Companies must make payments to their employees following labor laws; especially the leave salary. Sometimes this task is difficult because they do not have the information to make a good salary calculation in UAE.
In this article, we will show you how to calculate your employees’ annual leave salary in the UAE. Additionally, all the key aspects you will need to know in order to perform the process efficiently. Let us see more about this type of salary calculation in the UAE:
1. What is the leave salary in UAE?
The leave salary is a right, which according to the UAE labor law, entitled to an employee who works in a company for one year or more.
1.1 Why is the leave salary important?
This salary is important for employees. This is because it is money that is not only rightfully theirs but they can use it to invest in new projects.
On the other hand, the laws governing leave salary calculators in the UAE today are so precise that companies that perform the process poorly or underpay their employees can face legal problems.
1.2 Is it mandatory to pay the leave salary to the employees?
Yes, the UAE labor law, states that every employee must receive their leave salary if he has worked for six months or more in the company.
2. What should you take into account when doing the leave salary calculation in UAE?
At present, many employees and employers are still confused when it comes to calculating and receiving this compensation. So, here we will answer the most common doubts:
2.1 How to calculate annual leave in UAE?
The UAE Labor Law, which in turn governs the annual leave calculator in UAE; establishes that the payment of leave must be according to the days worked or according to the type of contract existing between both parties.
In this order of ideas, an employer must pay annual leave wage to its employee when:
- The employee worked for one full year at the company. According to the law, he must receive 30 days of vacation per year.
- If the employee worked for more than 6 months, but less than one year with the company; he/she must receive 2 days of vacation for each month he/she has worked.
To do a good annual leave salary calculation in UAE, is important to work hand in hand with people who know all the information regarding work visas, human resources, and payroll calculations, among others; all this in UAE.
2.2 What should the employee receive in leave salary?
The employee must receive, according to the law, the base salary and the housing allowance. However, some companies include more benefits in this payment, but this is at the discretion of each employer.
2.3 Who determines the beginning and duration of an employee’s vacation?
It is only the employer who can make this decision and can even decide if this period will split into two parts if necessary.
If that the employee needs to work during their vacation period, he/she will have to receive vacation compensation for the days they operate. However, under UAE labor laws, an employer cannot force an employee to work for two consecutive years.
2.4 Are public holidays included in an employee’s vacation period in the UAE?
Article 77 of the UAE Labor Law states that if a worker’s vacation period occurs on national holidays, it has to be included as part of his or her leave.
2.5 What should the employer do in case the employee does not show up after the end of the leave period?
Article 89 of the law states that; if a worker does not show up from the next day on which his leave period ends, the employer has the right not to pay him the corresponding salary while he was absent.
3. When must the employee receive this payment?
Article 80 of the UAE workers’ law, states that the employer must pay the leave in full to the worker. This must be before his last departure.
For this, the employer must use an annual leave salary calculator in UAE that allows you to calculate the full wage; plus the days of vacation that corresponds to the employee. Also, employers must be able to perform a leave salary calculation in UAE according to the law.
4. How can we help you to do a good leave salary calculation in UAE?
As a specialized agency, we guarantee you our best service from the hand of professionals in any field you need; so you can retain your employees and increase your workforce, keeping high-level workers in your team.
We have specialized personnel in any of the industries where your business is developed, and we guarantee you a specialized guide to carry out human resources tasks or payroll calculations for your employees.
If you want to know more information about the leave salary calculation or any type of leaves in UAE; do not hesitate to contact us at +971 43 316 688. We are Connect Staff and we are here to help you with everything you need. Please contact our agents at contact@connectstaff.ae for more information.
