Are you curious about Leave Salary Calculation In UAE? Look no further. This article will give you a detailed analysis of the leave salary calculation process and introduce you to a handy leave salary calculator.
Explore the factors that affect your leave salary, understand the rules for using annual leaves, and find out what to do if your company doesn’t pay your full salary during your time off.
Key Takeaways
- Leave entitlement in UAE is based on length of service, with employees earning 2 days of annual vacation per month for the first year and 30 days of annual leave per year after the first year.
- Leave salary calculation in UAE takes into account factors such as basic salary, entitled leave days, housing allowance, additional allowances or benefits, and specific rules and regulations set by UAE labour law.
- A leave salary calculator is a user-friendly tool that provides instant and accurate calculations, saving time and helping with financial planning.
- Different types of leave, such as disability leave, compassionate leave, study leave, Hajj leave, and compensatory leave, may have different provisions and conditions that impact leave salary calculation.
Introduction to leave in the UAE
- You are entitled to a specific number of leave days in the UAE based on your employment contract and the labour laws.
- Leave entitlements in the UAE are governed by “Federal Law No. 8 of 1980“, also known as the UAE Labor Law.
- According to the law, employees are entitled to annual leave, sick leave, and public holidays.
- Annual leave is granted based on the length of service, with employees being entitled to 30 days of leave after completing one year of service.
- Sick leave, on the other hand, allows employees to take time off work due to illness or injury. The number of sick leave days varies based on the length of service and the nature of the illness.
- Public holidays, such as New Year’s Day and Eid, are also considered leave days.
Leave Entitlement in the UAE
When calculating your leave salary in the UAE, it’s crucial to understand your leave entitlement. Leave entitlement refers to the number of days you’re entitled to take as annual leave based on UAE labour law.
| Length of Service | Leave Entitlement |
|---|---|
| Less than 1 year | 2 days of annual leave per month |
| 1 year or more | 30 days of annual leave per year |
Additionally, employees are entitled to public holidays and sick leave according to the labour law.
To calculate your leave salary accurately, it’s essential to know your leave entitlement and the specific rules and regulations that apply to your situation.
Calculation of UAE Annual Leave Salary
To understand the calculation of annual leave salary in the UAE, you need to consider several factors.
Basic Salary
- This is the main amount of money you earn for your job without any extras.
Annual Leave Entitlement:
- This is the number of days you’re allowed to take off from work while still getting paid.
Additional Allowances or Benefits:
- Any extra money or perks you might get beyond your basic salary.
Why it’s important to calculate Annual Leave Salary?
- To make sure you’re paid fairly when you take time off from work.
- It includes your basic salary, the days you’re taking off, and any extra money or benefits you might get.
In simpler terms, it’s about making sure you get the right amount of money when you take your annual vacation.
Understanding leave salary calculation in the UAE
To understand how your annual leave salary is calculated in the UAE, it’s important to consider various factors and components.
Leave Encashment:
- This involves receiving payment for any unused leave days.
Leave Salary Calculation Formula:
- Takes into account the Formula for salary calculation in UAE
=Leave Balance * Basic Salary / (365 - Leave Entitlement)- Base salary
- Number of entitled leave days
- Additional allowances or benefits
Understanding UAE Labour Law:
- It’s crucial to know the specific rules and regulations outlined in the “UAE labour law“.
“Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector (UAE Labour Law) Ministerial Resolution No. 48 of 2022 on the Implementation of the Provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector All important points:”
Annual leave entitlement: Employees are entitled to an annual leave with full pay of not less than 30 days for each year of their service (Article 29(1) of the UAE Labour Law). Accrual of annual leave: Annual leave accrues from the first day of employment. Taking annual leave: Employees must take their annual leave within two years of it accruing (Article 29(2) of the UAE Labour Law). Employers cannot prevent employees from taking their annual leave. Annual leave salary: Employees are entitled to receive their full monthly salary, including basic salary and allowances, while on annual leave (Article 29(1) of the UAE Labour Law). Termination of employment: If an employee’s employment is terminated before they have taken all of their accrued annual leave, they are entitled to be paid for the unused leave (Article 29(9) of the UAE Labour Law). Examples:
Understanding UAE Labour Law
An employee who has completed one year of service is entitled to 30 days of annual leave. An employee who has completed six months of service is entitled to 12 days of annual leave (2 days per month). An employee who is on a monthly salary of AED 10,000 is entitled to receive AED 10,000 in salary while on annual leave. If an employee’s employment is terminated after six months of service and they have not taken any annual leave, they are entitled to be paid for six days of annual leave (2 days per month). Additional notes:
Guidelines Familiarization:
By becoming familiar with these guidelines, you ensure correct compensation for your annual leave.
