Leave Salary – What are you eligible for?

Leave salary – Basis of Calculation

Every employee under UAE Labour law is entitled to Annual Leave. Read here about Annual Leave. Many companies and employers, in violation of UAE Labour Law, pay only Basic salary or no salary at all during annual leave. UAE Labour Law clearly states about Leave Salary.

What are you eligible for? ARTICLE 78

The employee shall receive his basic pay in addition to housing allowance, if any for the annual leave days. However if the exigencies of work necessitate that the employee works during his annual leave in whole or in part, and the period of leave during which he has worked, has not been carried forward to the next year, the employer ought to pay him his wage in addition to cash in lieu of leave for his working days based on his basic pay.

Note: Basic salary and Housing allowance are to be paid during annual leave. If employee is made to work during the annual leave, he should be paid cash (on basis of basic salary) in lieu in addition to the leave salary.

What if I have not availed the annual leaves? ARTICLE 79

The employee is entitled to receive cash in lieu of annual leave days not availed by him, if he was dismissed or if he left the service, after the period of notice stipulated by law. Cash in lieu of leave is calculated on the bases of pay received by the employee at the time of maturity of such leave.

Note: An employee is eligible for cash in lieu of leave not utilised.

What if I resign and I have annual leaves pending? ARTICLE 80

Remuneration due to an employee plus that of the approved leave under this law shall be paid in full by the employer to the employee before the latter’s departure on annual leave.

Note: Leave salary should be paid prior to proceeding on annual leave.

What if I work during holidays? ARTICLE 81

If exigencies of work necessitate that the employee work on holidays or rest days against which he receives full or partial pay he shall be compensated in lieu thereof with increase in pay by 50% of his wage, but if he has not been compensated for the same with a leave, the employer shall pay him an increase to his basic wage equivalent to 150% of the days of work.

Note: If the employee has to work during holidays, he must be compensated as above.

I hope this clarifies many things. As an employee, you must be aware of your rights under UAE Labour Law. For this reason, I urge you to download copy of UAE Labour Law and read it.

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Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
  • Hello Deepak Bhai,
    Good Day
    I was working as unlimited contract and my salary was 5500 . my employer sudden cancel my visa in two month. please can you guide me should i have band?? if yes than how can i remove or get another job??

  • what is the labour law for Mechanical Engineer ???? just i have received an offer letter from company they mentioned in it 2 years bond as i m fresher over in uae

  • sir
    i m doing job in uae
    i want to start my own work
    so plz help me what i can do
    and tel me about law

  • I have been working in a private clinic in dubai for one year and 9 months ( actually on limited contract of 2 years). Now, I have got new job in government sector. I have given my resignation and completed my notice period of 1 month. So, am I entitled to encashment of my 30 days unavailed annual leave for this year (as I am breaking my contract) ?? And will they encash only for the fraction of 9 months which I worked??
    NB: I availed 30 days annual leave for the first year.

    PLEASE HELP!!!

  • Hi Deepak,

    I’ve been employed at the same company for just under 4yrs, i had a limited contract that expired and haven’t signed or be offered a new contract but have continued working there. If I resigned am I due gratuity or would i have to compensate my employer?

  • Hi sir iam working in Abu Dhabi since 9 months iam a graduated person with all attested certification … My salary is too low sir . Company terminate me … Can I claim my 3 month settlement …. Plz reply me asap it’s urgent sir…

  • Hi Deepak,

    I am an international teacher in Abu Dhabi and have unfortunately made the mistake of booking travel on the 22nd of Sept (what was initially meant to be mount arafat day). Now it seems EID has been moved a day forward, also bring arafat day, a day forward…My employer has stated that if I was to take that Tuesday, I could be docked 5 days pay (Tues, Wed, Thurs, Fri and Sat). I can understand not being paid for Tuesday but 5 days just seems unbelievable. After having read article 89 of the labour law, it doesn’t seem that this would be legal. Please advise…Thanks very much.

  • plz tell me some information… i want to go uae on visit visa of 30 days…when i reached then i well convert visit visa to residence visa …how is it posible???and how many working days requered in this process..??? i will not come back only take in out process from dubai aierport plz help me

    • Saeed,
      You may be able to convert visit visa to residence visa.
      I can not tell the length of the process.

    • ARTICLE 79

      The employee is entitled to receive cash in lieu of annual leave days not availed by him, if he was dismissed or if he left the service, after the
      period of notice stipulated by law. Cash in lieu of leave is calculated on the bases of pay received by the employee at the time of maturity of such
      leave.

      Note: An employee is eligible for cash in lieu of leave not utilised.

      I would like to clarify sir, in case an employee resigned or terminated by the management and still he have remaining annual leave, on what basis will his leave salary be calculated, is it based from the whole salary or basic salary only?

