How per-day salary is calculated
Most UAE employers work out the daily rate by dividing the monthly salary by 30, whatever the length of the month. Some use the actual number of days in the month. You can choose either in the calculator.
Daily rate = monthly salary ÷ 30
Unpaid leave deduction = daily rate × unpaid days
Total salary AED 9,000 and 2 days of unpaid leave: 9,000 ÷ 30 = AED 300 × 2 = AED 600. Salary for the month: AED 8,400.
What can be deducted
Article 25 lists the deductions an employer may make, including:
- Recovery of salary advances or loans
- Amounts paid by mistake
- Social security, pension or approved housing contributions
- Disciplinary fines approved under the company’s rules
- Debts ordered by a court
The Executive Regulations generally do not allow total deductions to go above 50% of the wage. Unpaid leave is not technically a deduction: you are simply not paid for days you did not work.
Unpaid leave and your gratuity
Unpaid leave and unauthorised absence days are removed from your service when gratuity is calculated, so long unpaid breaks also reduce your end-of-service benefit.
Frequently asked questions
How is one day’s salary calculated in the UAE?
Usually monthly salary ÷ 30. Some employers divide by the calendar days of the month.
Is unpaid leave deducted from total or basic salary?
From the salary you would have received for that day, which is normally your total salary including allowances.
What is the maximum salary deduction?
The Executive Regulations generally cap total deductions at 50% of the wage.
Can my employer fine me for being late?
Only if the penalty is in approved internal rules and follows the disciplinary steps in the law.