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Employment & Labour

End of Service Gratuity UAE 2026: How It Is Calculated, Who Qualifies and What to Do If It Is Unpaid

End of service gratuity UAE: 21 and 30-day rules, basic wage, resignation, deductions and the 14-day deadline, with examples. Get expert help on WhatsApp.

Mir Ali
Mir Ali Founder, MIRDXB PRO
Updated 23 Sep 2026 45 min read
End of Service Gratuity UAE 2026: How It Is Calculated, Who Qualifies and What to Do If It Is Unpaid (illustrative photo)
Reviewed by Mir Ali, founder of MIRDXB PRO. Checked against official sources and the real cases we have handled over the past three years. How we write and check our guides

Key takeaways

  • End of service gratuity (UAE) for a foreign full-time private-sector worker is 21 days’ basic wage for each of the first five years and 30 days’ for each later year, capped at two years’ wage (Article 51, Federal Decree-Law No. 33 of 2021).
  • You qualify after one year of continuous service. Part-years after that are paid in proportion; below one year there is nothing.
  • Only the last basic wage counts. Housing, transport and other allowances are excluded by the law’s definition of basic wage.
  • No cut for resigning. Gratuity after resignation is calculated exactly as after termination; the one-third and two-thirds reductions belonged to the old 1980 law.
  • Unpaid absence comes out of the service period; probation and notice count as service.
  • Payment is due within 14 days of the contract ending (Article 53), less only deductions allowed by Article 29 of the Executive Regulation.
  • Different rules apply in DIFC (DEWS) and ADGM, under the voluntary alternative savings scheme (Cabinet Resolution 96/2023), and for UAE nationals, government staff and domestic workers.
  • If unpaid, file with MOHRE: it decides claims up to AED 50,000, larger ones go to court, and the time limit is two years. Gratuity is not taxed in the UAE.
Leaving your job, or already left and waiting for your settlement? Send us your contract, your last payslip and the settlement sheet. We will check the gratuity calculation line by line and tell you in writing whether the figure is right.

Check my gratuity on WhatsApp

End of service gratuity (UAE) is the lump sum a private-sector employer must pay a foreign worker when employment ends after at least one year of continuous service, calculated at 21 days’ basic wage for each of the first five years and 30 days’ basic wage for each later year, capped at two years’ wage. It is set by Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, and the detail for part-time work and deductions is in the Executive Regulation, Cabinet Resolution No. 1 of 2022. It is owed whether you resign, are terminated or reach the end of a fixed-term contract, and it must be paid with your other end of service benefits within 14 days.

This guide is written from the text of the law and the Executive Regulation on uaelegislation.gov.ae, MOHRE’s own pages and the published rules of DIFC and ADGM, all checked on 23 September 2026. It explains who qualifies, what “basic wage” means, the gratuity calculation step by step with checked arithmetic, what counts as service, part-time contracts, deductions, the 14-day deadline, the alternative savings scheme, free zones, and what to do when the money does not arrive. If you only want a number, our gratuity tool will run it; this page explains every input so you can check the result.

End of service gratuity UAE at a glance

Each rule, what it says and where it is written.

RuleWhat applies to a foreign full-time worker (mainland and most free zones)Where it is written
Who qualifiesA foreign worker who has completed one year or more of continuous serviceDecree-Law 33/2021, Art. 51(2)
Rate, years 1 to 521 days’ wage for each yearArt. 51(2)(a)
Rate, year 6 onwards30 days’ wage for each year in excess of fiveArt. 51(2)(b)
Part of a yearPaid in proportion to time worked, once one year is completeArt. 51(3)
Unpaid absenceNot counted as serviceArt. 51(4)
Which wageThe last basic wage received (average daily wage for piece-rate workers); allowances excludedArt. 1 (definition) and Art. 51(5)
MaximumTotal may not exceed two years’ wageArt. 51(6)
DeductionsOnly amounts due by law or a judgment: loans and overpayments, contributions, penalties, court debts, damage caused by the worker’s mistakeArt. 51(7); Executive Regulation Art. 29
Part-time and job-sharingFull-time gratuity multiplied by contract hours ÷ full-time hoursArt. 52; Executive Regulation Art. 30
ResignationNo reduction; the same gratuity calculation appliesArt. 51 (no reduction stated); old reductions were in Law 8/1980
Payment deadlineWithin 14 days of the end of the contract, with all other entitlementsArt. 53
If unpaidMOHRE complaint; MOHRE decides claims up to AED 50,000, larger claims go to court; two-year time limitArt. 54 (as amended by Decree-Law 9/2024)
Alternative schemeEmployer may move staff to a monthly-funded savings scheme: 5.83% of basic (up to 5 years’ service), 8.33% afterArt. 51(8); Cabinet Resolution 96/2023
TaxNone: no personal income tax, and corporate tax does not apply to employment incomeMinistry of Finance corporate tax FAQ
End of service gratuity UAE: days of basic wage earned by years of service, 21 days a year for the first five years, 30 days after, capped at 720 days
End of service gratuity in the UAE by years of service: the day count builds at 21 days a year for five years, then 30 days a year, and stops at two years’ wage (720 days at a 30-day month) during the 26th year.

