Islamic New Year 2026 UAE: Public Holiday, Muharram Leave & HR Policy Guide

As the Islamic New Year approaches, HR teams and businesses in the UAE must assess payroll procedures, review leave records, and ensure efficient workforce planning. Even if you are a small team or a large enterprise, knowing the rules around the Muharram holiday helps you stay compliant and keep your employees informed.

This guide provides comprehensive information on the upcoming holiday date, the significance of the Islamic New Year, and UAE labour laws about holiday pay, overtime, and attendance.

Islamic New Year UAE 2026 - Quick HR Summary

Note: UAE authorities have announced Monday, June 15, 2026, as the official public holiday for the Islamic New Year, even though Muharram 1 is astronomically expected on June 16 or 17. This follows the UAE Cabinet's holiday transfer framework. Always confirm with the official UAE government announcement as the date approaches.

What is the Islamic New Year?

The Islamic New Year, also known as Hijri New Year or Al Hijra, signifies the start of a new year in the Islamic lunar calendar. In 2026, it will herald the arrival of 1448 AH (Anno Hegirae).

The commemoration marks a significant event in Islamic history - the Hijra, when Prophet Muhammad (PBUH) migrated from Makkah to Madinah. This event, occurring more than 1,400 years ago, serves as the beginning of the Islamic calendar. The term "Hijra" denotes migration.

Unlike the Gregorian calendar, which follows the solar cycle, the Islamic (Hijri) calendar is based on the lunar cycle. It consists of 12 months, each commencing with the sighting of a new moon, and adds up to approximately 354 days. As a result, the Islamic New Year falls approximately 11 days earlier on the Gregorian calendar every year.

Muharram, the first month of the Islamic year, holds significant importance as one of the four sacred months in Islam. Its very name, which means "forbidden" or "sacred," reflects the tradition that warfare and bloodshed are prohibited during this holy month. For Muslims, Muharram is a time for reflection, spiritual growth, increased worship, and voluntary fasting, with special significance given to the Day of Ashura (10 Muharram).

When is the Islamic New Year 2026 in the UAE?

The anticipated date for the Islamic New Year 2026 in the UAE is Tuesday, June 16, 2026 (Muharram 1, 1448 AH), subject to confirmation through official moon sighting. Astronomical predictions suggest that Wednesday, June 17, could also potentially be observed as the start of the new year.

In accordance with the transfer rules for public holidays set by the UAE Cabinet, June 15, 2026 has been designated as a public holiday for employees in both the public and private sectors, regardless of the start date of Muharram being the 16th or 17th. This provides residents with an opportunity to savour an extended weekend.

Important: The final confirmation of the Muharram date (and the Hijri New Year date) will be made by UAE authorities based on the actual moon sighting. HR teams should monitor official announcements from MOHRE and the Federal Authority for Government Human Resources.

Quick Date Reference

HR & Payroll Rules for Islamic New Year Holiday in UAE

Under the UAE's labor laws, outlined in Federal Decree-Law No. 33 of 2021, specific regulations are established for public holidays. One such holiday is the Islamic New Year, which is a designated paid day off for employees in both government and private sectors. It is crucial for HR teams to tackle four essential aspects: leave benefits, payroll computation, vacation work regulations, and scheduling shifts.

Is the Islamic New Year Leave Paid?

Yes. Islamic New Year is a fully paid public holiday in the UAE for all eligible employees in both the public and private sectors.

According to the UAE Labour Law, employees are entitled to receive their full pay during official public holidays declared by the government, as long as they are also entitled to wages for that particular period. This means:

• Employees receive their normal day's pay for the holiday, even if they do not work.
• The public holiday does not count against an employee's annual leave balance.
• It applies to all nationalities working in the UAE private sector under a valid employment contract.

How Should HR Teams Calculate Holiday Pay?

Holiday pay for a public holiday is straightforward - employees receive their regular daily wage for the day off.

Basic Formula

Daily wage = Monthly basic salary ÷ 30

For an employee earning AED 6,000 per month basic salary:

Daily holiday pay = AED 6,000 ÷ 30 = AED 200

The specified amount is already factored into the monthly payroll and does not require a separate payment, unless the employee is required to work on the holiday.

