How is Leave salary calculated in UAE?
Each worker is entitled to their basic wage and the housing allowance, if applicable, for their days of annual leave.
Where the employer required the employee to work during all or part of their annual leave, and those leave days were not carried forward to the following year, the employer must pay the employee their normal wage plus an allowance in lieu of leave for the days worked, calculated on the basis of basic wage.
For every year of service, an employee is entitled to an annual leave of not less than the following:Two days leave for every month if his service is more than six months and less than a year. 30 days annually if his service exceeds one year. At the end of the service the employee is entitled to an annual leave for the fraction of the last year he spent in service.
Which official holidays are the employee entitled to ?
An employee is entitled to an official holiday with full wage for the following occasions:
- Hijri New Year’s Day one day
- Gregorian New Year’s Day one day
- Eid Al Fitr (end of Ramadan) two days
- Eid Al Ada and Waqfa three days
- Prophet Mohammed’s Birthday one day
- Isra and Al Mi’raj one day
- National Day one day
Are official holidays excluded from Leave salary calculation in UAE?
No. Official holidays, agreed holidays, or sick days that fall within an annual leave period are counted as part of that leave, not added on top of it.
What would be payable to the employee during his annual leave?
Each worker shall be entitled to his basic wage and the housing allowance, if applicable, in respect of his days of annual leave.
Who determines when the leave starts and for how long?
The employer has the right to determine the beginning of the annual leave, and when necessary, he has the right to divide the leave into two sections.If however, work circumstances require keeping the employee during whole or part of his annual leave and the leave has not been carried over for the following year, then the employer shall pay him his wage in addition to a leave allowance for the day he worked equal to his basic wage.
In all cases, no employee shall be required to work during his annual leave more than once during two consecutive years. In other words, the employer may only defer the annual leave once in two consecutive years and at the same time pay the employee the annual leave wages.
At which point should annual leave wages be paid?
Before taking his annual leave, the employee shall be paid his full wage, plus the wage of his leave days he deserves according to the provision of this law.
Is the employee entitled to payment in lieu of leave if his services are terminated?
The employee is entitled to payment of his wages for his leave if his employment is terminated, or he left his work after the period of notice determined by law. The employee will be entitled to receive wages for the annual leave that he has not taken. Payment will be calculated on the basis of the wages he received at the time when the leave was due.The employer may fix the date of commencement of annual leave and, if necessary, divide such leave into not more than two periods.
How is Sick leave salary calculated in UAE?
The employee must report to the employer any injuries or illness preventing him from working, within a maximum period of two days.The employee will not be entitled for any sick leave during the probation period.
After a period of three months continuous service following the probation period, the employee is entitled to:
- Full wage for the first 15 days.
- Half wage for the next 30 days.
- Any following period will be without wage.
However, if the employee’s illness is directly caused by his misconduct, he is not entitled to any wage during the sick leave.
Can the employee resign from employment during the sick leave?
The employee may resign from employment during the sick leave and before the completion of 45 days specified by law, provided the cause of resignation was approved by a government physician. In this situation, the employer must pay the employee who resigned, all the wages of which he is entitled for until the end of the 45 days referred to above.
Can the employer terminate the employee from service during his sick or annual leave?
The employer may not terminate the employee from service during his sick leave or during his annual leave. During this period any notice for termination will be considered null and void.
However, the employer is entitled to terminate the employment contract if the employee has exhausted his full sick leave and is not fit to come back to work. In such a case the employee will be entitled to his full gratuity and end of service entitlement according to this law.
Further, the employee will not be entitled to wages for the days that he has not reported to work after the end of his leave. This will not prejudice the rights of the employer to terminate the employees contract if he fails to report back to work within 7 consecutive days from the date on which he was due back.
How is leave salary calculated in maternity leave entitlements?
A working woman is entitled to 60 days of maternity leave under Federal Decree-Law No. 33 of 2021: 45 days at full pay followed by 15 days at half pay. This leave covers the period before and after delivery, provided she has served continuously for not less than one year. If she has served less than one year, the full 60-day entitlement still applies but the pay structure may vary — confirm with your employer or MoHRE..
Under the old Federal Law No. 8 of 1980 (now repealed), maternity leave was 45 days. Under the current Federal Decree-Law No. 33 of 2021, effective February 2022, the entitlement is 60 days as described above.
At the end of the maternity leave, a working woman has a right to extend her maternity leave for a maximum of 100 days without pay. This unpaid leave can be continuous or interrupted if the interruption is caused by illness which prevents her from coming to work. The illness must be confirmed by a certified government physician licensed by the competent health authority.
Maternity leave in either of the above cases shall not be deducted from any other leave for which the woman employee is entitled.
During the 18th months following the delivery, the working woman, who fosters her child has the right to have two daily intervals which do not exceed half an hour each for the purpose of nursing her child. Those two additional intervals shall be considered part of the working hours and no deduction in wages shall be made.
Frequently Asked Questions
What is the minimum annual leave entitlement for employees in UAE?
Two days per month if service is between six months and one year, and 30 days annually once service exceeds one year, paid at basic wage plus housing allowance where applicable.
How is sick leave salary calculated after the probation period in UAE?
After three months of continuous service following probation, an employee receives full wage for the first 15 days of sick leave, half wage for the next 30 days, and no wage beyond that.
Can an employer terminate an employee during annual leave in UAE?
No. An employer cannot terminate an employee during sick leave or annual leave, and any termination notice issued during these periods is null and void.
What happens to unused annual leave when employment is terminated in UAE?
The employee is entitled to payment for unused annual leave, calculated based on the wage they were receiving at the time the leave was due.
How much maternity leave is a working woman entitled to in UAE?
60 days in total under Federal Decree-Law No. 33 of 2021 — 45 days at full pay followed by 15 days at half pay. At the end of this leave, she may extend by up to 45 days without pay if illness is certified by a government physician.
Are official holidays included in the calculation of annual leave in UAE?
Yes. Official holidays falling within an annual leave period are counted as part of that leave rather than added on top of it.
References
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Leave entitlements can vary based on specific employment contract terms and free zone regulations. Always consult a UAE-licensed lawyer or MOHRE regarding your specific circumstances.
UAE Travel Ban Check — employment disputes can sometimes result in travel restrictions; check your status if a case has been filed.
UAE Court and Police Case Check — check whether any employment-related case has been filed in the UAE court system.