End of service gratuity UAE: how MIRDXB PRO helps

Most people who contact us about gratuity are short of certainty, not information: is the basic figure right, was unpaid leave taken out correctly, may the employer deduct that loan, and what happens when day 14 passes? We are a PRO and visa services firm in Al Barsha 1, Dubai. We check settlements, file and follow MOHRE claims for unpaid end of service benefits, and handle the visa cancellation alongside. When a claim needs a lawyer, we say so.

If you already know the settlement is wrong or unpaid, the direct route is our labour claims and MOHRE complaint service. For employers, final settlements and cancellations are part of our PRO services in Dubai.

What we do

  • Check the settlement against the law. We rebuild the gratuity calculation from your contract, salary revisions, joining date, last working day and leave record, and give you a written comparison with the employer’s figure.
  • Draft the written request to the employer, setting out the basic wage, service dates, day count and the Article 53 deadline, so there is a dated record before anything is escalated.
  • File and follow the MOHRE claim for unpaid gratuity and other dues, attend with you or for you where the channel allows, and keep you told at each stage.
  • Keep your visa file safe while the claim runs: cancellation in the right order, grace period planning and family visas.
  • For employers: prepare the final settlement statement, check deductions against Article 29 of the Executive Regulation, and process the MOHRE and GDRFA or ICP cancellations.

How it works

  1. WhatsApp us first with your contract, latest payslip, joining date, last working day and the settlement sheet if you have one.
  2. We check the figures and send you our calculation with each step shown, plus what we think is missing or wrong.
  3. You decide whether to raise it yourself using our note, or have us take it on for a fee quoted in writing.
  4. We close the file once the money is paid or MOHRE has issued its decision, and tell you what to keep.

What it costs

Any government fee, such as a MOHRE or typing-centre charge, is passed on at cost with the receipt. Our own fee is quoted in writing before we start and depends on the work: a settlement check is not the same job as a full claim with cancellation. You can see how we price on our fees page.

Why residents use us

  • We publish our sources: every rule here links to the law that sets it.
  • We handle MOHRE, GDRFA Dubai and ICP, so the money and the visa are dealt with together rather than by three different people.
  • We tell you when you do not need us. If the settlement is right, we say so.
  • Our office is in Al Barsha 1, open by appointment; whatsApp us any time, 24 hours; office open Monday to Friday, 9:00 to 18:00 (Dubai time), and we can act for you under power of attorney if you have already left the UAE.
Employer says you are not entitled, or has offered less than you expected? Send us the figures. We will show you the gratuity calculation the law requires and the next step if the numbers do not match.

Talk to us on WhatsApp

Who is entitled to end of service gratuity in the UAE

Article 51(2) sets three conditions. You must be a foreign worker, on a full-time contract (part-time and other models follow their own formula, covered below), and you must have completed one year or more of continuous service. If all three are met, the end of service gratuity is due “upon the end of his service”. The law does not say “upon termination by the employer” or “unless the worker resigns”. It is tied to the end of service, however that end comes about.

The Labour Law itself applies to “all Establishments, Employers and Workers in the Private Sector in the State” (Article 3). That covers mainland companies licensed by an emirate’s economic department and, in practice, the great majority of free zone companies. Because the formula comes from federal law, the end of service calculation is the same in Dubai, Abu Dhabi, Sharjah and every other emirate; only DIFC and ADGM, covered below, have their own employment laws. It does not cover three groups named in Article 3(2): employees of federal and local government, members of the armed forces, police and security, and domestic workers. Each of those has its own rules, which are summarised later in this guide.