It is important for HR teams to appropriately designate June 15, 2026, as a paid public holiday in their payroll systems and accurately record employee attendance on that day.

What Happens if Employees Work on Muharram Holiday?

In the event that an employee is scheduled to work during the Islamic New Year public holiday, they are entitled to specific compensation in accordance with Article 28 of the UAE Labour Law. Employers are required to provide one of the following options:

Option 1 - Compensatory Leave: Provide the employee with a replacement day off, with pay, at a later date.

Option 2 - Premium Pay: Pay the employee their regular daily wage plus an additional 50% of their basic salary for the day worked.

Furthermore, in the event that the employee works beyond their regular shift hours on the public holiday, they will be subject to the overtime rate:

• Regular overtime: 125% of basic hourly wage
• Night-time overtime (10 PM - 4 AM): 150% of basic hourly wage
• Working on a public holiday (all hours): Regular pay + 50% premium

Example Calculation: For an employee on AED 9,000 basic monthly salary working a full day on the Islamic New Year holiday:

• Basic hourly rate = AED 9,000 ÷ 30 ÷ 8 = AED 37.50/hour
• Holiday premium = 50% of basic daily wage = AED 150
• Total compensation for holiday day = Normal daily wage + AED 150 premium

Always document any request to work on a public holiday in writing and keep payroll records up to date to avoid compliance issues.

Attendance & Shift Planning During Public Holidays

Proper shift scheduling for the Muharram holiday period is crucial and requires prior preparation. Here are key areas that HR teams should prioritize:

For office and administrative staff:

• Mark June 15 as a non-working paid day in your HRMS.
• Send employees a reminder about the holiday and expected return date.
• Ensure leave requests around this date are processed in advance to avoid overlap with the public holiday.

For operational, retail, and shift-based teams:

• Identify roles that must be staffed on the public holiday.
• Get written consent from employees required to work.
• Update the shift roster at least one week in advance.
• Record all holiday-day work accurately for payroll processing.

For HR teams:

• Audit attendance systems to ensure the public holiday is correctly coded.
• Confirm that payroll reflects holiday pay rules - including any premium pay for those working.
• Brief managers on the UAE's holiday transfer rules in case employees raise questions about the date.

Muharram Fasting & Ashura

Although the Islamic New Year does not have specific acts of worship, it is still a highly revered month in Islam. Known as "the month of Allah," Muharram holds great significance, and voluntary fasting during this time is highly rewarded, second only to Ramadan.

The day of Ashura, which falls on the 10th of Muharram, holds great importance. In the year 2026, it is expected to occur around June 25-26, depending on the sighting of the moon.

Why is Ashura significant?

Ashura is a significant day for Muslims as it marks the remembrance of two crucial events:

• Allah's intervention in the form of parting the Red Sea allowed Prophet Musa (Moses) and the Israelites to escape slavery at the hands of Pharaoh.
• The martyrdom of Imam Hussain (RA) at the Battle of Karbala is observed with deep mourning and remembrance by Shia Muslims.

Muharram fasting - the 9th and 10th

The Prophet Muhammad (PBUH) observed the fast on the Day of Ashura and urged his companions to do the same. He also intended to fast on the 9th of Muharram, in order to differentiate Islamic tradition from the Jewish practice of fasting solely on the 10th. As a result, Islamic scholars suggest fasting on both the 9th and 10th of Muharram (or the 10th and 11th). These days of voluntary (Sunnah) fasting during Muharram are not mandatory, but strongly encouraged.

Muharram fasting days 2026 (expected):

• 9 Muharram: Around June 24, 2026
• 10 Muharram (Ashura): Around June 25-26, 2026

Note: Ashura is not a public holiday in the UAE. Employees who wish to fast on these days do not receive automatic leave entitlement. Employers may accommodate flexible working hours as a goodwill gesture, but this is not a legal requirement.

UAE Public Holiday Calendar 2026

Here are the UAE's public holidays for 2026. Note that Islamic holidays are subject to official moon sighting confirmation.

