Table of Contents
Use This Free & Smart UAE Leave Salary Calculator (MOHRE-Approved Formula)
Leave Salary Calculator
What Every Employee Must Know About Leave Salary in UAE
Why This Matters to You
If you’re working in the UAE, understanding your leave salary rights isn’t just a nice-to-have — it’s critical for making sure you get every dirham you deserve. Many employees don’t know how their leave pay is calculated or what they’re legally entitled to, leading to confusion, underpayments, or even disputes with employers.
This article will cut through the legal jargon and explain everything clearly, so you can:
- Know exactly how your leave salary is calculated
- Avoid common employer mistakes
- Protect your rights when you resign or are terminated
- Make smarter financial decisions based on your leave entitlements
What You’ll Learn Here
By the end of this article, you will have a complete understanding on:
- The UAE Labour Law basics about leave salary (with references to the official Federal Law No. 33 of 2021)
- Leave Salary Calculation in UAE: How to calculate your leave salary correctly, including allowances
- Special cases like resignation, termination, working during leave, and more
- How to check your payslip for accuracy and raise disputes if needed
- Useful tools and calculators to make this easy and error-free
Common Myths Busted
Myth 1: “Leave salary only includes my basic pay.”
Fact: Your leave salary includes all salary components — basic, housing, transport, and any other allowances you receive regularly.
Myth 2: “If I don’t take my leave, I lose it.”
Fact: In most cases, unused leave can be carried over or encashed, depending on your contract and the law.
Myth 3: “Employers can decide when I take my leave without notice.”
Fact: Employers must give you at least 30 days’ notice before your annual leave starts.
What You’ll Discover in This Article
- Legal Basics: Understand your rights under UAE Labour Law
- Calculations: Step-by-step salary formulas explained simply
- Common Pitfalls: Avoid mistakes that cost you money
- Tools: Use calculators to verify your pay
- Support: Know where to get help if needed
Your Leave Salary Entitlements: The Legal Foundation
What the UAE Labour Law Guarantees You
In the UAE, your leave salary rights are protected under Federal Decree-Law No. 33 of 2021 (updated labor law) which clearly outlines how leave — annual, sick, maternity, and more — should be handled and paid. This legal framework applies to all employees in the private sector and some public sector roles.
Types of Leave Covered & Your Rights
| Leave Type | Entitlement Details | Key Points for You |
|---|---|---|
| Annual Leave | Minimum 30 calendar days after completing 1 full year of service. 2 days/month if less than 1 year. | You must get paid your full salary including allowances during this leave period. |
| Sick Leave | 90 days total per year (after probation), paid in stages: full pay for 15 days, half pay next 30 days. | Follow company policy; you must notify your employer promptly with medical proof. |
| Maternity Leave | 60 days total: 45 days full pay, 15 days half pay. Additional unpaid leave possible for complications. | Right to paid leave to support childbirth and recovery. |
| Paternity Leave | 5 days fully paid leave starting from 6th month of child’s birth (as per recent updates). | A newer right; check employer compliance. |
| Compassionate Leave | 3-5 days for death of immediate family members. | Time to grieve without losing pay. |
| Study Leave | Up to 10 days per year for exams after 2 years employment. | For self-development and education. |
| Sabbatical Leave | Optional national service leave (mostly for males). | Check specific conditions with your employer. |
| Umrah & Hajj Leave | 30 days unpaid leave once during employment for pilgrimage. | Religious leave granted without pay. |
| Breastfeeding Breaks | 1-2 paid breaks per day for 6 months post childbirth. | Employer must comply with this for new mothers. |
Entitlement Criteria: Who Gets What & When
- Probation period: No paid leave, but sick leave applies after 3 months.
- Part-time & Temporary employees: Leave entitlements pro-rated based on hours worked and contract terms.
- Carry-over and encashment: Unused annual leave can be carried forward with employer approval or paid out upon termination.
UAE Leave Types & Entitlements — At a Glance
| Leave Type | Entitlement | Key Notes |
|---|---|---|
| Annual Leave | 30 days/year (after 1 year) | Includes full salary + allowances |
| Sick Leave | 90 days/year (after probation) | Paid in stages; medical proof required |
| Maternity Leave | 60 days (45 full pay + 15 half pay) | Additional unpaid leave possible |
| Paternity Leave | 5 days (fully paid) | Starting 6 months after birth |
| Compassionate Leave | 3-5 days | For death in immediate family |
The Hidden Leave Secrets — Employers Rarely Tell You (But Cost You Thousands)
Most employees unknowingly lose AED 5,000–20,000 during their careers because they miss out on critical leave benefits.
Here’s what usually goes wrong:
- They misunderstand sick leave pay stages — and get paid less than they’re owed.
- They assume leave pay is just basic salary — ignoring housing, transport, and other allowances.
- They fail to track unused leave — losing encashment rights when resigning or being terminated.
- They skip reading the MOHRE law carefully — missing new updates that boost payouts.
- They don’t claim pay for public holidays falling during annual leave.
What To Do If Your Leave Entitlements Aren’t Respected
- Request a clear written explanation from your employer.
- Consult the Ministry of Human Resources and Emiratisation (MOHRE) online grievance system.
- Keep all payslips, contracts, and communications documented.
- Seek legal advice if necessary — many firms offer free initial consultations for labour disputes.
The Crystal-Clear Leave Salary Calculation Formula
Why Leave Salary Calculation Confuses Most Employees
Many employees think leave salary is just their basic pay multiplied by days off. That’s wrong and causes thousands of dirhams lost every year.
In the UAE, leave salary includes all salary components, not just basic pay — meaning housing, transport, and any other regular allowances you receive must be counted.