Your situationCovered by the Article 51 gratuity calculation?What applies instead
Foreign employee, mainland private company, full-time, 1 year or moreYes21/30-day formula, capped at two years’ wage
Foreign employee, full-time, less than 1 yearNo gratuityOther dues still payable: salary, leave cash, notice pay
Foreign employee, part-time or job-sharingYes, pro-ratedExecutive Regulation Art. 30 hours formula
Temporary work model, or contract under one yearNoExecutive Regulation Art. 30(2)
Free zone employee (JAFZA, DMCC, DAFZA, SAIF, RAKEZ and similar)Usually yesCheck your free zone’s employment rules and contract
DIFC employeeNoDIFC Employment Law and the DEWS savings plan
ADGM employeeNo, but ADGM’s own rule uses 21/30 daysADGM Employment Regulations 2024, section 61
Employer has joined the alternative savings schemeOnly for service before joiningCabinet Resolution 96/2023 contributions after that date
UAE national in the private sectorNoPensions and social security law (Art. 51(1))
Federal or local government employeeNoThe applicable government HR and pension law
Domestic worker (maid, driver, nanny)NoDecree-Law 9/2022 on Domestic Workers
Freelance permit holder or self-sponsored contractorNo, unless there is an employment contractYour commercial agreement

What “continuous service” means

The one-year test is about unbroken employment with the same employer, counted from the first day of work under the contract. Probation is part of that period: it is the opening stage of the same contract, and nothing in Article 51 excludes it from service. What breaks it is a genuine end of employment with a settlement paid, followed by a new start. If you are unsure about probation itself, our probation period guide covers the rules.

Days of absence without pay are not counted towards service (Article 51(4)). They do not break continuity; they simply shorten the period on which the end of service gratuity is calculated.

Much of what circulates about UAE labour law gratuity comes from the old law. These are the instruments in force on 23 September 2026; each can be read at no cost on the federal legislation portal.

InstrumentStatusWhat it says about end of service benefits
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour RelationsIn force since 2 February 2022, amended since (latest amendment listed on the portal: July 2024)Art. 1 defines basic wage; Art. 51 sets eligibility, rates, cap and deductions; Art. 52 refers other work models to the Executive Regulation; Art. 53 sets the 14-day payment deadline; Art. 54 sets the claims procedure
Cabinet Resolution No. 1 of 2022 (Executive Regulation)In forceArt. 29 lists permitted deductions and the three-month condition; Art. 30 gives the part-time formula and excludes the temporary model; Art. 19 pays unused leave on the basic wage
Federal Decree-Law No. 9 of 2024In forceAmended Art. 54: MOHRE decides claims up to AED 50,000; two-year limitation period for labour claims
Cabinet Resolution No. 96 of 2023In force (effective October 2023)Voluntary alternative end of service benefits scheme, made under Art. 51(8)
Federal Law No. 8 of 1980ReplacedThe old law, with unlimited contracts and reduced gratuity after resignation. Still quoted online; no longer applies to service ending after 2 February 2022
The words of Article 51(2)

“The foreign full-time Worker, who has completed one or more years of continuous service, is entitled to an end-of-service gratuity upon the end of his service, calculated according to the basic wage, as follows: a. The wage of twenty-one (21) days for each year of the first five years of service. b. The wage of thirty (30) days for each year in excess of that.” (Federal Decree-Law No. 33 of 2021, English text on uaelegislation.gov.ae.)

Basic wage: the figure that decides your end of service benefits

Almost every disappointment with an end of service gratuity (UAE) settlement starts here. The law defines basic wage as “the wage specified in the employment contract, which is paid to the Worker in return for his work under the employment contract, on a monthly, weekly, daily, hourly or piece-meal basis, and does not include any other allowances or benefits in kind.” Wage, by contrast, is the wider figure: basic plus cash allowances, housing, cost-of-living allowances, commissions and similar amounts.

Article 51(2) says the end of service gratuity is “calculated according to the basic wage”, and Article 51(5) says it is based on “the last basic wage received” for workers paid by the month, week or day. So the number that matters is the basic line in your contract as it stands on your last day, not your total package and not an average over the years.

