(Article 28 of Federal Decree-Law No. 33 of 2021 Regulation of Employment Relationships)
Answer: If an employee works on a public holiday and the employer chooses to compensate them financially instead of giving a day off, the payment should be as follows:
• Normal Monthly Salary. The employee will receive their full monthly salary as usual. This already includes payment for the public holiday worked (since it is a paid day off by default).
• Additional Compensation. On top of the regular salary, the employee must be paid extra compensation for working on the public holiday, calculated as:
- One day’s basic salary, and
- An additional 50% of that one day’s basic salary
Example:
The employee’s basic salary is AED 6,000 per month (approx. AED 200 per day based on 30 days):
Extra compensation for working on the public holiday: AED 200 (one day basic) + AED 100 (50% of basic) = AED 300
Total paid that month: AED 6,300