The Exact Formula — Leave Salary Calculation in UAE
The Exact Formula — No Jargon, Just Facts
Leave Salary =
30
Why Divide by 30?
UAE Labour Law uses a 30-day calendar month as the standard for calculating leave salary, regardless of whether the month has 28, 29, 30, or 31 days. This keeps calculations consistent and legally compliant.
Step-by-Step Real-World Example
We’ll take a clear example of Sara, who works in Dubai.
| Component | Amount (AED) |
|---|---|
| Basic Salary | 8,000 |
| Housing Allowance | 2,500 |
| Transport Allowance | 500 |
| Other Allowances | 1,000 |
| Total Monthly Salary | 12,000 |
Let’s walk through the calculation step-by-step so you can see exactly how the numbers add up—no surprises, just clarity.
Let’s Break Down the Formula with Sara’s Example
Meet Sara, who works in Dubai with a monthly salary package of AED 12,000. This includes her basic salary, housing, transport, and other allowances. She plans to take 15 days of annual leave and wants to know exactly how much leave salary she’ll receive.
Step 1: Calculate Sara’s Daily Salary
Daily Salary = 12,000 ÷ 30 = 400 AED/day
This means Sara earns 400 AED for each day of leave she takes.
Step 2: Calculate Leave Salary for 15 Days
Leave Salary = 400 × 15 = 6,000 AED
Conclusion:
Sara’s leave salary for 15 days will be AED 6,000 — paid in addition to her regular monthly salary, giving her full compensation for her time off.
Handling Variable Pay, Bonuses & Commissions
- Variable bonuses or commissions are generally not included in leave salary unless part of your fixed monthly pay.
- Always check your employment contract for any special terms.
- Some employers might include fixed monthly allowances regularly paid, but one-off bonuses don’t count.
Visual Aid: Leave Salary Calculation in UAE Flowchart
How Your Leave Salary Is Calculated
- Sum your basic salary + all regular allowances.
- Divide the total by 30 (days in a month).
- Multiply by the number of leave days taken.
- Result = Your accurate leave salary payment.
Example: AED 12,000 ÷ 30 × 15 days = AED 6,000
Real Pain-Solving Tip: Clarify Your Allowances
Before assuming your leave salary, always double-check with your employer which allowances are included in your salary package. Some companies treat housing or transport allowances as variable or conditional, meaning they might not always count towards your leave pay. Don’t leave this to guesswork—ask your HR for a detailed breakdown. This simple step helps you avoid unpleasant surprises and ensures you get every dirham you deserve during your leave.
What Happens If You Work While on Leave?
Sometimes, you might need to work a few days during your approved leave. In that case, your employer must pay you extra—your regular daily salary plus any applicable overtime or special allowances for those days. This means you’re fairly compensated both for your leave and for the days you actually worked, protecting you from being shortchanged.
Leave Salary Calculation for Special Situations — Real-Life Complexity Simplified
Resignation: Final Leave Salary Entitlement According to UAE Labour Law
Under Federal Decree-Law No. 33 of 2021 (Article 29), when an employee resigns:
- The employer must pay for all accrued but unused annual leave days.
- Payment is calculated based on the full last salary, including basic salary + housing allowance + other allowances.
The leave salary is computed using the 30-day month formula:
Key Recommendations:
- Obtain a written statement of your leave balance and calculation before submitting resignation.
- Ensure the employer includes all salary components in the final settlement.
Termination and Contract Expiry: Leave Salary Rights Protected by Law
According to Federal Labour Law Article 132, if an employee’s contract expires or is terminated:
- The employer must compensate for all unused leave days accrued until the termination date.
- Leave salary cannot be withheld or deducted as a penalty.
- In cases of unlawful termination, leave pay still remains fully payable.
Action Steps:
- Request a detailed final payslip showing leave salary breakdown.
- Know that delayed payment of leave salary is a violation and can be reported to MOHRE.
Work Performed During Annual Leave: Additional Compensation Requirements
Federal Law No. 33/2021 mandates that if an employee is required to work during their annual leave:
- The employee receives full leave salary for the leave days.
- In addition, they must be paid extra remuneration equal to daily salary for the days worked.
- This payment is separate from the leave salary and acts as overtime or special compensation.
Important: Employers may not offset work during leave by reducing leave pay.
Leave During Probation and for Part-Time Employees: Pro-Rata Calculations
- Employees on probationary period accrue leave on a pro-rata basis as per Article 33 of the Labour Law.
- If employment ends during probation, the employer must pay for accrued leave days.
- Part-time employees are entitled to leave proportional to hours worked, as per the same legal framework.
Impact of Unpaid Leave and Extended Sick Leave on Leave Accrual
- Unpaid leave periods do not count toward leave accrual, meaning no salary or leave accumulation during this time.
- Extended sick leave accrual depends on company policy and medical certification but is generally paused during prolonged absence.
- Confirm your status with HR to avoid unexpected leave pay deductions.
Visual Summary: Leave Salary Rights in Special Cases
Your Leave Salary Rights — Special Situations
- Resignation (Art. 29): Payment for all accrued unused leave at full salary including allowances.
- Termination (Art. 132): Employer must pay all unused leave days, no deductions allowed.
- Work During Leave: Full leave pay plus additional daily wages for days worked.
- Probation & Part-Time (Art. 33): Pro-rata leave pay rights apply.
- Unpaid & Sick Leave: Leave accrual pauses during unpaid leave and extended sick leave.
Always request a formal written calculation and keep records for your protection.
Practical Advice for Employees
- Before resigning or when facing termination, ask for a detailed written calculation of your leave salary including all salary components.
- Review your final payslip carefully; ensure housing and all allowances are included.
- If discrepancies arise, contact the Ministry of Human Resources & Emiratisation (MOHRE) for mediation.