Where to find your basic wage

Your MOHRE employment contract shows basic and total salary separately, and your latest salary revision letter shows any change since. Payslips usually split basic from allowances; if yours does not, ask HR in writing. Free zone contracts state the basic figure in the same way.

The allowance trap, in numbers

Two employees each earn AED 20,000 a month and each leaves after four years. The only difference is how the contract splits the package.

ItemEmployee AEmployee B
Total monthly packageAED 20,000AED 20,000
Basic wageAED 8,000AED 14,000
AllowancesAED 12,000AED 6,000
Daily basic (÷ 30)AED 266.67AED 466.67
Days earned (21 × 4)8484
GratuityAED 22,400AED 39,200

The same pay produces a gap of AED 16,800 after four years, decided entirely when the contract was drafted. That is why the basic-to-allowance split is worth negotiating at offer stage, and why a proposed cut in basic salary should be read as a cut in every year of accrued end of service gratuity, not only in the months ahead.

Commission, bonus, overtime and piece-rate pay

Commission, bonuses and overtime are “wage” but not basic wage, so they stay out unless your contract makes them part of the basic. The exception in Article 51(5) is the piece-rate worker, whose gratuity calculation uses “the average daily wage”. If you are paid by output, ask how the average was worked out.

Basic salary cut before you leave

Because the calculation uses the last basic wage, a reduction agreed shortly before exit reaches back through every year of service. A cut from AED 16,000 to AED 12,000 on eleven years and four months of service reduces the end of service gratuity from about AED 157,333 to AED 118,000. Any change to the basic wage needs your written agreement and a new contract; do not accept it as an “administrative update” without reading the effect.

Gratuity calculation step by step

Once you have the basic wage and the service dates, the gratuity calculation is mechanical. Work in this order and write each figure down, because a settlement is easiest to challenge, or to accept with confidence, when every step is visible.

StepWhat you doRule
1. Service periodLast day of the contract minus first day of work, minus days of unpaid absence. Express it in years and months (or days).Art. 51(2) and (4)
2. ThresholdIs the result one year or more? If not, stop: no end of service gratuity.Art. 51(2)
3. Daily basic wageLast monthly basic ÷ 30Art. 51(5); common practice (see note)
4. Days for years 1 to 521 × each year (and part-year) up to fiveArt. 51(2)(a) and (3)
5. Days after year 530 × each year (and part-year) beyond fiveArt. 51(2)(b) and (3)
6. Gross end of service gratuityDaily basic × total daysArithmetic
7. CapIf the total is above two years’ wage, reduce it to the capArt. 51(6)
8. DeductionsSubtract only amounts allowed by Art. 29 of the Executive Regulation, each itemisedArt. 51(7)
9. PayNet figure paid with all other dues within 14 daysArt. 53
Why divide by 30?

Article 51 does not print a divisor. The usual practice, and our tool’s, is a 30-day month (monthly basic ÷ 30). Some employers use annual basic ÷ 365, about 1.4% lower. ADGM uses 365 by its own guidance. If your figure is slightly below ours, ask which divisor was used.

How the two bands stack

The 30-day rate does not replace the 21-day rate for the whole service once you pass five years. The first five years are always valued at 21 days each, and only the years after that earn 30 days each. A ten-year employee has (21 × 5) + (30 × 5) = 105 + 150 = 255 days, not 300. Applying 30 days to all ten years is the single most common error in home-made gratuity calculation, and on a basic of AED 10,000 it overstates the entitlement by AED 15,000.

Part-years

Article 51(3) pays “parts of the year in proportion to the amount spent in work, provided that he has completed one year of continuous service”. So 14 months of service earns 21 × 14/12 = 24.5 days, not 21. After the fifth year, the fraction is paid at the 30-day rate: four months in year seven is 30 × 4/12 = 10 days.

The two-year cap

Article 51(6) says the total end of service gratuity “does not exceed two years’ wage”. At 30 days a month, two years is 720 days. The day count reaches 705 at 25 years and 720 at 25 years and 6 months, so the cap affects only people with more than about 25½ years with one employer. The law uses the word “wage” here rather than “basic wage”; most calculators and employers apply the cap as 24 months of basic wage, which is the lower and safer reading. Where a very long-serving employee’s package includes large allowances, the difference is worth raising with MOHRE before signing.

