UAE Government Announces Islamic New Year Holiday 2026 for the Public and Private Sectors

The UAE government has officially announced the Islamic New Year holiday 2026 for employees across both the public and private sectors. The occasion marks the beginning of the Hijri new year and is one of the official public holidays observed throughout the country.

As employees and businesses prepare for the upcoming break, the announcement provides clarity for workforce planning, payroll processing, leave management, and travel arrangements. Whether you are an employer managing employee schedules or a worker planning a long weekend, understanding the implications of the holiday is important.

In this guide, we cover everything you need to know about the Islamic New Year holiday in UAE, including its significance, holiday entitlements, employer responsibilities, and how HR teams can effectively manage employee leave during the period.

What Is the Islamic New Year?

The Islamic New Year, also known as the Hijri New Year, marks the first day of Muharram, the first month in the Islamic lunar calendar.

The occasion commemorates the migration (Hijrah) of Prophet Muhammad (PBUH) from Makkah to Madinah, a pivotal event in Islamic history. Unlike Eid celebrations, the Islamic New Year is generally observed as a reflective and spiritual occasion rather than a festive one.

Since the Islamic calendar follows lunar cycles, the exact date of the holiday depends on moon sightings and official announcements by UAE authorities.

Islamic New Year Holiday 2026 in the UAE

The UAE government has declared Monday, June 15, 2026, as the official Islamic New Year holiday 2026 for both government and private sector employees.

The holiday will provide workers across the UAE with a paid day off, creating a three-day weekend for employees who observe a Saturday-Sunday weekend schedule.

The announcement is part of the UAE’s official list of public holidays 2026, ensuring uniform observance across all emirates.

Public Sector Employees

Government entities, ministries, federal authorities, and public institutions will observe the holiday in accordance with official directives issued by UAE authorities.

Employees working in the public sector will receive the day as paid holiday, subject to operational requirements in essential services.

Private Sector Employees

The UAE Ministry of Human Resources and Emiratization (MoHRE) has confirmed that the holiday applies to all private sector establishments across the country.

The Islamic New Year holiday for private sector entitlement ensures that employees receive a paid day off without any deduction from annual leave balances.

MoHRE Holiday Announcement 2026

The MoHRE Islamic New Year holiday announcement provides important guidance for employers regarding employee entitlements during public holidays.

Under UAE Labor Law, public holidays are separate from annual leave and must be granted as paid holidays.

Employers should ensure that:

• Employee schedules are updated accordingly.
• Payroll calculations reflect holiday entitlements.
• Leave management systems are configured accurately.
• Attendance records account for public holiday status.
• Employees are informed about operational arrangements in advance.

Organizations operating in industries such as healthcare, hospitality, retail, logistics, and transportation may require certain employees to work during the holiday period. In such cases, employers must comply with applicable UAE Labor Law provisions regarding compensation and alternative rest days.

What Employees Should Know

The Islamic New Year holiday in Dubai announcement means that thousands of employees across government entities, multinational corporations, SMEs, and free zone companies can benefit from a long weekend.

Residents frequently use the holiday to:

• Spend time with family.
• Travel within the UAE.
• Take short international trips.
• Participate in religious observances.
• Extend their vacations using annual leave.

The holiday is expected to generate increased demand for hotels, staycations, entertainment venues, and travel packages throughout the UAE.

Is Islamic New Year a public holiday in Dubai?

Yes. The Islamic New Year is officially recognized as a public holiday throughout the UAE, including Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain.

The holiday is observed by both public and private sector organizations in accordance with federal government directives.

As part of the UAE’s unified public holiday framework, employees receive the holiday regardless of the emirate in which they work.

How the Holiday Affects UAE Annual Leave?

One important consideration for employees is how public holidays interact with annual leave entitlements. Under UAE Labour Law:

• Public holidays are separate from annual leave.
• Employers cannot deduct public holidays from annual leave balances.
• Employees who combine annual leave with public holidays may enjoy longer breaks.
• Public holiday pay remains protected even when annual leave is taken immediately before or after the holiday.

For example, an employee who takes annual leave on Thursday and the following Monday may effectively create an extended holiday period around the Islamic New Year weekend.

Why do Businesses need effective Leave Management?

Public holidays often create administrative challenges for HR and payroll teams.

Organizations must manage:

Employee Scheduling

Ensuring adequate staffing levels while allowing employees to enjoy their holiday entitlements.

Payroll Compliance

Accurate calculation of holiday pay, overtime, and compensation where applicable.

Attendance Tracking

Maintaining accurate attendance records for employees working during public holidays.

Leave Approval Workflows

Handling increased leave requests before and after public holidays.

A modern HRMS and payroll system can automate these processes, helping organizations maintain compliance while reducing manual administration.

How does HR Software simplify Public Holiday Management?

Managing public holidays manually can become complex, particularly for organizations with large workforces.

An integrated HRMS solution enables businesses to:

• Configure UAE public holiday calendars.
• Automate leave calculations.
• Track employee attendance.
• Process payroll accurately.
• Manage overtime and compensatory leave.
• Ensure compliance with UAE Labour Law requirements.

By digitizing holiday and leave management processes, organizations can improve employee experience while reducing administrative overhead.

Looking Ahead to Other Public Holidays 2026

The Islamic New Year holiday 2026 is one of several public holidays that employees can look forward to throughout the year.

Other significant dates included in the UAE’s public holidays 2026 calendar include:

• Eid Al Fitr
• Arafat Day
• Eid Al Adha
• Prophet Muhammad’s Birthday
• UAE National Day

Because some Islamic holidays depend on moon sightings, final dates may vary slightly based on official announcements.

Employers are encouraged to monitor government notifications and update their holiday calendars accordingly.

Conclusion

The announcement of the Islamic New Year holiday 2026 provides clarity for employees and employers across the UAE. It also highlights the importance of effective workforce planning, leave management, and payroll compliance. By preparing in advance and leveraging modern HR technology, organizations can ensure a smooth holiday period while maintaining operational efficiency. As the UAE continues to modernize workplace practices, automated HRMS and payroll solutions like Paylite remain invaluable tools for managing public holidays, employee leave, and workforce compliance throughout the year.