UAE Employee Leave Salary Deductions Legality

Can a UAE employer deduct your leave salary? Not unless the deduction falls under one of the five cases in Article 25 of Federal Decree-Law No. 33 of 2021: loan repayments, overpayment recovery, pension and insurance contributions, approved disciplinary fines, and court orders. During paid annual or maternity leave, your employer must pay your wage for the leave days, and total deductions can never exceed 50% of your wage.

However, in 2024, MOHRE reported that more than 12,500 companies violated the Wage Protection System (WPS). If you are newly hired in the UAE, read this guide to understand the legality of salary deductions for employee leave, know your legal rights, and protect them.

What Are the 7 Types of Paid Leave in the UAE?

Under Federal Decree-Law No. 33 of 2021, eligible private-sector employees are entitled to seven types of paid leave: annual, sick, maternity, bereavement, parental, study, and national service leave. Employers cannot deduct leave pay unless the law permits it.

Annual Leave

Annual leave allows employees to take paid time off for rest and personal activities such as family functions, vacations, and festivals.

How many days of annual leave do UAE employees get?

• Full-time employees get 30 days of paid annual leave per year after one year of service, and 2 days per month if they have completed six months but less than one year. Part-time workers receive annual leave in proportion to their working hours, as set in their contract.

Note: Part-time workers, based on the number of working hours and terms of the contract, are also eligible for paid annual leave.

Sick Leave

Sick leave allows eligible employees to recover from illness or an accident while receiving payment.

How much sick leave is paid in the UAE?

• Employees may take up to 90 days of sick leave per year after completing their probation period, subject to UAE labour law.
• The first 15 days are paid at full wages, the next 30 days at half wages, and the remaining 45 days are unpaid.

Note: Employees may lose sick leave pay if illness results from alcohol consumption or other qualifying misconduct.

Maternity Leave

Maternity leave provides female employees with time off for childbirth and recovery, and can be availed both before and after childbirth

How long is maternity leave in the UAE?

• Private-sector employees get 60 days of maternity leave: 45 days at full pay and 15 days at half pay. They may take an extra 45 unpaid days for pregnancy- or childbirth-related illness, and 30 days at full pay if the baby is sick or has a disability, extendable by 30 unpaid days.

Note: After returning to work, mothers are entitled to two additional nursing breaks of one hour each per day for six months.

Bereavement Leave

Bereavement leave gives employees paid time off following the death of specified close family members and to manage personal and family matters in this grieving situation.

Entitlement & Conditions

• Five days of paid leave are allowed to the employee in case of a spouse’s death
• Three days of paid leave for the death of a parent, child, sibling, grandparent, or grandchild.

Note: Employees have to read the leave policy of their company before applying for a bereavement leave in the UAE.

Parental Leave (Mothers and Fathers). What is parental leave in the UAE?

Both mothers and fathers in the private sector get 5 working days of paid parental leave, taken continuously or intermittently within six months of the child’s birth.

Entitlement & Conditions

• Five parental leave days are allowed to both mothers and fathers
• This leave can be availed within six months of the delivery date.

Note: Parental leave is a paid leave that can be applied for by both mother and father of the baby.

Study Leave

Study leave allows eligible employees who are studying in one of the UAE’s accredited educational institutions to pursue their higher studies with professional development.

Who qualifies for study leave in the UAE?

• Employees enrolled at an accredited UAE educational institution who have completed at least two years of service get 10 working days of paid study leave per year to sit exams.

Note: In order to avail student leave, the working professional must have completed two years of service in an organisation.

National Service Leave

National service leave allows eligible employees to take time off work to fulfil their compulsory military or reserve service obligations.

Who gets national service leave in the UAE?

• Only UAE nationals called for national or reserve service. The leave covers the full service period set by applicable UAE legislation, and employees may need to submit an official call-up notice. It does not apply to expatriate employees.

Note: This specific national service leave entitlement is for eligible UAE nationals, not foreign employees.

When Can a UAE Employer Legally Deduct Salary?

Article 25 of Federal Decree-Law No. 33 of 2021 allows deductions in only five cases: loan repayments, overpayment recovery, pension and insurance contributions, approved disciplinary fines, and court-ordered debts. All deductions combined cannot exceed 50% of the wage.

1. Loan Repayments

An employer can deduct loan instalments only with the employee’s written consent, up to 20% of the monthly wage, and without charging interest.

2. Recovery of Overpayments

If an employee was overpaid due to a payroll error, the employer can recover the excess, but no more than 20% of the wage per month.

3. Mandatory Contributions

Employers may deduct pension and insurance contributions required under UAE law, such as GPSSA pension contributions for UAE nationals. Each deduction must be shown on the payslip.

4. Disciplinary Penalties

Employers may deduct fines only for violations listed in the company’s MOHRE-approved sanctions bylaws, capped at 5% of the wage.

5. Court-Ordered Debts

Employers may deduct amounts ordered by a court up to 25% of the wage, except for alimony, where a higher amount may be deducted. The 50% cap applies to all deductions combined.

What Should You Do If Your Leave Salary Is Deducted Illegally?

First, compare your payslip with your leave entitlement and request a written explanation from HR. If the issue is not resolved, file a complaint with MOHRE through its app, website, or call centre, keeping your contract, leave approval, and payslips as evidence.

Review your payslip: Check the amount paid, the deduction description, and the period covered.

Check your leave entitlement: Confirm the type of leave, the number of approved days, and the applicable payment rules.

Keep supporting documents: Save your employment contract, leave approval, medical certificates where relevant, payslips, and written communications with your employer.

Ask HR or payroll for clarification: Request a written explanation of the deduction and how the amount was calculated.

Raise the issue with MOHRE if necessary: If the matter remains unresolved, contact the Ministry of Human Resources and Emiratisation through its official channels to understand the available labour complaint process.

Conclusion

UAE employers must pay eligible employees during annual, sick, maternity, bereavement, parental, and study leave. Salary deductions are legal only in the five cases listed in Article 25, and total deductions cannot exceed 50% of the wage. If your leave pay is reduced without a lawful reason, raise it with HR and then MOHRE.