Gratuity calculation reference tables

The day count does not depend on salary. Find your completed years, read off the days, and multiply by your daily basic wage. The last column is a quick check: it converts the days into months of basic salary.

Years of serviceDays at 21Days at 30Total daysMonths of basic
1210210.7
2420421.4
3630632.1
4840842.8
510501053.5
6105301354.5
7105601655.5
8105901956.5
91051202257.5
101051502558.5
1210521031510.5
1510530040513.5
2010545055518.5
2510560070523.5
26105630735, capped at 72024.0
30105750855, capped at 72024.0

The next table turns the days into money for common basic salaries. Read the row for your basic, not your package. Figures are in AED, rounded to the nearest dirham, using basic ÷ 30.

Monthly basic2 years3 years5 years8 years10 years15 years
AED 3,0004,2006,30010,50019,50025,50040,500
AED 5,0007,00010,50017,50032,50042,50067,500
AED 8,00011,20016,80028,00052,00068,000108,000
AED 10,00014,00021,00035,00065,00085,000135,000
AED 15,00021,00031,50052,50097,500127,500202,500
AED 20,00028,00042,00070,000130,000170,000270,000
AED 30,00042,00063,000105,000195,000255,000405,000

A quick sanity check: after three years the end of service gratuity is worth about two months of basic salary, after five years three and a half months, and after ten years eight and a half months. If a settlement figure is far from that ratio, something in the inputs is wrong.

Worked examples of the gratuity calculation

Each example uses the basic wage only and a 30-day month. The arithmetic has been checked line by line.

Example 1: three years, basic AED 8,000

StepWorkingResult
Daily basic8,000 ÷ 30AED 266.67
Days21 × 363 days
End of service gratuity8,000 ÷ 30 × 63AED 16,800
Cap check63 days is far below 720Not reached

Example 2: eight years, basic AED 12,000

StepWorkingResult
Daily basic12,000 ÷ 30AED 400
Years 1 to 521 × 5105 days
Years 6 to 830 × 390 days
Total105 + 90195 days
End of service gratuity400 × 195AED 78,000

Valuing all eight years at 30 days would give AED 96,000. The AED 18,000 difference is the effect of the first five years being paid at 21 days.

You can run your own figures in our gratuity tool. Do the arithmetic once by hand as well: knowing which number goes where is what lets you check a settlement rather than simply accept it.

What counts as service, and what does not

The service period is not always the gap between your joining date and your last day. Article 51(4) takes out “the days of absence from work without pay”. Everything else that is part of the employment relationship stays in.

PeriodCounts towards end of service gratuity?Why
ProbationYesPart of the same contract from day one
Notice period, worked or on garden leaveYesArt. 43: the contract “shall remain effective” during notice
Paid annual leaveYesPaid, and part of the contract
Public holidays and paid special leaveYesPaid leave
Sick leave on full or half payYesPaid leave
Sick leave without payUsually noFalls under “absence from work without pay”; check how your employer recorded it
Unpaid leave agreed with the employer (study, personal, extended maternity)NoArt. 51(4)
Unauthorised absenceNoUnpaid absence; may also lead to dismissal under Art. 44(8)
Time on a previous contract with the same employer, never settledYesContinuous service with one employer
Time with a previous employer, settled and paidNoA new employment started

The unpaid leave arithmetic

Unpaid leave shortens the service period; it does not cancel a year. If you worked four years with two months of unpaid leave, your service is three years and ten months. On a basic of AED 8,000 that is 21 × (3 + 10/12) = 80.5 days, or AED 21,467, instead of 84 days and AED 22,400. The unpaid months cost about AED 933, not a whole year’s end of service gratuity. Keep your own record of any unpaid leave, with dates, because employers reconstructing it years later from payroll do not always get it right.

Successive contracts and group transfers

Renewing a fixed-term contract, changing work model or reissuing paperwork with the same employer does not reset the clock. A move between two companies in the same group is different: they are separate employers. Before agreeing to a transfer, get in writing either that the new company recognises your original joining date, or that the old one will pay gratuity up to the transfer date.

Gratuity after resignation, dismissal and contract expiry

This is the most argued question in UAE employment, and much of what circulates is out of date. Under the current law the answer is simple: the way the job ended does not change the formula.