  • Hello Sir,
    If one employee completes two years of services and have not availed 30 days annual leave after completing her one year (at that time her salary was 2500 dhs). Now she is going on two months leave but what will be method to calculate her salary for two months annual leave. her current salary is 3000 dhs.

    • Hassan,
      Labour Law is not very clear in this situation.
      However, I feel that the latest salary should be calculated for leave salary.

  • Hi Deepak,

    I do appreciate your valuable advices and dedication..sir i would like to clear that i am working for one of construction company since June 2013 i have finished my first visa and already renewed this year in june..but now due to some family issues i resigned and passing my notice period that will be completed on 13 of November 2015….
    my question is i have been told that you may avail annual leave of 45 days once after 2 years only…that i have already availed this year but i was paid only 1800 AED basic salary only…is that according to UAE law….???…
    2nd i m doing job as sales Executive as staff according to UAE labor law my leave should be 30 days each years but my company gave 45 days now in the of settlement can i claim my remaining du annual leave salary? ??

    Plz help me..

  • Hai depak.i continewed workig my company now 34 month finish .then I return in after vacation now 10 month finish .then this month I am going to hom on 40 days. Any leav alavance in this leav time?

  • Hello Deepak,

    2015 April onwards iam working in abudhabhi school. 2016 January 10 i want resign from thr. So can i get my settlement. Please tell me. Now iam confused.

  • I am working in unlimited contract from october 2014 and due to my personal reason I have not taken annual leave of 30 days. Am I eligible in getting leave encashment at the time of resigning or terminating.

  • DEAR
    HOW IS THE LEAVE SALRY IS CALCULATED FOR THE CONSEQUETED YEAR FROM THE DATE OF REJOINING OR ANY OTHER FIXED DURATION

  • Dear sir i have completed 2 years in my company my basic salary is 1800 AED so how much I will get my leave salary please must Reply me Thanks.

  • my question is under visit visa/other sponsor visa one employee worked with our company around 8 month after that company gave him company visa is he eligible for whole year Leave salary or after company visa stamping date only

  • Dear sir,
    I am working here in abu dhabi with a limited contact and it will be over this coming 2nd of July 2016. I dint avail my annual leave nor I received my leave salary. I don’t want to continue here anymore and I want to finish this contract.
    So can I take my graduity of just 21 days or 42 days because I did not get any graduity after one year .
    My leave salary Will be just the basic salary or or full salary and they will provide me one leave salary or two leave salary .?
    Please need help and immediately kind response
    Thanks

  • sir,i am working in a supermarket [private sector], my salary as per contract is 1000AED but I received my salary as 1750 AED[1000 aed through Bank +750 aed by cash]working 7 am to night 11pm with out any break.[most of the days]Minimum or average working hours 15 to 16 hrs Fridays no holiday but work starts from 2pm to 11pm.
    Even public holidays I don’t have holidays. I already completed 22 months service under this visa.

    My question is shall I ask for gratuity of my service and leave salary. Do i have eligibility for leave salary and gratuity from this job. Plus my flight tickets.
    [from India I purchased my air tickets from my cash, not refunded yet]
    No accommodation No food and No travel allowance.
    But I am planning to cancelled this visa on June or July or till end of my contract.

    if i am eligible pls show the gratuity calculations also .

    pls give a clear and crystal answer from your side through email.
    awaiting ur reply

    thank u

  • If an employee wishes not to take his annual leave for 1 year and the following year he takes a leave then how should his leave salary be calculated because now the employee is claiming for 2 years leave salary though the company never asked him to refrain from going on his leave. What is the correct practise to follow?

  • Sir,
    I’m working with my company almost 6 years now..first 2 years I get my annual leave salary after that last 3 years I didn’t get any annual leave and salary as well. When I ask for for my last 3 years leave salary than they reply to me it was my mistake why didn’t take my leave salary.if u guys r not giving me leave salary then I can take.
    So my question is how can I get my last 3 years annual leave salary.can I get my annual leave salary or not..?
    Waiting for ur reply sir

  • Dear Deepak,

    If an employee is entitled for transportation, food and other allowance in monthly salary, should the employee be paid all of this during his annual leave also? Or Will it be just the basic with HRA?

    Kindly advise.

    Regards and Thanks,
    Nisha

  • Dear Deepak,

    The law said basic salary+housing allowance= annual leave pay. What if the employee is claiming the annual leave benefit but will be working during his supposedly leave month.

    What is the computation of his total pay? should the housing allowance be remove and he will receive only the basic salary+ the salary for the month since he will get the housing allowance and transportation on his paid monthly salary?