Consulting with your employer or referring to official sources can provide further clarification on the intricacies of understanding leave salary calculation in the UAE.
Leave Salary Calculator For United Arab Emirates
To calculate your leave salary, use the Leave Salary Calculator. This tool is designed to make the process of determining your annual leave salary in the UAE quick and easy.
Leave Salary Calculator UAE
Here are three key features of the Leave Salary Calculator that will help you in your calculations:
Accurate calculations:
The Leave Salary Calculator takes into account all the necessary factors required for leave salary calculation in the UAE, such as your basic salary, the number of days of leave you have accrued, and any additional benefits or allowances you may be entitled to.
User-friendly interface:
The calculator has a simple and intuitive interface, making it easy for you to input the required information and obtain accurate results without any confusion.
Time-saving:
By using the Leave Salary Calculator, you can avoid the hassle of manual calculations and save valuable time. The calculator instantly provides you with the accurate amount of leave salary you’re entitled to, allowing you to plan your finances accordingly.
Related: “C3 Pay Card features“| “UAE TRN verification“| “Esaad Card enrollment“.
leave salary calculation in UAE in Excel
Calculating leave salary in UAE in Excel can be done using the following steps:
- Open Excel and Start by Creating a table with Below mentioned columns:
- Employee Name
- Basic Salary
- Leave Entitlement
- Leave Taken
- Leave Balance
- Leave Salary
Example:
| Employee Name | Basic Salary | Leave Entitlement | Leave Taken | Leave Balance | Leave Salary |
|---|---|---|---|---|---|
| Abdullah Balushi | 10,000 | 30 | 20 | 10 | 2,000 |
| Ahmed Kamali | 12,000 | 30 | 15 | 15 | 3,000 |
| Ali Mohammed | 8,000 | 30 | 25 | 5 | 1,000 |
- Calculate the leave balance:
- The leave balance is the difference between the leave entitlement and the leave taken.
- In Excel, you can use the following formula to calculate the leave balance:
=Leave Entitlement - Leave Taken
- Calculate the leave salary:
- The leave salary is the amount of money that an employee is paid for the leave that they have taken.
- In Excel, you can use the following formula to calculate the leave salary:
=Leave Balance * Basic Salary / (365 - Leave Entitlement)
- Apply the formulas to the table:
- Copy the formulas down the column so that they are applied to all of the employees in the table.
- Format the table:
- Add borders and colours to the table to make it easier to read.
- Print the table:
- You can print the table or save it as a PDF file.
Factors Affecting Leave Salary Calculation
When calculating your leave salary in the UAE, several factors can affect the final amount.
These include:
- Sick leave
- Maternity leave
- Parental leave
- Disability leave
- Compassionate leave
Each of these types of leaves may have different provisions and conditions that can impact your leave salary calculation.
Sick leave
During sick leave in UAE, factors such as the duration and frequency of your absences will affect the calculation of your leave salary. It’s important to understand how these factors can impact your leave pay. Here are three key considerations:
Duration of Sick Leave:
The length of your sick leave will directly impact your leave pay. The longer your absence, the more it will affect your salary calculation.
Frequency of Sick Leave:
If you frequently take sick leave, it can have a cumulative effect on your leave pay. Employers may consider the pattern of your absences when calculating your salary.
Paid Time Off (PTO) Policy:
Familiarize yourself with your company’s PTO policy. Some organizations have specific guidelines for sick leave and may offer different benefits or salary calculations compared to regular vacation days pay.
Understanding these factors will help you navigate the calculation of your leave pay effectively and ensure you receive the appropriate compensation during sick leave.
According to the UAE Labour Law, employees are entitled to sick leave of 90 days per year, which varies based on the type of contract and is applicable after a three-month probation period.
