1. What is UAE Leave Pay Calculation?

The UAE leave pay calculation determines the amount an employee should receive for unused leave days based on their monthly salary. This calculation follows the standard UAE labor law formula that considers 30 days as the monthly basis for pro-rata calculations.

2. How Does the Calculator Work?

The calculator uses the standard UAE formula:

Where:

• \( Salary \) — Monthly salary in AED
• \( Days \) — Number of leave days to be paid out

Explanation: The formula calculates the daily rate by dividing the monthly salary by 30 days, then multiplies by the number of leave days to determine the total pay.

3. Importance of Leave Pay Calculation

Details: Accurate leave pay calculation ensures compliance with UAE labor laws, prevents disputes between employers and employees, and guarantees fair compensation for unused leave entitlement.

4. Using the Calculator

Tips: Enter monthly salary in AED and number of leave days. Both values must be positive numbers. The calculator will compute the leave pay amount based on UAE standard calculation method.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 30 days?
A: UAE labor law typically uses 30 days as the standard monthly basis for pro-rata calculations, regardless of the actual number of days in a month.

Q2: Are there different calculation methods?
A: Some companies may use calendar days or working days, but the 30-day method is the standard approach under UAE labor law for leave pay calculations.

Q3: Does this include allowances?
A: The calculation should be based on the basic salary unless otherwise specified in the employment contract or company policy.

Q4: What about public holidays?
A: Public holidays are typically excluded from leave day calculations unless they fall within the leave period and are considered working days.

Q5: Is this calculation mandatory?
A: Yes, UAE labor law requires employers to pay employees for unused annual leave upon termination or as per company policy.