End-of-Service Gratuity
Written in plain language for general understanding. This is educational content, not legal advice. Based on UAE federal decrees, laws, and ministerial decisions.
UAE Federal Law
What is this right?
When you leave a job in the UAE, you are entitled to an end-of-service gratuity payment based on your length of service. This is one of the most important financial rights for workers in the UAE:
- First 5 years: You earn 21 days of basic salary for each year of service.
- After 5 years: You earn 30 days of basic salary for each additional year.
- Total cap: The total gratuity cannot exceed 2 years' worth of basic salary.
- Partial years: If you work part of a year, the gratuity is calculated proportionally.
- Minimum service: You must complete at least 1 year of continuous service to qualify.
The gratuity is calculated based on your last basic salary (not including allowances, commissions, or bonuses).
When does it apply?
- You have worked for your employer for at least 1 year continuously.
- This applies whether you resign, are terminated, or your contract ends.
- Workers on part-time contracts receive gratuity proportional to their working hours.
- Some free zone employers may offer alternative savings schemes (like DIFC's DEWS) instead of gratuity.
What should you do?
- Calculate your gratuity before leaving — use the MOHRE online gratuity calculator to estimate your entitlement.
- Make sure the calculation is based on your basic salary only, not your total package.
- Your employer must pay the gratuity within 14 days of your last working day.
- If your employer refuses to pay, file a complaint with MOHRE immediately.
What should you NOT do?
- Do not confuse basic salary with total salary — housing, transport, and other allowances are usually excluded from the gratuity calculation.
- Do not accept a lower amount without checking the math — use the MOHRE calculator to verify.
- Do not assume termination for cause means no gratuity — under the 2021 law, you keep your gratuity even if dismissed, unless terminated under Article 44 (gross misconduct).
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