UAE Labour Law Calculator
Annual leave, sick pay, overtime and notice — worked out from the law, not from what your employer tells you.
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Guidance based on Federal Decree-Law No. 33 of 2021 and its implementing regulations. It does not cover free zones with their own employment rules (such as DIFC and ADGM), part-time or flexible contracts, or your specific contract terms, which may be more generous than the statutory minimum. Not legal advice — for a dispute, contact MOHRE or a UAE employment lawyer.
Everything is calculated on basic salary
This is the thread running through the whole law, and it is where most disputes start. Overtime, sick pay and the payout of untaken leave are all worked out on your basic salary — never on your total package. If your AED 15,000 salary is AED 7,000 basic plus AED 8,000 in allowances, then every one of those entitlements is calculated on the 7,000.
There is one exception worth knowing: leave you actually take is paid on your full wage including allowances. Leave you do not take, and get cashed out on exit, is paid on basic only. That difference is why the final settlement so often disappoints.
Sick pay comes in three tiers
| Sick days in a year | What you are paid |
|---|---|
| First 15 days | Full pay |
| Next 30 days | Half pay |
| Final 45 days | Unpaid |
That is 90 days in total, and it applies only after probation — there is no paid sick leave during probation at all. You must tell your employer within three days and produce a medical certificate from a licensed facility.
An employer cannot dismiss you simply for being ill within the 90 days. Beyond that, termination becomes lawful, but you still keep your end-of-service benefits.
Ramadan makes overtime start earlier
During Ramadan the working day is cut by two hours — for every employee, of any religion. Because the standard day is shorter, overtime begins two hours sooner than usual. Hours that would be ordinary working time in any other month become paid overtime in Ramadan.
Employers do not always apply this correctly, and most employees never realise they are owed it. Overtime rates:
- 125% of the basic hourly rate for normal overtime
- 150% for hours between 10pm and 4am
- 150% for a rest day or public holiday, unless you get a day off in lieu
- Capped at 2 extra hours a day, except in genuine emergencies
Frequently Asked Questions
How much annual leave am I entitled to in the UAE?
Once you complete one year of service you are entitled to 30 calendar days of paid annual leave a year. Between six and twelve months of service you accrue two calendar days for every month worked, and below six months there is no statutory entitlement. Note that these are calendar days, not working days, so weekends falling inside your leave count towards it.
How is unused annual leave paid out when I leave?
Any leave you have not taken must be paid in your final settlement, and it is calculated on your basic salary, not your total package. The usual method is basic salary divided by 30 to give a daily rate, multiplied by the number of untaken days. Confusingly, leave you actually take is paid on your full wage including allowances, while untaken leave that is cashed out is basic-only, which is why the payout often looks smaller than people expect.
How does UAE sick leave pay work?
You are entitled to up to 90 days of sick leave a year once you have passed probation, and it is paid in three tiers: the first 15 days at full pay, the next 30 days at half pay, and the final 45 days unpaid. It can be taken continuously or in separate spells. You must notify your employer within three days and provide a medical certificate from a licensed facility. There is no paid sick leave during probation.
What overtime rate should I be paid?
Overtime is paid at 125% of your basic hourly wage, rising to 150% for hours worked between 10pm and 4am, and 150% for work on your rest day or a public holiday, unless you are given a day off in lieu instead. It is calculated on basic salary only, never on allowances, so a large housing allowance does not raise your overtime rate. Overtime is capped at two extra hours a day except in genuine emergencies.
Do Ramadan hours affect my overtime?
Yes, and this catches people out. During Ramadan the working day is reduced by two hours for every employee, regardless of religion. Because the standard day is shorter, overtime starts two hours earlier than usual, so hours that would be ordinary working time in another month become paid overtime during Ramadan. Employers do not always apply this correctly.
How long is my notice period?
The notice period is between 30 and 90 days, as set out in your contract, and it must be the same for both you and your employer. You continue to work and receive full pay throughout it, and your employer may place you on garden leave but must still pay you. During probation, an employer gives 14 days notice, while an employee leaving to join another UAE employer gives 30 days.
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