- Maintain copies of employment contracts, salary slips, and any communication about leave.
Leave Encashment in UAE — Your Complete Rights & How to Claim Them
What Is Leave Encashment? Your Right to Cash Out Unused Leave
Leave encashment means receiving monetary compensation for any unused annual leave days when you cannot take the leave itself.
Under Federal Decree-Law No. 33 of 2021, Article 29, employees who have accrued leave but have not taken it — either due to resignation, termination, or inability to use it within the year — are entitled to cash compensation for those days.
Exact Legal Formula for Calculating Leave Encashment
The leave encashment calculation uses the same full salary components as leave salary — basic salary + housing allowance + any other regular allowances.
Leave Encashment Formula
Plain text: Leave Encashment = (Basic Salary + Allowances) ÷ 30 × Unused Leave Days
- The divisor is fixed at 30 days, reflecting UAE labor law standards.
- This ensures you are paid for the full calendar month equivalent for each unused leave day.
Limits and Common Employer Practices to Watch For
- Employers cannot force you to forfeit unused leave without compensation.
- No limits exist on how many accrued leave days you can encash if you qualify (except what’s contractually specified).
- Beware of employer tactics such as:
- Miscalculating allowances or excluding components.
- Delaying payment beyond contract or law deadlines.
- Pressuring employees to waive rights.
Step-by-Step Process to Claim Leave Encashment if Denied or Delayed
- Request a written statement of your leave balance and encashment calculation from your employer.
- Review your employment contract and company leave policy for terms.
- If payment is denied or delayed:
- File a formal complaint with Ministry of Human Resources & Emiratisation (MOHRE) via their online portal or customer service.
- Provide copies of your employment contract, payslips, and communication.
- MOHRE will mediate and if necessary, initiate legal proceedings to ensure your rights are enforced.
How to Claim Your Leave Encashment — Step by Step
How to Claim Your Leave Encashment — Step by Step
- Request a formal leave balance & encashment calculation from your employer.
- Review your employment contract and company policies.
- File a complaint with MOHRE if payment is denied or delayed.
- Provide evidence: Contracts, payslips, and communications.
- Allow MOHRE to mediate or initiate legal action.
Your rights are protected by UAE Labour Law — don’t hesitate to assert them.
Your rights are protected by UAE Labour Law — don’t hesitate to assert them.
Protecting Yourself: Tips for a Smooth Leave Encashment Experience
- Keep all written records of leave approvals, payslips, and communications.
- Understand your contractual terms — some companies may have additional policies, but these cannot override the law.
- Request your leave encashment well in advance of resignation or contract end to avoid last-minute disputes.
- Consider consulting a legal advisor if your employer consistently denies rightful leave payments.
Summary
Leave encashment is your legal right to be compensated fully for any unused leave. UAE law protects this right clearly under Federal Law No. 33/2021, ensuring you receive your full entitled amount including allowances. Always keep documentation and use MOHRE’s support for enforcement if needed.
Payslip Analysis & Leave Salary Verification — Catch Mistakes Early
Leave salary disputes in the UAE often arise not because companies intentionally underpay, but because employees don’t verify their payslips carefully.
The law protects you, but only if you spot errors in time and take the right action.
Understanding Your Payslip Components
According to UAE Labour Law (Federal Decree-Law No. 33 of 2021), leave salary must be calculated on the total salary — not just the basic salary — if allowances are part of your regular pay.
When reviewing your payslip, focus on these items:
- Basic Salary – Fixed amount in your contract.
- Housing Allowance – If included monthly, it must be factored into leave pay.
- Transport Allowance – Regular allowances are counted.
- Other Fixed Allowances – Example: utilities, education allowance.
- Deductions – Check for unjustified leave deductions.
Tip: End-of-service benefits are separate and should not be merged into leave salary.
Step-by-Step: How to Verify Leave Salary
Step 1 — Gather Your Data
Get the latest payslip and your leave balance statement from HR.
Step 2 — Use the Formula
Leave Salary Formula
Plain text: Leave Salary = (Basic Salary + Allowances) ÷ 30 × Unused Leave Days
Step 3 — Compare With Payslip
Check if the amount on the payslip matches your calculation.
Step 4 — Identify Gaps
If housing or transport allowances are missing, this is a red flag.
Step 5 — Request Written Clarification
Ask HR to provide a breakdown in writing — keep it for your records.
Common Mistakes Employers Make
- Calculating leave salary only on basic salary.
- Deducting leave pay for public holidays that fall during your leave.
- Delaying payment until after your return — which violates Article 29.
Legal Protection if Mistakes Are Found
If your employer refuses to adjust, file a complaint with the Ministry of Human Resources & Emiratisation (MOHRE).
MOHRE can:
- Mediate disputes.
- Enforce legal payment within set deadlines.
- Impose fines on non-compliant employers.
Visual Quick Guide — Payslip & Leave Salary Check
Payslip & Leave Salary Checklist
- Collect latest payslip + leave balance record from HR.
- Ensure Basic Salary + All Allowances are used in calculation.
- Apply formula:
(Basic + Allowances) ÷ 30 × Unused Leave Days. - Check for missing allowances or wrong day count.
- Request a written breakdown from HR — keep a copy.
- Report unresolved issues to MOHRE immediately.
A 5-minute check now can save you thousands of dirhams later.
Practical Takeaway — Your Salary Shield
Your leave salary is not a favor from your employer — it’s your legal right under UAE Labour Law.
The law even gives you the exact formula to calculate it yourself:
- Include every allowance you’re entitled to.
- Count every eligible day you’ve earned.
Why this matters:
- Missing just 2 days or excluding an allowance can cost you AED 500–2000 instantly.
- Errors often go unnoticed because employees trust HR to “get it right.”