Note: All Islamic holiday dates are tentative and subject to official moon sighting announcements. Always refer to the UAE Federal Authority for Government Human Resources for confirmed dates.

HR Checklist for Islamic New Year Holiday

Use this checklist to ensure your team is fully prepared for the Islamic New Year 2026 holiday in the UAE.

Before the Holiday:

• Confirm the official holiday date from UAE government sources (June 15, 2026, confirmed)
• Update the public holiday calendar in your HRMS
• Notify all employees of the holiday date and any shift changes
• Process all pending leave requests to avoid clashes with the public holiday
• Identify staff needed for operational roles on the holiday date
• Get written approval/consent for any employees required to work
• Prepare compensatory leave or premium pay plans for holiday workers
• Review payroll settings to ensure holiday pay is correctly configured

During the Holiday Period:

• Ensure on-call or skeleton staff have clear instructions
• Record actual attendance for any staff who works on the day
• Keep emergency contact details updated for managers and key staff

After the Holiday:

• Process premium pay or compensatory leave for employees who worked
• Update payroll records with accurate holiday pay calculations
• Reconcile attendance records against payroll before the month-end run
• Archive all holiday-related approvals and documentation

Frequently Asked Questions

Is the Islamic New Year a paid holiday in the UAE?

Yes. Islamic New Year (Muharram 1) is an official paid public holiday in the UAE under Federal Decree-Law No. 33 of 2021. Both public and private sector employees are entitled to a full day's pay without it being deducted from their annual leave.

Do private companies in the UAE give leave for Muharram?

Yes. The Islamic New Year holiday applies to private sector employees as well as government workers. All companies operating in the UAE must honour official public holidays as declared by the UAE government.

How should HR calculate payroll during the Islamic New Year holiday?

Employees receive their regular daily wage (monthly basic salary ÷ 30) for the public holiday. No additional payment is needed unless an employee is required to work on the day. If they do work, they must receive their regular pay plus a 50% premium on their basic daily wage, or a compensatory rest day.

Can employers ask staff to work on the Islamic New Year in the UAE?

Yes, employers can request employees to work on a public holiday if operational needs require it. However, they must compensate those employees with either a substitute paid rest day or premium pay (regular wage + 50% of basic salary), in accordance with UAE Labour Law.

What happens if a public holiday falls on a weekend in the UAE?

Under the UAE Cabinet's holiday transfer framework, certain public holidays that fall in the middle of the week can be moved to the beginning or end of the week. For 2026, since Muharram 1 is expected on a Tuesday or Wednesday, the official holiday has been moved to Monday, June 15, 2026. There is no automatic additional day off if a holiday falls on a Friday or Saturday (the UAE weekend).

Is Muharram leave mandatory in the UAE?

Yes, the public holiday on 1 Muharram (Islamic New Year) is mandatory for all employers in the UAE. However, the Day of Ashura (10 Muharram) is not a public holiday and does not carry automatic leave entitlement.

How many days of holiday are given for the Islamic New Year in the UAE?

The Islamic New Year is a one-day public holiday in the UAE. It marks 1 Muharram and is observed for a single day. This differs from Eid Al Fitr and Eid Al Adha, which are multi-day holidays.

Are overtime rules applicable on UAE public holidays?

Yes. If employees work beyond their normal hours on a public holiday, standard overtime rules apply in addition to the holiday premium. Regular overtime is paid at 125% of the basic hourly wage. Night-shift overtime (10 PM to 4 AM) is paid at 150%.

What is the significance of 1 Muharram?

1 Muharram marks the beginning of the new Islamic (Hijri) year. It commemorates the Hijra - the migration of Prophet Muhammad (PBUH) from Makkah to Madinah - which is the founding event of the Islamic calendar. In 2026, it marks the start of the year 1448 AH.

When will the UAE officially announce the Islamic New Year holiday?

UAE authorities typically confirm the exact date of Islamic holidays a day or two before they occur, based on the official moon sighting. For the Islamic New Year 2026, the official holiday has already been declared as Monday, June 15, 2026, by the Federal Authority for Government Human Resources and the Ministry of Human Resources and Emiratisation. HR teams should still monitor MOHRE's official communications for any updates.