Understanding UAE Annual Leave Pay: Are Allowances Included?
When reviewing a new job offer in the UAE, it is common to see a total salary package broken down into a basic wage and various allowances, such as transport. Many employees worry that if they take annual leave, their employer might deduct these allowances since they aren't physically commuting to work. However, under the UAEâs Federal Decree Law No. 33 of 2021, an employee is legally entitled to receive their full "wage" during their annual leave period.
The law explicitly defines "wage" as the basic salary combined with all prescribed allowances mentioned in your employment contract. Because your transport allowance is categorized as part of your contractual wage, your employer cannot withhold or deduct it while you are on paid annual leave. As long as these allowances are clearly documented in your contract, you are entitled to receive them as part of your standard pay throughout your vacation time.