Leave salary is a critical part of employee rights under the UAE Labor Law. It ensures that employees are fairly compensated during their legally entitled leave periods. In 2025, the UAE will continue to enforce updated regulations that provide clarity on annual leave, sick leave, maternity leave, and other types of statutory leave. Both employers and employees must understand these entitlements to avoid disputes and maintain compliance.
What Is a Leave Salary?
Leave salary refers to the wages an employee receives during their leave period. It is typically calculated based on the employee’s basic salary plus allowances (such as housing, if applicable). According to UAE labor law, employers must pay leave salary before the employee takes their leave.
Key Leave Entitlements Under UAE Law
- Annual Leave – Employees who complete one year of service are entitled to 30 calendar days of paid leave. For employees with less than a year, leave is calculated on a pro-rata basis.
- Sick Leave – After probation, employees are entitled to 90 days per year: the first 15 days with full pay, the next 30 with half pay, and the final 45 unpaid. A medical certificate is required.
- Maternity Leave – Female employees are entitled to 60 days (45 full pay + 15 half pay), with the option of an additional 45 days unpaid.
- Paternity Leave – Male employees can take 5 working days within six months of the child’s birth.
- Hajj Leave – Muslim employees are entitled to up to 30 days of unpaid leave to perform pilgrimage, once during their employment.
Calculation of Leave Salary
- Annual Leave Salary = Basic Salary + Housing Allowance (if any) ÷ 30 × Leave Days.
- Sick Leave Salary = Based on the entitlement category (full, half, or unpaid).
- Unused Leave – Any unused leave at the end of service must be encashed at the same calculation rate.
Employer Obligations
- Pay leave salary before leave begins.
- Maintain proper payroll and leave records for audits.
- Honor end-of-service settlements, including unused leave.
FAQs About Leave Salary
- When should leave salary be paid? → Before the leave starts.
- Can employees encash unused leave? → Yes, at end-of-service.
- Does probation affect leave? → Employees under probation are not entitled to full annual leave benefits.
Conclusion
The Leave Salary Law in the UAE ensures fairness and balance in the workplace. Employers must comply strictly with these rules to avoid penalties, while employees should know their rights to secure fair compensation. By maintaining accurate records and using structured templates, businesses can remain compliant and build trust with their workforce.
📥 Download the free [Leave Salary Law in UAE Template] for entitlements, FAQs, and ready-to-use leave application letters.