  • Dear
    I am working in laundry as Accountant my cottage is for 800 basic and other allowance 1000 means total 1800 but I am getting my salary by bank 5000 each month that agreement made before seven year and remain same Nother changed notify me by email that what is the base of my leave calculation

  • Hello Deepak,

    Is any employee eligible for Leave Salary ? if he resigns before 6 months (including notice period) and after the probation period (3 months).

    Kindly advise.

  • As per Article (79), “Cash in lieu of leave is calculated on the bases of pay received by the employee at the
    time of maturity of such leave.”

    If an employee resigns in 20th month of the employment(that is before completing a second year) is he entitled to get annual leave for the months completed in second year? (I have completed 8 months of the second year so should I get annual leave applicable for these 8 days?)

  • My employeer did not give the right amount on my annual leave salary and also my graduity…please i want some advice how to take my leave salary and my graduity..

  • i was working with 1 compny last 4years
    i have an offer letter another compny .
    butt my first compny not clearing my dues they cancel my visa and now i am over date fine start..
    help me what should i to do….

  • I am working since last one and half year. now they are asking resignation from me. If i gave resignation whether i am eligible for one and half Leave salary please guide me sir

  • hii sir

    i am working in abu dhabi. i have limited contract.i completed one year. last month i give my resignation. company deduct my 45 days salary . my basic salary is 1000 and allowances is 2000 , total i am getting 3000 aed. so he deducted 4500 and also he told me that you are responsible for your ticket. is it right ?? please suggest me as soon as possible.

    • No, He is wrong
      You could ask for returning the same amount which you paid and you are eligible for leave pay and annual ticket.
      Regards
      Binoop

  • hello sir,

    I am on my husbands visa working as a teacher in a CBSE school from june 2015. I gave resignation in Jan and gave the school 3 months notice regarding it. My last working date was 20th March 2017, Now after working for 22 months my school says I am not liable for gratuity as I am leaving 2 months before. Please help me

    Am I liable to get gratuity and the leave salary.

    • Angeles,
      There is no such rule. Your school has to pay gratuity as per labour law.
      What type of contract are you under, Limited contract or Unlimited contract?

  • Hi Deepak,

    I am on Limited contract and will be valid from 4th Oct 2015-3rd Oct 2017.I already took my last annual leave on 23rd Dec,2016-23rd Jan ,2017.I would like to take my this years annual leave before the completion of my contract;That is probably by Aug 1-30.

    Just want to know whether I am eligible for the same as per UAE labour law.

  • Hi, I am taking unpaid leave for 3 months from my company here in Dubai (DIFC) and the question I have is if my holiday entitlement will continue to accrue during the unpaid leave

  • Hi! My son file a 2 months vacation leave after 2 years but sad to say the company give him only one month vacation pay and ticket and the other one month has no pay. Is it under the UAE labour law? Thanks

  • i just want to ask leave salary amount will be calcualte on current salary or last year salary if i join in mid of the year.

      • hi
        this is Sreenu m working in saif zone company i need to know what is
        my leave salary calculation only pay in basic or full salary

        Basil : 800
        Special Allowance : 200
        Food Allowance : 350
        Incentive 100

        Total Salary 1450 per month

  • hi this is Sreenu m working in saif zone company i need to know what is my leave salary calculation only pay in basic or full salary

    Basil : 800
    Special Allowance : 200
    Food Allowance : 350
    Incentive 100

    Total Salary 1450 per month

  • Hi Deepak,
    What if the company hadn’t paid the HRA along with the Leave salary and denying the same? also can we do something on the previous year HRA also?

  • Hello,just want to ask if i should also receive my transportation allowance worth 500(Not including my basic and home allowance)if i go for 30 days annual leave?Thank you

  • Hi Mr. Deepak,
    Pls enlighten me the below lines, these were the caption from your articles pertaining to Annual Leave salary.

    1st caption: “What are you eligible for? ARTICLE 78
    The employee shall receive his basic pay in addition to housing allowance, if any for the annual leave days.”

    2nd caption: “Is salary paid in full during annual leave?
    As per the Article (78)- An employee shall be paid his basic wage plus the housing allowance, if applicable, and any other allowances which he receives in the normal working month.

    Question: The 2 caption differs in other allowances, which matter to us. Is this a matter of choice of the company to adopt the above law, say other allowances (aside from housing allow,) to be included in annual leave pay to employees??

    As i believe the 1st caption mention only the basic plus housing allowance, and did not include the other allowances. Am i right with my understanding? pls clarify.

    Thanks, Oscar

  • I have 30 days earned leave and want to encash it. I will be paid salary for the month as I am continuing my work. How will my leave encashment be calculated. Only on Basic Pay or Basic + Accommodation.

    The company follow the policy of carry forward of leave till encashed.