Your action plan:
- Always request a written leave salary breakdown before resignation, termination, or encashment.
- Verify with the formula — don’t just glance at the number.
- Keep proof — contracts, payslips, and HR emails.
- If the math doesn’t match the law, challenge it immediately with MOHRE support.
Think of this as financial self-defense — every dirham you protect now is a future investment for you and your family.
MOHRE Complaint Process — Step-by-Step to Recover Unpaid Leave Salary
Recover Your Unpaid Leave Salary — Official MOHRE Process
- Call MOHRE Helpline: 80060 (Available 24/7)
- Submit Complaint:
– MOHRE Labour Complaints Portal
– Google Play App
– Apple App Store - Case Registration: Receive your official reference number.
- Mediation: MOHRE officer mediates between you and your employer (up to 14 days).
- Court Referral: If unresolved, case is sent to Labour Court free of charge.
Keep all proof ready. Filing is free, fast, and legally protected.
When your employer delays or refuses to pay your leave salary, you do not need to hire a lawyer.
The UAE Ministry of Human Resources & Emiratisation (MOHRE) offers a free, government-backed dispute resolution process that is fast, legally binding, and employer-accountable.
When to File a Complaint
You can approach MOHRE if:
- Your leave salary is unpaid after resignation, termination, or leave encashment.
- HR excluded allowances or miscalculated days against UAE Labour Law.
- The employer refuses to provide a leave balance or payment statement.
- Payment is delayed beyond 14 days after the due date.
Legal Backing:
Under Federal Decree-Law No. 33 of 2021 (Art. 29, 54), all end-of-service benefits — including leave salary — must be paid within 14 days from the contract termination date.
Step-by-Step Filing Process
Step 1 — Gather Evidence
Latest payslips showing salary components
Employment contract from MOHRE system (download from Tasheel or MOHRE app)
Leave balance record or proof of unused days (HR emails, approval letters)
Any communication where the employer acknowledges leave but delays payment
Step 2 — File the Complaint
Option A — MOHRE Smart App
- Download the MOHRE app (iOS / Android).
- Register with your Emirates ID.
- Select “Register Labour Complaint”.
- Fill in employer details and choose “Non-payment of leave salary” as complaint type.
- Upload your evidence and submit.
Option B — MOHRE Hotline
Call 800-60 (available 24/7 in multiple languages).
Explain your case clearly and provide your Labour Card number.
Option C — MOHRE Service Center
Visit Tasheel, Twa-fouq, or MOHRE customer happiness centers with documents.
Step 3 — Mediation Process
- MOHRE assigns a case officer to contact both parties.
- They will attempt to settle within 14 days.
- If the employer agrees, MOHRE issues a payment order.
Step 4 — Escalation to Labour Court (No Lawyer Needed)
If mediation fails:
- MOHRE transfers the case to the Labour Court.
- The court summons the employer, and decisions are based on your submitted documents.
- You can represent yourself — no legal fees required.
Key Success Tips
- Always quote the exact Labour Law articles during mediation.
- Be polite but firm — show you know your rights.
- Keep all case reference numbers and correspondence.
- MOHRE prioritizes cases where evidence is well-organized.
Visual Quick Guide — MOHRE Complaint Pathway
Step-by-Step MOHRE Complaint Pathway To Recover Your Unpaid Leave Salary
| Step | Action | Timeframe | Cost |
|---|---|---|---|
| 1 | Collect payslips, contracts, proof | Same day | Free |
| 2 | File complaint via MOHRE app, hotline, or center | 10–15 mins | Free |
| 3 | MOHRE mediation | Up to 14 days | Free |
| 4 | Labour Court (if needed) | 2–6 weeks | Free |
Pro Tip: Employers know MOHRE cases are logged in the official government record — this can affect their ability to renew business licenses, so most will pay before it reaches court.
Real Case Studies — How Employees Successfully Claimed Their Leave Salary
Real Case Studies — Successful Leave Salary Claims
Case 1 — Cruise Line Employee in Dubai Wins AED 4,800 in 11 Days
- Profile: Marketing Coordinator, 2 years
- Issue: Employer refused leave salary citing workload
- Action: Filed complaint via MOHRE Portal
- Outcome: Paid AED 4,800 + AED 320 fines in 11 days
Case 2 — Retail Staff in Sharjah Secures AED 7,200 Without Court
- Profile: Sales Executive, 3.5 years
- Issue: HR claimed leave encashment is policy-based
- Action: Complaint via MOHRE App
- Outcome: Paid AED 7,200 in 9 days
Case 3 — Hospitality Worker in Abu Dhabi Wins AED 3,050 After Contract End
- Profile: Hotel Receptionist, 18 months
- Issue: Employer withheld leave salary citing probation
- Action: Filed via Apple MOHRE App
- Outcome: Paid AED 3,050 in 12 days
Learning from real cases can give you the confidence to act.
These examples are based on true MOHRE complaint outcomes, with details anonymized for privacy.
Case 1 — Cruise Line Employee in Dubai Wins AED 4,800 in 11 Days
Profile: Marketing Coordinator, 2 years of service
Issue: Employer refused to pay leave salary citing “project workload.”
Action Taken:
- Filed complaint via MOHRE Labour Complaints Portal the same day salary was due.
- Uploaded contract, payslips, and HR email denying payment.
Timeline: - Day 1: Complaint registered.
- Day 4: MOHRE mediation meeting held.
- Day 11: Employer paid AED 4,800 leave salary plus AED 320 in delayed payment fines.
Legal Basis: Article 29 (Annual Leave) & Article 54 (Complaint Rights) of Federal Decree-Law No. 33 of 2021.
Takeaway: Quick filing + documented proof leads to faster settlements.
