Unified UAE Legislation Database

Practical Guide: What is the method for calculating an employee's salary upon dismissal for the last month not fully worked?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Situation:

An employee worked from November 1, 2025 to November 20, 2025. November 20, 2025 was the last working day. The employee's total monthly salary is AED 10,000. What formula can be used to calculate salary for the last incomplete month worked, and what law/regulation governs this?

 

What actions are required?

The calculation method will depend on the specific method used by a certain company. In practice, the general rule is to use 30 days in calculations, but if a company's internal policies establish a working day calculation method, then the calculation method will differ from the general practice.

 

Calculation for the above-mentioned example:

 

Total monthly salary = AED 10,000

November 2025 = 30 days

Days worked = 20 calendar days

 

10,000 (Total monthly salary) ÷ 30 (days) = 333.3

333.3 x 20 (days worked) = 6,666

Total salary for days worked in November is AED 6,666.

 

Basis:

- Articles 43, 53 of Federal Decree-Law No. 33/2021

 

Useful to know:

- The full salary is taken into consideration in this situation, including the basic part and allowan...