UAE Holiday Pay Calculator — Public Holiday Work Pay & Annual Leave 2024

Calculating holiday pay in the UAE correctly is essential for both employees asserting their rights and HR managers ensuring compliance with UAE Labour Law. The Federal Decree-Law No. 33 of 2021 — the UAE's updated private sector employment law — sets clear rules for public holiday work compensation (Article 28) and annual leave pay entitlement (Article 29). This guide explains both in plain terms, with the exact formulas used by this UAE holiday pay calculator. **How UAE Public Holiday Pay Works (Article 28)** Every official UAE public holiday entitles private sector employees to a full paid day off. When an employer requires an employee to work on a public holiday, Article 28 of Federal Decree-Law No. 33 of 2021 mandates one of two compensations: a substitute rest day on a future working day, or the employee's normal daily wage plus a premium of at least 50% of their basic daily wage. In practice, this means working on a public holiday earns the employee a minimum of 150% of their daily basic rate. The formula is straightforward: **Holiday Pay = (Basic Monthly Salary ÷ 30) × 1.5** For partial days — for example, an employee who works 4 hours out of an 8-hour standard day — the 150% rate applies proportionally: **(Hours Worked ÷ 8) × Daily Basic Rate × 1.5** It is important to understand that this premium is calculated on basic salary only, not on gross salary including housing or transport allowances, unless the employment contract explicitly includes allowances in the calculation base. Always refer to your contract and consult MOHRE for specific cases. **UAE Public Holidays 2026** The UAE Cabinet announces official public holidays each year. For 2026, the confirmed and indicative public holidays include New Year's Day (January 1), Eid Al Fitr (approximately late March, duration based on moon sighting), Arafat Day / Eid Al Adha Eve and Eid Al Adha (approximately late May, typically 3–4 days), Islamic New Year / Al Hijri New Year (approximately June), the Prophet's Birthday / Mawlid Al Nabawi (approximately August), Commemoration Day / Martyrs' Day (November 30), and UAE National Day (December 2–3). Islamic holidays shift approximately 10–11 days earlier each year on the Gregorian calendar, and exact dates are confirmed by the UAE Cabinet via official moon sighting announcement. This paid leave calculation tool uses indicative 2026 dates which should be verified against official government announcements. **Annual Leave Entitlement Under UAE Labour Law** Article 29 of Federal Decree-Law No. 33 of 2021 governs annual leave pay entitlement in the UAE private sector. The entitlement structure is tiered by service length: employees who have completed one full year of continuous service are entitled to 30 calendar days of paid annual leave annually. Employees who have completed between 6 and 12 months of service accrue annual leave at a rate of 2 calendar days per completed month. Employees with fewer than 6 months of service have no statutory annual leave entitlement under federal law, though individual employment contracts may provide more favourable terms. **Annual Leave Pay Calculation** The daily leave pay rate is always: **Basic Monthly Salary ÷ 30** UAE Labour Law standardises all leave pay calculations on a 30-day month regardless of the actual calendar month length. For an employee earning AED 12,000 in basic salary, the daily rate is AED 400. If that employee has 30 days of entitlement and has used 8 days, they have 22 unused days. Their remaining leave pay value is AED 400 × 22 = AED 8,800. During active employment, many companies include housing allowance and transport allowance in the leave pay calculation, reflecting the practical reality that living costs continue during leave. However, the legal floor set by Article 29 uses basic salary. Upon termination or resignation, Article 29(9) specifies that unused annual leave is encashed strictly at basic salary — allowances are excluded from the termination leave pay calculation unless the contract provides otherwise. This distinction between holiday pay calculator UAE results for ongoing employment vs. termination is critical and is handled clearly by this tool. **Public Holidays Falling Within Annual Leave** A common source of confusion in UAE leave salary calculation is the treatment of public holidays that fall during an employee's approved annual leave. Per UAE Labour Law, if an official public holiday occurs during an annual leave period, the holiday is counted as part of the annual leave and is not added as an extra day. In other words, a 14-day annual leave that includes 2 official public holidays costs the employee 14 days of their leave balance — the holidays are not deducted separately. Employees should plan their leave dates carefully to avoid unintentionally spending holiday days on public holidays, or negotiate with their employer about alternative arrangements. **Labour Law Leave Salary Across the GCC** The UAE's leave pay framework is broadly similar to other GCC countries in some respects — tax-free salary environment, basic salary as the calculation base — but differs in specific entitlement periods, premium rates, and social insurance rules. For GCC-wide leave salary comparison across Saudi Arabia, Oman, Qatar, Kuwait, and Bahrain, different rules apply. The UAE's 150% public holiday premium (Art. 28) and the 30-day annual leave entitlement (Art. 29) are both aligned with international labour standards and provide strong employee protections in the region. **Using This UAE Holiday Pay Calculator** This tool has two modules: the Public Holiday Work Pay calculator and the Annual Leave Pay & Entitlement calculator. In the holiday tab, enter your basic monthly salary, select the holiday worked, specify full or partial day, and instantly see your 150% compensation entitlement alongside a side-by-side comparison with the substitute rest day option. In the annual leave tab, select your service band, enter your basic salary and used days, and optionally input your leave dates to check for public holiday overlaps. All formulas reference Federal Decree-Law No. 33 of 2021 directly.