- Full pay for the first 15 days.
- Half pay for the next 30 days.
- No pay for the rest 45 days.
Maternity leave
As a working woman in the UAE, if you go on maternity leave, the duration and timing of your absence will directly impact the calculation of your leave salary. Maternity leave is a crucial period for new mothers, and it is important to understand how your salary will be calculated during this time.
To calculate your leave salary, you need to consider factors such as the length of your maternity leave, whether it is fully paid or partially paid, and any additional benefits provided by your employer.
Additionally, you should be aware of the laws and regulations regarding maternity leave in the UAE, as they may vary depending on your employment contract and the policies of your company.
To help you better understand how your leave salary is calculated with Maternity Leaves, refer to the table below:
| Factor | Description |
|---|---|
| Length of Maternity Leave | Three Months your maternity leave is fully paid. |
| Salary in Maternity | Three months with Full Salary |
| Payment during Leave | 3 Months your maternity leave is fully paid. |
| Additional Benefits | Any additional benefits provided by your employer during maternity leave. |
Parental leave
If you’re a working parent in the UAE, the length and timing of your parental leave will directly impact the calculation of your leave salary. Here are three factors that affect how your leave salary is calculated:
Duration of parental leave: The longer your parental leave, the higher your leave salary will be. In the UAE, the duration of parental leave can vary depending on the company and the employee’s length of service.
Salary during parental leave: Your leave salary is typically calculated based on your average salary during the 12 weeks preceding your parental leave. If you have received any bonuses or allowances during this period, they may also be included in the annual leave calculation.
Timing of parental leave: The timing of your parental leave can affect your leave salary. If you take your parental leave during a time when there are additional allowances or benefits in place, such as during Ramadan or national holidays, your leave salary may be higher.
Disability leave
When calculating your leave salary in the UAE, it is important to consider the factors that affect your disability leave. Disability leave is granted to employees who are unable to work due to a temporary or permanent disability. The duration of disability leave depends on the severity of the disability and the recommendation of a medical professional.
During this entire period, employees are entitled to receive financial benefits as a percentage of their basic salary as leave salary. The percentage varies based on the duration of the disability leave, as shown in the table below:
| Duration of Disability Leave | Leave Salary |
|---|---|
| Up to 90 days | 100% |
| 91-180 days | 50% |
| 181-360 days | 25% |
| More than 360 days | Unpaid |
It is important to note that disability leave is subject to verification by the employer and may require medical documentation.
Compassionate leave
You are entitled to compassionate leave in the UAE, which may affect the calculation of your leave salary. Compassionate leave is granted to employees who need to take time off work due to the death or critical illness of a family member.
| Relationship to Deceased Family Member | Compassionate Leave Duration | Pay |
|---|---|---|
| Spouse or partner | 5 days | Paid |
| Parent, child, sibling, grandchild, or grandparent | 3 days | Paid |
It is crucial to communicate with your employer and HR department to ensure that you understand the specific details and implications of compassionate leave on your leave salary calculation.
Study leave
Study leave can impact the calculation of your leave salary in the UAE. When you take study leave, your employer may deduct the salary for the duration of your leave. This is because study leave is considered a privilege and not an entitlement.
Eligibility Criteria:
- To qualify, individuals must be enrolled in a recognized educational institution in the UAE.
- A minimum of two years of service with the employer is required for eligibility.
Duration of Leave:
- Employees are entitled to a 10-day paid study leave each year.
Application Procedure:
- Submit a written study leave application to the employer at least two weeks before the scheduled examination date.
“This information is in accordance with the new UAE Labor Law, effective as of February 2, 2022, providing valuable study benefits to eligible employees.“
Hajj leave in UAE
Taking Hajj leave can also impact the calculation of your leave salary in the UAE. Here are factors that can affect how your leave salary is calculated:
| Eligibility: | Must be a Muslim employee. | Must have completed at least six months of service with the employer. |
|---|---|---|
| Duration: | Employees are entitled to a maximum of 30 days of unpaid Hajj leave. | Hajj’s leave is unpaid. |
| Application Process: | Employees must apply for Hajj leave in writing to their employer at least two months before the start of the Hajj season. | The application should include a copy of the Hajj permit and a letter from the Hajj agency confirming the employee’s registration. |
| Approval: | The employer has the discretion to approve or deny the Hajj leave request. | The employer may request additional documentation from the employee, such as a medical certificate or proof of financial ability to perform the Hajj. |
| Payment: | Hajj leave is unpaid. | |
| Extension: | Hajj leave cannot be extended. |
Compensatory leave
One factor that affects the calculation of your leave salary in the UAE is the availability of compensatory leave. Compensatory leave refers to additional time off granted to employees for working extra hours or on public holidays.
