report back to work, the employer may end the worker’s employment agreement. The employee has a legal right to receive his entire gratuity and end-of-service benefits in certain situations.
It is mandatory to verify the sincerity of your employer before signing any employment contracts. Moreover, when the worker’s leave ends, he won’t be compensated for the days he missed work. The employee’s right to be fired by the employer will not be affected if they fail to report back to work within seven days of the scheduled return date.