UAE Annual Leave Pay Uses Basic Salary — Here's the Math
October 23, 2026
Per the official u.ae guidance, annual leave is paid at the employee's basic salary — if an employee's take-home pay normally includes substantial allowances on top of basic salary, their pay during a leave period calculated purely on the leave-pay rule could look different from a normal working month, depending on how the employer structures it.
Skip the math and get your answer instantly:
Open the UAE Annual Leave Calculator →Worked Example
Basic salary: AED 6,000/month. Total salary with allowances: AED 10,000/month. Daily basic wage: 6,000 ÷ 30 = AED 200.
- Pay for 10 days of annual leave, strictly on the basic-only leave-pay rule: 10 × 200 = AED 2,000
How This Is Usually Handled in Practice
Many employers continue paying an employee's full regular salary (including allowances) during a normal annual leave period, since the employee remains employed and simply isn't working those days — the basic-salary-only rule is most directly and clearly relevant to the leave encashment calculation at exit, not necessarily to day-to-day leave pay during active employment. Confirm your specific employer's practice if this distinction matters to you.
Frequently Asked Questions
Is UAE annual leave pay based on basic salary or total salary?
The official guidance specifies basic salary for the leave-pay calculation, though in practice many employers continue full regular pay during active-employment leave — confirm your employer's specific approach.
Where does the basic-salary rule most clearly apply?
Most directly to leave encashment at exit, which the official guidance specifically addresses this way.
What's the leave pay for 10 days at AED 6,000 basic salary, basic-only?
AED 2,000 (10 days × AED 200 daily basic wage).
Should I confirm this with my employer?
Yes — since practice can differ between the statutory minimum and what an employer actually pays during active-employment leave.