UAE unpaid leave deduction calculator

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Unpaid leave is not paid, so the month's salary is reduced for each unpaid day. SupaJack Construct, like most UAE payroll, divides each part of the salary by the calendar days in the month and pays only the days worked or on paid leave. A half day counts as half a deduction.

How the deduction is worked out

The calculator takes the basic salary and each allowance, divides it by the calendar days in the month you choose (28 to 31), and pays the remaining days. The deduction is the difference between the full monthly pay and what is paid. Unpaid days are also not counted as service for gratuity (Article 51(4) of Federal Decree-Law 33 of 2021).

What happens to each part of pay
ItemTreatment for an unpaid dayWhy
Basic salaryReduced by 1 ÷ days in monthCalendar-month payroll standard
Housing, transport and other allowancesReduced the same wayThe whole package is pro-rated
Half dayHalf a day's deductionCounted as 0.5 days
Gratuity serviceUnpaid days not countedArticle 51(4)
Annual leaveNot reduced by this calculatorLeave accrues by months of service

Things to check before deducting

  • Is the day really unpaid? Annual leave, sick leave within the paid tiers and public holidays are paid.
  • Is it recorded? An absence entered as approved unpaid leave and also marked absent must not be deducted twice; SupaJack Construct counts the day once.
  • Does the contract use 30 days instead of calendar days? Some companies fix a 30-day month; the difference is small but should be consistent.

Correcting a wrong deduction

If a deduction was wrong on a paid run, SupaJack Construct does not edit the run. It refunds the exact per-day rate that was deducted on that payslip as a correction in the next run, so the WPS file already sent to the bank stays untouched. See the guide to UAE labour rules for contractors and use the gratuity calculator, overtime calculator, annual leave calculator, unpaid leave calculator, payment certificate calculator and retention calculator.

Worked example

A foreman earns AED 6,000 basic, AED 2,000 housing and AED 500 transport, AED 8,500 in all, and takes 3 days of unpaid leave in February 2026, which has 28 days. Each part is paid for 25 of 28 days and rounded to the fils: basic AED 5,357.14, housing AED 1,785.71 and transport AED 446.43, so AED 7,589.28 is paid and the deduction is AED 910.72.

Questions people ask

How is unpaid leave deducted in the UAE?

Each part of the salary is divided by the days in the month and only the paid days are paid. The deduction is the unpaid days' share.

Are allowances deducted for unpaid leave?

In SupaJack Construct's calendar-month method, yes: basic and allowances are all pro-rated by the paid days.

Is the deduction based on 30 days or calendar days?

SupaJack Construct uses the calendar days of the month by default. Some contracts fix 30 days; use whichever your contract and policy set.

Does unpaid leave affect gratuity?

Yes. Unpaid days of absence are not counted as service for end-of-service gratuity.

How is a half day treated?

As half a day's deduction.

Can an absence be deducted twice?

It should not be. A day that is both approved unpaid leave and marked absent counts once.

Is unpaid leave allowed in the UAE?

Yes, by agreement between the worker and employer, in addition to the paid leave types the law sets.

What if the deduction was wrong on a paid run?

Correct it in the next run as a refund at the same per-day rate that was deducted, rather than editing the paid run.

Does unpaid leave reduce annual leave?

This calculator does not reduce annual leave. Check your company policy and contract.

Is the WPS file affected?

Yes. The salary information file reports the pay actually due, so it shows the reduced amount for that month.

Sources

  1. Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationship (MOHRE, consolidated)
  2. Employment laws and regulations in the private sector (u.ae)
  3. Ministry of Human Resources and Emiratisation

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