Detailed Guide on how to calculate leave salary in UAE
We believe you made the best decision ever if you picked to work in the UAE nowadays. Nonetheless, working in the Emirates involves focusing on several financial aspects. For instance, it is a primary concern to learn how to calculate a leave salary in the UAE today.
In this article, you will understand everything regarding a leave salary calculation in Dubai and elsewhere in the UAE. Indeed, it includes knowing about the different types of leaves in the Emirates and more. So, do you see your annual leave approaching fast? Let us discuss:
What are the different types of leaves?
Working in the Middle East has numerous advantages, even if your job is in an HR Management firm. For instance, you can earn an excellent income while living in a safe location. However, how do Middle Eastern companies manage leaves?
In this sense, your primary focus should be on learning how to calculate a leave salary in the UAE. Nevertheless, such a calculation involves understanding the different types of leaves in the Emirates. That is why it will be our first assessment in the article.
On the other hand, it is worth mentioning that we will address the most common leaves in the UAE today. Hence, feel free to look for additional leaves that your payroll outsourcing company may offer. Indeed, they must also include a leave salary calculation in UAE online.
So, let us dig into the different types of leaves available in the UAE today:
Regulations such as the Labour Law of Bahrain establish several types of leaves worldwide. However, all of them have one in common: annual leave. Let us address annual leaves before showing you how to calculate a leave salary in the UAE today.
According to the labor law of the UAE, employees with at least six months of work can enjoy annual leave. It can last two days per month if your length of employment is between six months and one year. But what if you completed your year of service?
In this sense, one year of employment will give you thirty days of fully paid leave. Therefore, you should take the time to learn how to perform your annual leave salary calculation if your hiring anniversary is close. Above all, it will allow you to plan your trip to Egypt!
More importantly, learning how to calculate an annual leave salary in the UAE does not depend only on the UAE labor law. Indeed, your employment contract could include clauses about it. So, remember to review them before signing such a contract.
Your annual leave will allow you to rest from work after your leave salary calculation in Dubai. Nonetheless, your expert friend in withholding tax in Saudi Arabia will make you remember that your health also matters. But what does he mean by it?
Above all, he meant that you may need days to manage your health due to an injury or sickness. Fortunately, UAE regulations contemplate sick leave for employees in the country. Let us assess what these laws say to allow you to prepare for this scenario.
First, your immigration services company in the UAE will allow you sick leave if your length of service is more than three months. If you comply, you can enjoy up to 90 days of sick leave per year. However, you need to have evidence regarding your illness.
On the other hand, it is worth mentioning that sick leave involves a different method of leave salary calculation in the UAE. You will learn the primary differences in detail later in the article.
Sickness could lead you to learn how to calculate a leave salary in the UAE nowadays. Nevertheless, not every leave relates to problems with your health or a working accident. After all, there is one you will need when your beautiful family is growing: a maternity leave.
As the people from relocation services firms can explain, UAE laws allow new mothers to enjoy maternity leave if their length of employment is one year. Assuredly, they can also enjoy it if their length of service is below one year, but the leave salary calculation in UAE will differ.
In this sense, mothers can enjoy 45 fully paid days of maternity leave. Besides, they can extend it up to 100 days if childcare demands it, but the remaining 55 days will be without pay. However, what is the most common scenario for maternity leave in the UAE?
Indeed, mothers in the UAE often enjoy their 45 days and use two half-hour breaks during the day. UAE authorities allow these breaks in the country for female workers to take care of their children.
We hope you do not face a scenario where you need unemployment insurance in the UAE. On the contrary, we intend to teach you how to calculate an annual leave salary in the UAE. It will be an excellent knowledge for times such as the holiday leaves in the Emirates.
In this sense, the UAE government established fourteen public holidays, including Eid al-Fitr, Commemoration Day, and Al-Hijra (Islamic New Year). Furthermore, the UAE Labor Law dictates that employees can enjoy free time during these days and one day per week to rest.
More importantly, companies in the UAE must consider holiday leaves as fully paid. Besides, they must compensate their staff if they work during those days. Feel free to check on EOR-pedia if any other country has these outstanding advantages.
Here is where we finish the list of the different types of leaves in the UAE. Above all, it gives you a sense of how you can plan your free time in the Emirates. Now comes the best part: How is leave salary calculated in the UAE?
