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Understanding Leave Salary Calculation in UAE: A Complete Guide

Calculating leave salary in the UAE can be complex due to various factors like contract type, service duration, and salary components. Our comprehensive guide explains everything you need to know about UAE leave salary calculation according to MOHRE regulations.

What is Leave Salary in UAE?

Leave salary, also known as vacation pay, is the compensation employees receive for their entitled annual leave days. Under UAE labor law, all employees are entitled to paid annual leave, and when employment ends, any unused leave days must be compensated financially.

Key Fact: According to MOHRE, employees in UAE are entitled to 30 days of paid annual leave after completing one year of service.

Leave Salary Calculation Formula in UAE

The standard formula for calculating leave salary in UAE is:

Leave Salary = (Basic Salary + Allowances) / 30 × Leave Days Payable

However, the actual calculation can vary based on:

Contract type (limited vs unlimited)
Employment status (current vs resigned)
Service duration
Salary structure

Types of Leave in UAE

Leave Type	Entitlement	Paid/Unpaid
Annual Leave	30 days per year	Paid
Sick Leave	90 days per year	Partially paid
Maternity Leave	45 days	Paid
Study Leave	10 days per year	Paid

Practical Examples of Leave Salary Calculation

Example 1: Current Employee Taking Leave

Ahmed has completed 3 years of service with a basic salary of AED 8,000 and housing allowance of AED 2,000. He wants to take 10 days of annual leave.

Calculation:

Daily wage = (8,000 + 2,000) / 30 = AED 333.33
Leave salary for 10 days = 333.33 × 10 = AED 3,333.30

Example 2: Resigned Employee with Unused Leave

Sarah resigned after 5 years with a total salary of AED 15,000 (basic AED 10,000 + allowances AED 5,000). She has 12 unused leave days.

Calculation:

Daily wage = 15,000 / 30 = AED 500
Leave salary = 500 × 12 = AED 6,000

Common Mistakes in Leave Salary Calculation

Many employees and employers make errors when calculating leave salary. Here are the most common mistakes to avoid:

Using only basic salary instead of total salary (basic + allowances)
Not considering the exact service duration (years + months)
Incorrectly calculating daily wage rate
Forgetting to account for already taken leave days
Not updating calculations according to recent labor law changes

How Our UAE Leave Salary Calculator Works

Our online leave salary calculator simplifies the complex calculations by:

Automatically determining your leave entitlement based on service duration
Calculating daily wage rate considering all salary components
Adjusting for already taken leave days
Providing detailed breakdown of the calculation
Allowing you to save, print, or download results

For more information on UAE labor regulations, visit the official MOHRE website or consult with a legal expert.

Frequently Asked Questions

1. How is leave salary calculated in UAE after resignation?

When resigning, your employer must pay you for all unused annual leave days. The calculation is based on your total salary (basic + allowances) divided by 30, multiplied by the number of unused leave days.

2. Is housing allowance included in leave salary calculation?

Yes, according to UAE labor law, all fixed allowances that form part of your regular income should be included when calculating leave salary.

3. How many leave days am I entitled to in UAE?

Employees are entitled to 30 days of paid annual leave after completing one year of service. For partial years, leave is calculated proportionally (2.5 days per month).

4. Can my employer refuse to pay leave salary?

No, payment for unused leave is a legal right. If your employer refuses, you can file a complaint with MOHRE or the relevant labor department in your emirate.

5. Is leave salary calculation different in Dubai?

The basic calculation is the same across all UAE emirates as it follows federal labor law. However, some free zones may have specific regulations, so it's best to check with your HR department.

6. How is leave salary calculated for unlimited contract?

The calculation method is the same for both limited and unlimited contracts - based on total salary and unused leave days. The main difference is in end-of-service benefits.

7. What if I haven't completed one year of service?

For service less than one year, leave is calculated proportionally at 2 days per month. You're entitled to this leave salary upon termination of contract.

8. Are commissions included in leave salary calculation?

Only fixed allowances are included. Variable components like commissions or bonuses are typically not included unless specified in your employment contract.

9. How accurate is this online leave salary calculator?

Our calculator follows MOHRE guidelines and provides accurate estimates. However, for official purposes, always verify with your HR department as company policies may vary.

10. When should I receive my leave salary payment?

For current employees, leave salary is paid with your regular salary when taking leave. Upon resignation, it should be paid with your final settlement within 14 days of contract termination.

UAE Leave Salary Calculator Online

Calculate Your Leave Salary

Your Leave Salary Calculation

Total Leave Salary Payable

Saved Calculations

Understanding Leave Salary Calculation in UAE: A Complete Guide

What is Leave Salary in UAE?

Leave Salary Calculation Formula in UAE

Types of Leave in UAE

Practical Examples of Leave Salary Calculation

Example 1: Current Employee Taking Leave

Example 2: Resigned Employee with Unused Leave

Common Mistakes in Leave Salary Calculation

How Our UAE Leave Salary Calculator Works

Frequently Asked Questions

Related Tools

👤 About the Author

UAE Leave Salary Calculator Online

Calculate Your Leave Salary

Your Leave Salary Calculation

Total Leave Salary Payable

Saved Calculations

Understanding Leave Salary Calculation in UAE: A Complete Guide

What is Leave Salary in UAE?

Leave Salary Calculation Formula in UAE

Types of Leave in UAE

Practical Examples of Leave Salary Calculation

Example 1: Current Employee Taking Leave

Example 2: Resigned Employee with Unused Leave

Common Mistakes in Leave Salary Calculation

How Our UAE Leave Salary Calculator Works

Frequently Asked Questions

Related Tools

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