Q: Under the new UAE labor law, how is annual leave pay calculated? Based on only basic salary or full monthly salary? A: An end of service benefit at the end of his service, which is calculated on the basis of the Basic Wage as follows. 21 days for each year of the first 5 years of service…

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How is annual leave pay calculated under the new UAE labor law?

Under the new UAE labor law, how is annual leave pay calculated? Based on only basic salary or full monthly salary?

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Eman Al Ali

Eman Al Ali Advocates & Legal Consultants

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10 Feb 2022, 09:39

A foreign Employee or Worker who completes (1) one continuous year of full-time service shall be entitled to an end of service benefit at the end of his service, which is calculated on the basis of the Basic Wage as follows:

a. 21 days for each year of the first 5 years of service.

b. 30 days for any subsequent year of service."

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Eman Al Ali Advocates & Legal Consultant

10 Feb 2022, 10:00

Hi Madam,

Thank you for answering me but my question was about annual leave pay only. Not end of service.

I don’t want to leave my company. Just going on vacation. Is it based on full salary or only basic?

10 Feb 2022, 10:26

After one year of service, the employee is entitled to a full salary before taking his/her Annual Leave.

10 Feb 2022, 10:34

Thank you Madam Eman.

Just to confirm, my salary is 4k (3,000 basic+1,000 allowances).

If I go on leave for 30 days, I will receive 4,000? Not only basic, right?

11 Feb 2022, 10:40

Welcome.

Full wage of your salary dear so you will get 4,000.

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How is annual leave pay calculated under the new UAE labor law?