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Leave salary calculation in case of changing salary

Could you please advise the leave salary calculation for the below scenario:

- Leave Due 02/04/2020

- Leave availing from 07/05/2021

- Salary till 31/12/2020: AED 4,500

- Increment Received from 01/01/2021 and new salary amount AED 5,800

Hussain Lootah & Associates
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17 Mar 2021, 10:01

Dear questioner,

Thanks for contacting me!

Article 75 lays down the accumulation of leaves based on the time period of work:

A worker shall, for each year of service, be entitled to an annual leave of not less than:

1. Two days a month, where the worker’s period of service is more than six months but less than one year.

2. 30 days a year, where the worker’s period of service is more than one year.

Where a worker's service is terminated, he shall be entitled to annual leave in respect of fractions of the last year.

Further, leave salary is calculated on the basis of the last salary you received from your employer through WPS. [Article 79]

Hope the above explanation is sufficient to calculate your leave salary benefits.

Regards,

Rajasree Ravivarma

21 Mar 2021, 04:42

Thank you for your response!

However, I am looking to understand whether the leave salary amount has to be calculated on a pro-rata basis or the actual as on date.

The reason behind this question is that the employee has had an increase in salary from 01.01.2021.

His initial salary was 4500 and increased to 5800 effective this year. So please advise me here!

21 Mar 2021, 05:01

If you are releasing the old leave salary dues now, the same shall be calculated on the basis of his latest salary.

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