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Why Leave Salary has become irrelevant in the UAE

November 5, 2019

It’s been a common practice in the UAE to provide staff with leave salary before the start of their vacation but during the month they are on leave, the salaries are not processed. This arrangement has been comfortably adopted by employees, as it also provides for the travel arrangements and shopping, but the changed WPS rules has made it difficult for employers to pay the leave salary and not process the salary for the month they are on vacation. As of now, for any  staff for whom the salary is not processed through WPS, the account shall be blocked till all salaries are paid off.

To avoid such situations businesses can take an alternative route of processing the succeeding month’s salary in advance through WPS. The process is simple and can be adopted by any business hassle-free. While processing the salary for all the staff, the following month,  it’s advisable to create an additional SIF File for all those who are supposed to be paid leave salary in advance and thus it can be treated as advance salary for the consecutive month. Once the advance salary is processed through WPS for the upcoming month, the system will further automatically make reference to the advance salary processed and shall not initiate blocking of the account.

Thus, all leave salary to be treated as advance salary making the concept of leave salary irrelevant.

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