| Eligibility for Compensatory Leave | Employees are entitled to compensatory leave under the UAE Labor Law if they are required to work on any of the following days: |
|---|---|
| Official holidays Rest days (Friday and Saturday) Overtime days (beyond the standard 8-hour workday or 48-hour workweek) | |
| Amount of Compensatory Leave | Official Holiday: One-day compensatory leave + 50% extra basic salary for each worked day. Rest Day: Half day compensatory leave + 25% extra basic salary for each worked day. Overtime: One-hour compensatory leave + 25% extra basic salary for each hour worked. |
The number of days or hours of compensatory leave you have accumulated will be added to your total leave balance, resulting in a higher leave salary. It’s important to keep track of your compensatory leave and ensure that it’s reflected accurately in your leave salary calculation to receive the full benefits you’re entitled to.
Rules for Using Annual Leaves in the UAE
To understand the rules for using annual leaves in the UAE, you need to be aware of certain regulations and guidelines. Here are three important points to keep in mind:
Eligibility:
Employees in the UAE are entitled to annual leave after completing a certain entire period of service, typically six months. However, the specific eligibility criteria may vary depending on the company’s policies and the applicable labour laws.
Duration:
The duration of annual leave is typically calculated based on the number of days an employee has worked. As per the UAE labour law, employees are entitled to a minimum of 30 calendar days of leave per year. However, employers may offer more leave days based on their discretion or the employee’s length of service.
Approval Process:
Before taking annual leave, employees need to submit a formal request to their employer. The request needs to be approved by the employer in accordance with the company’s policies and operational requirements.
What if my company does not pay full salary during annual leave?
If your company doesn’t pay the full salary during your annual leave, it can have significant financial implications for you. Here are three things you need to know about this situation:
Legal requirements:
According to UAE labour law, companies are obligated to pay employees their full salary during annual leave. Failure to do so is a violation of the law and can result in penalties for the employer “through the Labour LAW Case.“
Contractual agreements:
It’s essential to review your employment contract to understand the terms and conditions regarding annual leave. If your contract states that your company should pay you the full salary during this time, you have a legal right to receive it.
Resolving the issue:
If your company fails to pay your full salary during annual leave, you should first communicate your concerns to your employer. If the issue persists, you can seek assistance from the “Ministry of Human Resources and Emiratisation” or consult a labour lawyer to explore legal remedies.
Frequently Asked Questions
How Is the Leave Entitlement Calculated for Part-Time Employees in the UAE?
To calculate leave entitlement for part-time employees in the UAE, you need to consider the number of hours they work per week. The total leave days are calculated based on the proportion of their working hours to full-time hours.
Are Employees Entitled to Sick Leave in Addition to Annual Leave in the UAE?
Yes, employees in the UAE are entitled to sick leave in addition to annual leave. The number of sick leave days varies depending on the length of employment and can be fully paid or partially paid.
Can Unused Annual Leave Be Carried Forward to the Following Year in the UAE?
Yes, unused annual leave can be carried forward to the following year in the UAE. However, it is important to check your company’s policies as there may be limitations or conditions in place.
What Happens to an Employee’s Leave Entitlement if They Resign or Are Terminated?
If you resign or are terminated, your leave entitlement will be calculated based on the number of days you have accrued. This will be paid out to you as part of your final settlement.
Is There a Maximum Limit on the Number of Days an Employee Can Take for Annual Leave in the UAE?
In the UAE, there is no maximum limit on the number of days you can take for annual leave. However, the actual duration of your leave will depend on your employer’s policies and your employment contract.
References:
“Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector (UAE Labour Law) Ministerial Resolution No. 48 of 2022 on the Implementation of the Provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector All important points“
