Public Holiday Compensation in the UAE
If you’re required to work on a UAE public holiday, your employer must give you either a substitute rest day or your normal pay for that day plus at least 50% of your basic wage as a premium. It’s one or the other, decided by your employer unless your contract says otherwise, not both together.
Your Default Right: A Paid Day Off
Under Article 28(1) of Federal Decree-Law No. 33 of 2021, private-sector employees are entitled to official public holidays as fully paid leave. These holidays are set by Cabinet decision each year and apply across the private sector regardless of your role or seniority.
If You’re Required to Work: The Two Lawful Methods
Sometimes business needs mean you’re asked to work anyway. Under Article 28(2), your employer must compensate you in one of two ways:
- A substitute rest day, given on another date in lieu of the holiday you worked, with no extra pay required beyond your normal wage, or
- Your normal pay for that day, plus a premium of at least 50% of your basic wage.
This is an either/or choice, not both together. Your employer decides which method applies, unless your employment contract, a collective agreement, or company policy specifically gives you the choice instead. Legal commentators recommend agreeing on which method applies before the holiday arrives, since disputes often come up specifically because this wasn’t clarified in advance.
Example Of Public Holiday Compensation
Say your basic salary is AED 9,000 a month and you’re required to work on a public holiday, with your employer choosing the premium-pay option instead of a substitute day off.
| Step | Calculation | Result |
|---|---|---|
| Daily basic wage | 9,000 ÷ 30 | AED 300 |
| Premium | 300 × 50% | AED 150 |
That total is 300 (your normal pay, since it was a paid holiday regardless) plus 150 (the premium) = AED 450.
Worth noting: the 50% premium is calculated specifically on your basic wage, not your total salary package, the same rule that applies to gratuity and overtime.
This Applies to Everyone, Including Managers
A common misconception is that managerial or senior staff are exempt from these protections. They aren’t. UAE labour law doesn’t carve out an exception for management roles, so if you’re required to work a public holiday, you’re entitled to the same choice of a substitute day or premium pay as any other employee, regardless of title.
What If Neither Is Given?
An employer can’t simply have you work a public holiday and provide nothing in return. Refusing both options, no substitute day and no premium pay, is a violation of Article 28. If this happens to you, it’s the same kind of wage-related issue you can raise with MOHRE, either through the app, hotline, or a service center.
FAQs
This page provides general information about UAE public holiday compensation and is not legal advice. For a specific dispute, consult MOHRE or a licensed UAE labour lawyer.
For your gratuity specifically, use the UAE gratuity calculator on the homepage.