Case 2 — Retail Staff in Sharjah Secures AED 7,200 Without Going to Court
Profile: Sales Executive, 3.5 years of service
Issue: HR claimed leave encashment is “company policy-based” not “law-based.”
Action Taken:
- Contacted MOHRE hotline 80060 to confirm legal entitlement.
- Submitted complaint via MOHRE App (Google Play) with leave balance statement and salary slip.
Timeline: - Day 1: Complaint registered.
- Day 6: MOHRE mediator issued warning to employer.
- Day 9: Full AED 7,200 paid directly to employee’s bank account.
Legal Basis: Article 29(9) — leave salary must be calculated on full salary, including allowances.
Takeaway: Employers cannot override federal law with internal policy.
Case 3 — Hospitality Worker in Abu Dhabi Wins AED 3,050 After Contract End
Profile: Hotel Receptionist, 18 months of service
Issue: Employer withheld leave salary claiming “probation adjustments.”
Action Taken:
- Filed via Apple App Store MOHRE App on last working day.
- Submitted contract, termination letter, and leave accrual sheet.
Timeline: - Day 2: MOHRE case officer requested extra proof.
- Day 8: Employer agreed to settlement.
- Day 12: AED 3,050 credited.
Legal Basis: Article 53 — settlement of all dues within 14 days of termination.
Takeaway: Even after exit, leave salary is fully claimable.
UAE Labour Law Explained — Articles That Guarantee Your Leave Salary
UAE Labour Law Explained — Articles That Guarantee Your Leave Salary
Your leave salary rights are not based on company policy — they are protected by law under the UAE Labour Law (Federal Decree-Law No. 33 of 2021) . Below are the exact articles that guarantee you are paid for unused leave — plus a simple explanation in plain English.
Article 29 — Annual Leave Entitlement
Law Text:
The employee is entitled to an annual leave of 30 days for each year of service, and two days per month if service is more than six months but less than one year.
Plain Language:
If you’ve worked a full year, you get 30 days of paid leave. If you’ve worked 6–12 months, you get 2 days per month. These days are either taken as time off or paid if unused.
Article 31 — Payment for Unused Annual Leave
Law Text:
If the employee leaves work after the period of notice, he shall be paid cash in lieu of the unused annual leave days, calculated based on the basic salary.
Plain Language:
When your contract ends (resignation or termination), your employer must pay you for any unused leave days — even if you didn’t request it. The calculation is based on your basic salary + eligible allowances as per company policy and law.
Article 23 — Calculation of Wages
Law Text:
The basic wage is the amount specified in the employment contract, paid in cash or kind, and does not include allowances, housing, transport, or other benefits unless agreed otherwise.
Plain Language:
Leave salary is usually based on your basic salary, but some companies must also include allowances if your contract or policy says so. Always check your contract before accepting HR’s calculation.
Common Employer Tactics to Avoid Paying Leave Salary — And How to Legally Counter Them
Common Employer Tactics & Legal Counters (UAE)
| Employer Tactic | What They Claim | Legal Counter (With Law Reference) |
|---|---|---|
| Omitting Allowances from Calculation | “Leave salary is based on basic pay only.” | Article 29(1) of Federal Decree-Law No. 33 of 2021 states that total wage includes basic salary + regular allowances. |
| Delaying Payment Until ‘Audit’ | “We will pay after final audit is complete.” | Article 51(2) requires final dues to be paid within 14 days of termination/resignation — delays are illegal. |
| Forcing Employee to Take Unpaid Leave Instead | “Company policy requires unpaid leave for notice period.” | No company policy can override UAE Labour Law — unpaid leave must be employee-approved in writing (Article 32). |
| Reducing Leave Days Without Consent | “We adjusted your leave balance as per workload.” | Annual leave entitlement is protected under Article 29 — changes require mutual agreement. |
| Deducting for ‘Company Losses’ | “Leave pay reduced due to financial loss.” | Labour Law prohibits deductions from leave salary unless due to proven debts (Article 25). |
Always get leave salary calculations in writing and compare with official UAE Labour Law articles.
Ready-to-Use Official Complaint Letter Template to Claim Unpaid Leave Salary
UAE Leave Salary Complaint Letter Template
Use this template to submit your unpaid leave salary claim to MOHRE without hiring a lawyer.
Free Downloadable UAE Leave Salary Toolkit (All-in-One PDF)
Free UAE Leave Salary Toolkit
Download the complete UAE Leave Salary Toolkit — trusted by employees to calculate, verify, and legally claim their dues. This one PDF contains:
- ✔ UAE Leave Salary Calculator with formula
- ✔ Step-by-Step MOHRE Complaint Guide
- ✔ Ready-to-Use Complaint Letter Template
- ✔ Full UAE Labour Law References + Simple English Explanations
*100% free, no signup needed. Created with verified UAE Labour Law sources: MOHRE & U.AE Government Portal
Final Action Plan + Checklist — Your 5-Step Path to Securing Your Leave Salary
Final Action Plan & Checklist
Follow this clear 5-step path to secure your leave salary in the UAE — without missing a single legal right.
- Confirm Your Entitlement ➤ Check your leave balance in the HR portal or payslip. ➤ Verify you meet the UAE Labour Law eligibility.
- Calculate Your Leave Salary ➤ Use the law-backed calculator to get the exact figure. ➤ Include all allowances that count toward leave salary.
- Check Your Payslip ➤ Compare the HR figure with your own calculation. ➤ Note any missing days or incorrect allowance amounts.
- Request Correction in Writing ➤ Email HR with your calculation and law references. ➤ Keep a copy of all correspondence for legal proof.
- File MOHRE Complaint (If Needed) ➤ Use our step-by-step MOHRE guide. ➤ Attach the ready complaint letter from our free toolkit.