How is leave salary calculated in the UAE?
Knowing how to calculate a leave salary in the UAE is not an exact science. After all, it is a process that may vary for every employee and every company, including the ones with remote workers. So, how can you use a leave salary calculator in UAE online without mistakes?
Fortunately, we will show you everything you need about an annual leave salary calculation and more. First, it is worth mentioning that a leave salary calculation in the UAE depends on two primary factors. As you may know by now, one is the type of leave.
According to UAE laws and regulations, the remaining factor is the motive of the leave. In other words, is your leave required by law? Or is it related to events such as resignation or termination? Indeed, your leave salary calculation in Dubai will vary in every case.
So, you want to learn how to calculate a leave salary in the UAE. Consequently, you meet with your friend in the Ministry of Labour of the UAE to understand it. Above all, you ask him: Is there any leave calculation formula?
Is there any leave calculation formula?
The answer to this question is simple: You will not find a leave salary calculator in UAE online that works with a single formula. On the contrary, you will find several methodologies to determine your leave salary in your Professional Employment Organization. So, how can we do this?
Regarding your annual leave salary calculation, your company must give you 30 days of your regular earnings. It will depend primarily on your current salary and other aspects stated in your employment contract. Indeed, it looks like a simple calculation that everyone can do.
However, learning how to calculate a leave salary in the UAE could be different if your case involves a resignation or termination from your current job. Consequently, we will focus on these cases to allow you to prepare for every job change in your career in the UAE.
In addition, we will also assess your leave salary calculation in the UAE regarding your type of employment. It is one of the main differences between limited and unlimited contracts in the UAE today.
Leave salary calculation in the UAE in case of resignation
The Middle East is the best place you can be to boost your professional career today. Therefore, you should seek employment in other Middle Eastern countries like Bahrain if you decide to resign from your job in the UAE. But how can you calculate your leave salary for this case?
Above all, it is worth mentioning that your leave salary calculation in the UAE in case of resignation depends primarily on the related paragraphs in your employment contract. In other words, you must define your gratuity pay when you start working in the company.
So, how is leave salary calculated in the UAE regarding resignation? It is a different process for every company. However, your resignation’s financial benefits will be subject to your years of work in the company.
Leave salary calculation in the UAE in case of termination
You arrived in the UAE after knowing aspects such as the minimum wage in the country nowadays. Unfortunately, you experienced awful days during your job, and your employer decided to terminate your contract. So, what happens now?
Above all, it is the right time to learn how to calculate a leave salary in the UAE regarding termination. First, it is essential to understand that this calculation depends on your length of employment. For instance, you will not get gratuity pay with less than one year of service.
On the contrary, your employer will give you 21 days of your basic salary if your length of employment is between one and five years. Moreover, it can increase to 30 days if your service surpasses five years.
In summary, you will perform your leave salary calculation in Dubai differently depending on your case. However, your friend from Lebanon will tell you that it also depends on the type of your employment contract. But how does it work?
Workers on a limited contract
Working on a limited contract with a company in the UAE means your employment is time-limited. In other words, your work as a contractor will end when the contract’s ending date arrives on your calendar. But how is leave salary calculated in the UAE for this scenario?
Workers on a limited contract can calculate their leave salary according to the time they worked for the company. Indeed, their gratuity leave will follow the same rules that a leave salary calculation in the UAE for termination. Hence, you will find it in the subject above.
In summary, you can get 30 days of pay if you worked as an expert in UAE corporate tax for more than five years on a limited contract. Nevertheless, do these same rules apply to workers in other employment relationships in the UAE today?
Workers on an unlimited contract
Understanding how to calculate a leave salary in the UAE will vary if you build an excellent relationship with your employer. After all, he will place you on an unlimited contract after seeing your work’s quality and efficiency. So, how can you calculate it for this case?
First, it is worth mentioning that the rules for a leave salary calculation in the UAE regarding termination also apply to terminated unlimited contracts. However, what if you resign from your job and cancel your residence visa in the UAE?
In this sense, your gratuity pay will depend on your length of employment. For instance, workers with a service of between one and three years will receive one-third of 21 days of basic salary. It can increase to 21 days if it is more than five years.
Lastly, remember that knowing how to calculate a leave salary in the UAE is essential for your professional career in the Middle East. Luckily, it is a matter where EOR Middle East can provide you with the best assistance in the region.