UAE Gratuity Policy Changed: How It Affects End-Of-Service Pay

A new calculation process has been announced by the MoHRE.

Your end-of-service gratuity calculations will be change if you work in the private sector in Dubai.

On Twitter, the UAE Ministry of Human Resources and Emiratisation (MoHRE) confirmed the updates to UAE gratuity.

 The tweet reads: “A full-time employee in the private sector who has completed a year or more of continuous service is entitled to an end-of-service gratuity at the end of their service, however, unpaid leave days are not included in calculating the gratuity.”

A full-time employee in the private sector who has completed a year or more of continuous service is entitled to an end-of-service gratuity at the end of their service, however, unpaid leave days are not included in calculating the gratuity. #MoHRE #UAE pic.twitter.com/WdTu7bmTf8

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 10, 2023

It means any unpaid leave days you’ve taken will be removed from the end-of-service calculations.

As of today, all those who complete one year at their workplace are entitled to a gratuity payment upon leaving their role at the company.

How Is End-Of-Service UAE Gratuity Calculated?

Using your basic salary (before allowances are added on), you will receive a 21-day salary payment for the first five years of service.

People who have been working in the same company for more than five years will get 30 days worth of their basic for every year past the first five.

After this week’s update, unpaid leave days will be taken off this final total.

If you want to find out how much gratuity you might be owed, you can check out the Dubai Development Authority’s gratuity calculator.

Updates to the UAE labour laws last year saw an announcement that gratuity will not be forfeited if you are terminated through ‘gross misconduct’ which was a big change.