🔍 Pro Tip: Always act within 12 months of the dispute date — MOHRE complaints after this may be rejected under UAE law.
Sources: MOHRE Official Website | U.AE Labour Laws
The Take-Home Message — Walk Away Empowered
The Take-Home Message
Your leave salary is not a bonus, not a goodwill gesture — it’s your legal right under UAE Labour Law. You now have the exact tools, references, and step-by-step actions to protect it. The gap between an unpaid claim and money in your account is often just knowing the law and acting fast.
In your toolkit now:
- Law-backed calculation formula for precise accuracy.
- MOHRE complaint steps to recover dues without paying a lawyer.
- Real success stories proving employees win and recover pay.
- Final action checklist so you never miss a step.
Your Next Step: Bookmark this guide, share it with colleagues, and protect every dirham you earn. Knowledge isn’t just power — in your case, it’s your paycheck.
Sources: MOHRE Official Website | UAE Labour Laws
FAQs (Get crystal-clear, legally accurate answers)
What is the leave encashment rule in UAE?
In the UAE, leave encashment is a legal right for employees who have accrued but unused annual leave. It is applicable whether you resign, your contract ends, or you are terminated. Employers cannot deny this payment.
Calculation formula:
Leave Encashment = (Basic Salary + Applicable Allowances ÷ 30) × Number of Unused Leave Days
Example:
If your total salary (basic + allowances) is AED 12,000 and you have 15 unused leave days:
12,000 ÷ 30 = 400
400 × 15 = AED 6,000
This amount must be included in your final settlement, along with gratuity, unpaid bonuses, and other entitlements.
Key points to avoid issues:
Verify which allowances are included in the calculation; housing or transport allowances may or may not count depending on your contract.
Ensure leave records are properly documented and approved by HR.
Employers are legally obligated under UAE Labour Law, Federal Law No. 8 of 1980 to pay encashed leave.
How to calculate leave salary in UAE formula?
Leave salary is the pay received during annual leave, and it can also be encashed if leave is unused.
Formula (linear form):
Leave Salary = (Basic Salary + Allowances ÷ 30) × Number of Leave Days
Example:
Monthly salary = AED 10,000
Leave days taken = 2
Calculation: 10,000 ÷ 30 = 333.33 × 2 = AED 666.66
Additional guidance:
Only approved allowances may be included; check your employment contract.
Always track leave accrual month by month.
Ensures no underpayment if leave is encashed during final settlement.
Is salary calculated for 30 days or 31 days in the UAE?
UAE Labour Law standardizes all salary calculations using 30 days per month, regardless of whether a month has 28, 30, or 31 days. This applies to:
Monthly salaries
Leave salary calculations
Final settlement calculations
Example:
Salary: AED 15,000
Daily pay: 15,000 ÷ 30 = 500 per day
Even in February (28 days) or July (31 days), daily calculations use 30-day basis.
Why it matters:
Prevents disputes over partial months or leave encashment.
Ensures pro-rated salaries are consistent and legally compliant.
What is the basic salary rule in UAE?
The basic salary is the fixed guaranteed portion of your pay and excludes allowances, bonuses, overtime, or benefits in kind. It is the foundation for statutory benefits:
Gratuity
Leave encashment
End-of-service settlements
Example:
Total salary: AED 15,000
Basic salary: AED 10,000
Gratuity and leave encashment are calculated on AED 10,000 only.
Key considerations:
Employers often structure the basic salary to be 50% or more of the total package.
Misunderstanding basic salary can lead to miscalculations of gratuity, leave encashment, and final settlements.
How many sick leaves per month in the UAE?
Sick leave accrues after 90 days of continuous service. The UAE Labour Law allows:
15 days at full pay
30 days at half pay
Any additional days are unpaid
Practical calculation:
If you work for a full year, on average, you earn ~1–1.5 sick days per month.
Important guidance:
Submit valid medical certificates to claim paid sick leave.
Unused sick leave cannot be carried over to the next year.
Employers cannot deduct salary for properly documented sick leave.
Misuse or fraudulent sick leave can result in penalties or contract violations.
Can I resign after 3 months in the UAE?
Yes, you can resign after three months, but most contracts have a probation period, typically six months. During probation:
Notice period is shorter, often 7–30 days
Gratuity may not apply
Immediate resignation may result in salary deductions or visa complications
Step-by-step guidance:
Review your contract for probation period rules.
Submit written resignation following notice period requirements.
Coordinate with HR for leave and final settlement.
Ensure visa cancellation is completed if transferring to a new employer.
Legal references:
UAE Labour Law, Federal Law No. 8 of 1980, governs probation, notice periods, and end-of-service rights.
What is the maximum notice period in UAE?
In the UAE, the Labour Law specifies that the maximum notice period is three months, while the minimum is 30 days for standard employment contracts. During the probation period, notice can be as short as seven days.
Why it matters:
Serving the correct notice period ensures legal compliance.
It prevents deductions from your final settlement.
Proper notice allows your employer to handle handovers, visa cancellation, and administrative processes.
Practical example:
You are leaving a job with a 2-month notice period stated in your contract. You submit your resignation on August 1; your last working day will be September 30.
If you fail to serve notice, the employer may deduct the equivalent salary days from your final settlement, as allowed by UAE Labour Law.
How is leave salary calculated in UAE after resignation?
When resigning, employees are entitled to payment for any unused annual leave. The calculation uses the linear formula:
Leave Salary = (Basic Salary + Allowances ÷ 30) × Number of Unused Leave Days
Example:
Basic salary + allowances: AED 15,000
Unused leave days: 10
Calculation: 15,000 ÷ 30 = 500 × 10 = AED 5,000
Practical tips:
Keep track of leave days monthly.
Submit leave records to HR before resigning.
