Calculating Your Leave Salary in UAE for Unlimited Contract Labour Law
Employees in the UAE are entitled to leave salary as per the labour law. This is applicable to all employees under the unlimited labour contract. The leave salary calculation in UAE is an important aspect of an employee’s compensation package, and being aware of how it is calculated can help you plan your finances better.
What is Leave Salary?
Leave salary is the amount of money that an employee receives while taking time off from work. This is paid for the number of days that the employee is entitled to take as leave.
According to the UAE labor law, the number of days of paid leave for employees working under an unlimited contract is as follows:
• 30 days of annual leave for employees who have completed one year of service
• 2 days of leave for each month for employees who have completed six months but less than one year of service.
How to Calculate Leave Salary?
The leave salary calculation in UAE is based on the basic salary of an employee. In addition to the basic salary, allowances such as housing, transport etc. are also taken into account. However, gratuity, bonuses, or overtime payments are not included in the calculations.
Here’s a simple formula to calculate the leave salary for an employee:
Leave Salary = Basic Salary + Allowances / 30 x Days of Leave
For example, if an employee with a monthly basic salary of AED 5,000 is taking 30 days of annual leave, the leave salary calculation in UAE would be:
Leave Salary = 5,000 + 1,500 (housing and transport allowances) / 30 x 30
= AED 6,500
Therefore, the employee’s leave salary for the 30 days of annual leave would be AED 6,500.
Conclusion
Knowing the leave salary calculation in UAE is important for employees to understand their compensation package. It’s essential to discuss your leave entitlement and leave salary with your employer, so you are aware of what you are entitled to. This will help you plan your finances and make informed decisions about taking time off from work. As an employee, you have the right to claim your leave salary and benefits in the UAE so make sure you are aware of your rights and entitlements.
