Leave Salary Calculator 2025: Your Guide to Leave Salary Calculation in UAE

Namaste dosto! If you’re working in the UAE, understanding how your leave salary is calculated is super important. Whether you’re planning a vacation, taking time off, or leaving your job, knowing your leave salary helps you manage your finances better. In 2025, the UAE Labour Law (Federal Decree-Law No. 33 of 2021) sets clear rules for annual leave and how your pay is calculated during it. In this guide, I’ll explain how to calculate your leave salary, share simple steps, and provide tips to ensure you get what you’re entitled to. Let’s dive in!

Why Calculating Your Leave Salary Matters

Before we get into the details, let’s talk about why understanding your leave salary is a big deal. Your leave salary is the money you get while you’re on paid annual leave, ensuring you don’t lose income during your time off. Checking this helps you:

• Plan Your Finances: Know exactly how much you’ll receive to budget for your vacation or personal time.

• Avoid Disputes: Ensure your employer pays you correctly as per UAE Labour Law.

• Understand Your Rights: Be aware of what you’re entitled to, especially if you resign or get terminated.

• Maximize Benefits: Make informed decisions about carrying over or cashing out unused leave.

Now, let’s break down how leave salary works in the UAE and how you can calculate it.

UAE Leave Entitlements in 2025

Under the UAE Labour Law, employees are entitled to paid annual leave based on their length of service. Here’s a quick overview:

Service Duration	Annual Leave Entitlement
Less than 6 months	No annual leave
6 months to 1 year	2 days per month
1 year or more	30 calendar days per year

• Part-Time Employees: Leave is prorated based on working hours. For example, if you work 50% of full-time hours, you get 15 days of leave.

• Unused Leave: You can carry over unused leave to the next year with employer consent, but it must be used within two years. Upon termination, unused leave is paid out based on your basic salary only.

How to Calculate Your Leave Salary in UAE

The leave salary calculation depends on your basic salary, and in some cases, allowances like housing or transport, if specified in your contract. Below, I’ll share the formulas and steps to calculate it easily.

Basic Formula for Leave Salary

For most employees, leave salary is calculated using only the basic salary unless your contract includes allowances.

Formula:
Leave Salary = (Basic Salary ÷ 30) × Number of Leave Days

If your contract includes allowances (like housing or transport), the formula becomes:
Leave Salary = [(Basic Salary + Eligible Allowances) ÷ 30] × Number of Leave Days

Example Calculation

Let’s say Ms. Priya earns a basic salary of AED 10,000 per month and takes 20 days of annual leave. Her contract doesn’t include allowances for leave pay.

Step-by-Step Calculation

Step	Description	Calculation
1	Find daily basic salary	AED 10,000 ÷ 30 = AED 333.33
2	Multiply by leave days	AED 333.33 × 20 = AED 6,666.60

So, Ms. Priya’s leave salary for 20 days is AED 6,666.60.

If her contract includes a housing allowance of AED 2,000, the calculation changes:
Daily Salary = (AED 10,000 + AED 2,000) ÷ 30 = AED 400
Leave Salary = AED 400 × 20 = AED 8,000

Steps to Calculate Your Leave Salary

Here’s how you can calculate your leave salary manually or using online tools:

Steps to Calculate Leave Salary

Step	Description
1	Check your employment contract to confirm your basic salary and if allowances are included for leave pay.
2	Determine your annual leave entitlement (e.g., 30 days for 1+ years of service).
3	Calculate your daily salary: Divide your monthly basic salary (or basic + allowances, if applicable) by 30.
4	Multiply your daily salary by the number of leave days you’re taking.
5	Verify with your HR team to ensure the calculation matches company policy.

Tip: Use online leave salary calculators like those on uaefresher.com or zimyo.com for quick results. Just enter your salary and leave days to get an instant breakdown.

Special Cases for Leave Salary

• Unused Leave at Termination: If you resign or are terminated, you’re entitled to cash for unused leave, calculated using only your basic salary. For example, if you have 10 days of unused leave and a basic salary of AED 9,000, you get: (AED 9,000 ÷ 30) × 10 = AED 3,000.

• Working During Leave: If your employer asks you to work during your leave, you must be paid separately for those days, based on your basic salary.

• Part-Time Workers: Leave salary is prorated. If you work half-time, your 30-day entitlement becomes 15 days, and the salary is calculated based on your part-time rate.

Tips to Ensure Accurate Leave Salary

• Review Your Contract: Confirm whether allowances are included in your leave salary.

• Track Leave Balance: Keep a record of your used and unused leave days to avoid disputes.

• Use Official Calculators: Websites like uaefresher.com or payrollmiddleeast.com offer reliable tools.

• Talk to HR: Double-check calculations with your employer to ensure compliance with UAE Labour Law.

• Plan Leave Early: Notify your employer at least one month in advance to ensure timely payment before your leave starts.

Common Questions About Leave Salary in UAE

1. Is leave salary based on basic or total salary?
By default, it’s based on your basic salary unless your contract specifies allowances like housing or transport.

2. When is leave salary paid?
It must be paid before your leave begins, as per UAE Labour Law.

3. Can I cash out unused leave?
Yes, you can carry over unused leave (with employer consent) or get cash for it upon termination, based on your basic salary.

4. What if I work during my leave?
You’re entitled to extra pay for those days, calculated using your basic salary.

5. Do part-time employees get leave salary?
Yes, it’s prorated based on your working hours compared to a full-time employee.

Final Thoughts

Namaste dosto! Calculating your leave salary in the UAE for 2025 is straightforward once you know the rules. Whether you’re taking a well-deserved break or planning for unused leave, understanding how your pay is calculated ensures you get what you deserve. Use the simple formula, check your contract, and leverage online calculators for quick results. If you’re ever unsure, talk to your HR team or refer to the UAE Labour Law for clarity. For more tools and information, check out websites like payrollmiddleeast.com or icp.gov.ae. Stay informed and enjoy your leave without financial worries!