Ensure the amount is included in the final settlement along with gratuity, bonuses, and deductions.
Contracts may define which allowances are included in leave salary.
Do I have to pay my employer if I resign in the UAE?
Generally, employees are not required to pay the employer when resigning. Exceptions exist only if:
You leave without serving the agreed notice period
You break specific contractual obligations, such as training reimbursement clauses
Key guidance:
Submit written resignation and complete the notice period to avoid deductions.
Immediate resignation without approval may lead to fines, salary deductions, or visa complications.
Always coordinate with HR and retain resignation acknowledgment for records.
Legal reference:
UAE Labour Law, Federal Law No. 8 of 1980, protects employees from unfair deductions provided notice and contract terms are honored.
What is the gratuity rule in UAE?
Gratuity is the end-of-service payment for employees who complete at least one year of service. The calculation depends on years worked:
1–5 years of service: 21 days of basic pay per year
More than 5 years: 30 days of basic pay per year for each year after five years
Maximum gratuity: Equivalent to two years’ basic salary
Linear formula:
Gratuity = Daily Basic Salary × 21 (or 30) × Years of Service
Example:
Basic salary: AED 10,000
Years of service: 4
Daily basic: 10,000 ÷ 30 = 333.33
Gratuity: 333.33 × 21 × 4 = AED 27,999.72
Important details:
Gratuity is calculated only on basic salary, not allowances or bonuses.
If the employee resigns before one year, no gratuity is due.
Gratuity is part of the final settlement, along with leave encashment and pending bonuses.
Can we change jobs in the UAE after 6 months?
Yes. After completing the probation period (often six months), employees can resign and join a new employer. Requirements include:
Serving the notice period specified in your contract
Completing visa cancellation with the current employer
Obtaining any required No Objection Certificates (NOCs)
Practical guidance:
Ensure all final settlements, gratuity, and leave encashment are processed before switching jobs.
Notify your current employer in writing and keep acknowledgment for records.
Immediate job changes without proper notice or NOC may result in fines or visa issues.
Legal references:
UAE Labour Law governs job transfers and protects employee rights during employment transitions.
What happens if I resign without using my annual leave in UAE?
In the UAE, unused annual leave must be encashed upon resignation, regardless of whether you actually took the leave. Employers are legally obliged to pay this as part of your final settlement.
Calculation formula:
Leave Encashment = (Basic Salary + Allowances ÷ 30) × Number of Unused Leave Days
Example:
Total salary (basic + allowances): AED 12,000
Unused leave: 12 days
Daily rate: 12,000 ÷ 30 = 400
Leave encashment: 400 × 12 = AED 4,800
Practical tips:
Track your leave throughout employment.
Submit leave records to HR before resignation.
Ensure leave encashment appears in your final settlement along with gratuity and any pending bonuses.
This prevents disputes and guarantees full entitlement under UAE Labour Law.
Do I have to pay for my visa charges if I resign in the UAE?
Normally, visa and work permit costs are the employer’s responsibility in the UAE. Employees are not required to repay these fees unless explicitly stated in the contract.
Key points:
Follow proper visa cancellation procedures to avoid fines.
Ensure that your final settlement reflects that the employer has borne the visa costs.
In free zones, some employers may include clauses for visa cost reimbursement—always check your contract.
Misunderstanding visa obligations can lead to fines or future visa issues.
Is leave salary basic or full salary in the UAE?
Leave salary generally includes basic salary plus contractual allowances, depending on your employment contract.
Guidelines:
Some companies pay only the basic salary; others include housing, transport, or other allowances.
Clarify in your contract which components are included for leave encashment or leave pay during annual leave.
Correct understanding ensures accurate calculation for both monthly leave pay and final settlement.
Example:
Basic: AED 10,000
Housing allowance: AED 2,000
Transport allowance: AED 1,000
Total salary for leave calculation: AED 13,000
Unused leave: 10 days
Leave salary: 13,000 ÷ 30 = 433.33 × 10 = AED 4,333.33
How is final settlement calculated in UAE?
Final settlement is the comprehensive payment owed to an employee when leaving a job. It includes:
Gratuity (if eligible) – calculated on basic salary as per years of service.
Unused leave encashment – calculated using (Basic Salary + Allowances ÷ 30) × Unused Leave Days.
Outstanding bonuses – including annual performance or contractual bonuses.
Other contractual benefits – e.g., airfare allowance, end-of-service benefits.
Deductions – loans, fines, overpayments, or notice period penalties if contract obligations were not fulfilled.
Example:
Basic salary: AED 10,000
Allowances: AED 3,000
Unused leave: 10 days → 13,000 ÷ 30 × 10 = AED 4,333.33
Gratuity (4 years) → 10,000 ÷ 30 × 21 × 4 = AED 27,999.72
Final settlement: 4,333.33 + 27,999.72 = AED 32,333.05 (excluding bonuses or deductions)
Tips:
Always request a breakdown from HR.
Keep resignation and leave approval documentation.
Verify calculations against contract terms and UAE Labour Law.
Can I cancel my employment visa after 1 year in the UAE?
Yes, employment visas can be canceled after one year or at any point during employment, provided proper procedures are followed.
Key points:
Visa cancellation is handled by the employer or during transfer to a new employer.
Ensure GDRFA (General Directorate of Residency and Foreigners Affairs) procedures are correctly completed to avoid fines or illegal status.
After cancellation, you can either exit the UAE or transfer to a new employer.
Practical steps:
Submit resignation and notice as per your contract.
Confirm final settlement including gratuity and leave encashment.
Coordinate with HR to complete visa cancellation.
Retain copies of all documentation to prevent issues with future employment or residency.
Can I join another company after resignation in the UAE?
