I have some queries on the calculation of the last month's salary for a resignee. One of my staff members is resigning from his position, and his last working day with the company (located in Dubai, contract under Jafza) will be on 24 August 2014. I would like to double-check the calculations for his last month's salary. Please advise which is the correct calculation under UAE Labour Law.
He joined our company on 20 September 2013 and will be leaving on 24 August 2014. Since his tenure is less than a year, he will not be receiving any gratuity.
Prorated Monthly Salary for July
1. a) Monthly base salary / 31 days (number of days in July) * 24 (number of service days with the company)
b) Monthly base salary * 12 months / 365 days * 24 days (number of service days with the company)
Allowances for July
2. a) Monthly allowance / 31 days * 24 days
b) Monthly allowance * 12 / 365 days * 24 days
19 Days Leave Encashment
3. a) Basic salary * 12 months / 261 (total working days of the year) * 19 days to encash
b) Basic salary * 12 months / 365 days * 19 days to encash.
Regards,
He joined our company on 20 September 2013 and will be leaving on 24 August 2014. Since his tenure is less than a year, he will not be receiving any gratuity.
Prorated Monthly Salary for July
1. a) Monthly base salary / 31 days (number of days in July) * 24 (number of service days with the company)
b) Monthly base salary * 12 months / 365 days * 24 days (number of service days with the company)
Allowances for July
2. a) Monthly allowance / 31 days * 24 days
b) Monthly allowance * 12 / 365 days * 24 days
19 Days Leave Encashment
3. a) Basic salary * 12 months / 261 (total working days of the year) * 19 days to encash
b) Basic salary * 12 months / 365 days * 19 days to encash.
Regards,