Gratuity UAE

Gratuity UAE



Gratuity UAE

National Employee:


The national worker shall be entitled to end of service benefits at the end of his/her service, in accordance with the legislation regulating the pensions and social securities in the State.

Foreign Employee:


The foreign worker shall be entitled to a benefit for parts of the year in proportion to the period spent at work, provided that he/she completed at least one year of continuous service.

Based on the foregoing, it is required  that the end of service benefits for the foreign worker in its entirety does not exceed two years’ wage.

The employer may deduct from the end of service benefits any amounts payable under the law or a judgment, in accordance with the conditions and procedures specified in the Implementing Regulation hereof.

The unpaid days of absence from work shall not be included in the calculation of the service term. It is required based on the foregoing that the end of service benefits for the foreign worker in its entirety does not exceed two years’ wage. 

Calculation of End of Service Benefits (Foreign Employees):


The full-time foreign worker, who completed a year or more in continuous service, shall be entitled to end of service benefits at the end of his service, calculated according to the basic wage as per the following: 


A wage of (21) twenty-one days for each year of the first five years of service;

A wage of (30) thirty days for each year exceeding such period.

In all cases, the gratuity payable shall not exceed the wage of 2 years.

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