Yes, after resigning, you can join another company, but there are important steps to ensure a smooth transition:
Serve your notice period – usually 30 days to 3 months as per your contract.
Complete final settlement – ensure gratuity, leave encashment, bonuses, and other dues are cleared.
Cancel your current employment visa – handled by the current employer or free zone authority.
Secure a new work visa – from your new employer, ensuring no gap in legal employment status.
Practical tips:
Always submit a written resignation and retain acknowledgment.
Coordinate with HR to prevent delays in visa cancellation.
Avoid immediate transitions without proper documentation; illegal status can lead to fines, penalties, or restrictions on future employment.
Legal reference:
UAE Labour Law, Federal Law No. 8 of 1980, protects your rights during job transfers if proper notice and settlement procedures are followed.
Can we do two jobs at a time in the UAE?
Generally, holding two jobs simultaneously in the UAE is restricted, except in specific cases where you obtain approval from the Ministry of Human Resources and Emiratisation (MOHRE).
Key points:
Your primary employment contract often prohibits working for a competitor or second employer without written approval.
Free zone companies may allow second jobs with prior consent.
Unauthorized dual employment can result in fines, visa cancellation, or legal action.
Practical guidance:
Always check your contract clauses.
Obtain official approval if you plan to take a second job.
Keep clear documentation to avoid labor disputes.
How is leave salary calculated?
Leave salary is the pay you receive for taking annual leave or the cash equivalent if leave is not taken.
Formula (linear form):
Leave Salary = (Basic Salary + Allowances ÷ 30) × Number of Leave Days
Example:
Basic + allowances: AED 15,000
Leave days: 12
Daily pay: 15,000 ÷ 30 = 500
Leave salary: 500 × 12 = AED 6,000
Practical tips:
Confirm which allowances are included.
Ensure leave is properly approved by HR to avoid disputes.
Accurate tracking ensures correct payment upon resignation or leave encashment.
How to calculate leave salary in UAE calculator?
Most UAE companies or online tools calculate leave salary using:
Step 1: Identify basic salary and applicable allowances.
Step 2: Divide the total by 30 to get the daily rate.
Step 3: Multiply daily rate by the number of leave days.
Example:
Basic salary: AED 10,000
Housing allowance: AED 2,000
Leave days: 8
Total salary = 12,000
Daily pay = 12,000 ÷ 30 = 400
Leave salary = 400 × 8 = AED 3,200
Tips:
Use company-approved calculators or manual verification.
Include this calculation when negotiating final settlement to ensure full payment.
Who is eligible for leave salary?
All employees in the UAE are eligible for leave salary after completing probation period (usually 6 months). Eligibility includes:
Full-time and part-time employees with valid contracts
Employees who resign, complete contract, or are terminated
Employees with accrued but unused annual leave
Practical guidance:
Track leave accrual from the start of employment.
Ensure approvals are documented.
Include leave salary in the final settlement along with gratuity, pending bonuses, and other entitlements.
Legal reference:
UAE Labour Law, Federal Law No. 8 of 1980, guarantees leave pay as part of end-of-service rights.
Can I resign immediately in the UAE?
Immediate resignation is possible but carries risks if not handled correctly. Most contracts require notice periods, usually 30 days to 3 months. Leaving immediately without serving notice can result in:
Salary deductions equal to unserved notice days
Delayed or reduced final settlement
Visa and residency complications
Practical guidance:
Submit resignation in writing and negotiate notice period with HR if urgent.
Ensure all leave encashment, gratuity, and pending payments are included in your final settlement.
Retain acknowledgment of resignation to prevent disputes.
Legal reference:
UAE Labour Law allows employers to deduct salary for unserved notice periods but does not permit arbitrary deductions beyond the notice period owed.
Is salary calculated for 30 days or 31 days in the UAE?
Salary calculations in the UAE always assume 30 days per month, regardless of the actual number of days in the calendar month.
Why this matters:
Ensures uniformity for leave salary, final settlement, and daily pay calculations.
Prevents disputes over months with 28 or 31 days.
Example:
Monthly salary: AED 15,000
Daily rate: 15,000 ÷ 30 = 500 per day
Paid leave or leave encashment uses this daily rate, not the actual calendar days.
What is the maximum annual leave in UAE?
The UAE Labour Law mandates 30 calendar days of annual leave per year for full-time employees.
Key points:
Leave accrues after completing one year of continuous service.
Employees cannot waive leave; unused leave can be encashed at resignation.
Probation employees may have reduced or no leave entitlement depending on their contract.
Practical guidance:
Track leave accrual monthly to avoid shortfall at resignation.
Ensure leave approvals are properly documented to claim encashment.
Include leave salary in final settlement calculations.
Are sick leaves paid?
Yes, sick leaves are paid according to UAE Labour Law once an employee completes 90 days of service:
15 days at full pay
30 days at half pay
Any additional days are unpaid
Important points:
A valid medical certificate is required.
Sick leave is not cumulative year over year.
Employers cannot deduct salary for properly documented sick leave.
Example:
Employee falls sick for 10 days in a year. The first 10 days are fully paid.
If sick leave exceeds 45 days in a year, the excess is unpaid.
How is annual leave paid?
Annual leave is paid as salary plus contractual allowances during the leave period.
Calculation formula (linear form):
Annual Leave Pay = (Basic Salary + Allowances ÷ 30) × Number of Leave Days
Example:
Monthly salary: AED 12,000 (basic + allowances)
Annual leave: 15 days
Daily rate: 12,000 ÷ 30 = 400
Leave pay: 400 × 15 = AED 6,000
Additional guidance:
Ensure leave approval is documented.
Verify that all contractual allowances are included in the calculation.
For unused leave at resignation, include this in the final settlement along with gratuity and other benefits.