Gratuity after resignation

Article 51(2) grants the end of service gratuity “upon the end of his service” to a foreign full-time worker with at least a year’s continuous service. It contains no reduction for resignation. The one-third and two-thirds figures still quoted on many websites come from the old Federal Law No. 8 of 1980, which reduced the end of service gratuity for workers who resigned from unlimited contracts before five years. That law was replaced on 2 February 2022, and Decree-Law 33 of 2021 moved all private-sector contracts to fixed terms (Article 8). So gratuity after resignation is the full amount, calculated in exactly the same way as after termination.

What resignation does change is notice. You must give the notice agreed in your contract (between 30 and 90 days under Article 43) or compensate the employer for the part not worked. Notice pay is a separate line in the final settlement and does not reduce the end of service gratuity itself. Our notice period guide covers the rules and the shorter periods that apply to resignations during probation.

How to tell an old source from a current one

If a page talks about “unlimited contracts” as a live category, or cites Law No. 8 of 1980, it describes the pre-2022 regime whatever date it shows. If it cites Decree-Law 33 of 2021 and says gratuity after resignation is reduced, it is simply wrong. Service that ended before 2 February 2022 was governed by the old law, and a claim about it may still turn on the old rules; that is a question for a lawyer.

Termination by the employer or contract expiry

Termination with notice under Article 43, an Article 42 ending such as closure, bankruptcy, death or permanent disability, or a fixed-term contract that expires and is not renewed: in each case the gratuity is due in full on the whole period of service.

Disciplinary dismissal, including Article 44

Article 39 lists the disciplinary penalties an employer may impose, and the most serious is dismissal “while preserving” the worker’s end of service gratuity. Article 44 lists the grounds for dismissal without notice after a written investigation, such as false documents, grave loss, assault, or more than 7 consecutive days of unexplained absence. It says nothing about losing the gratuity. The old law did strip it in some of these cases; the new one does not. The employer may still deduct amounts properly due, such as damage caused by the worker’s mistake, under Article 29 of the Executive Regulation.

Leaving without notice because of the employer

Article 45 lets a worker leave without notice “while retaining his rights upon termination of service” if, among other cases, the employer breaches its obligations and does not put it right after the worker has notified MOHRE 14 working days in advance, or the worker is assaulted or harassed. Follow the notification steps exactly; simply stopping work risks an absence report.

Less than one year

If service ends before one year, whether by resignation or termination, there is no end of service gratuity. Unpaid salary, cash for accrued annual leave and any notice pay remain payable.

Part-time, flexible, temporary and job-sharing work

Decree-Law 33 of 2021 introduced several work models, and Article 52 leaves the end of service gratuity for non-full-time workers to the Executive Regulation. Article 30 of that regulation sets the formula:

Executive Regulation, Article 30(1)

“The annual number of working hours stipulated in the employment contract divided by the annual number of working hours under a full-time contract, multiplied by 100 equals the percentage multiplied by the value of the end of service pay under a full-time employment contract.”

In plain terms: work out the end of service gratuity a full-time worker would get for the same service and basic, then scale it by your share of full-time hours. You need two figures from the employer: your contracted annual hours and the full-time annual hours at the same establishment.

StepWorkingResult
Hours percentage1,040 ÷ 2,080 × 10050%
Full-time gratuity, 3 years, full-time-equivalent basic AED 9,0009,000 ÷ 30 × 21 × 3AED 18,900
Part-time gratuity50% × 18,900AED 9,450

Article 30(2) adds: “The end of service pay shall not be applicable in the event of operating under a temporary employment model or if its duration is less than a year.” A temporary contract for a specific project therefore carries no end of service gratuity. The regulation does not spell out the flexible model separately; where a flexible contract sets annual hours, the same hours-ratio logic is the reasonable reading, but confirm it with MOHRE. Our guide to UAE employment contract types explains each model and how contracts are converted.

Deductions: what an employer may and may not take

Article 51(7) allows the employer to deduct “any amounts that are due by law or by a judgment”, under the conditions in the Executive Regulation. Article 29 of the regulation lists them:

  1. Amounts owed by the worker to repay loans, or amounts paid to the worker in excess.
  2. Repayment of amounts deducted for pension and insurance contributions.
  3. Amounts deducted because of violations, under the establishment’s approved list of penalties.
  4. Debts owed under a court judgment against the worker.
  5. Amounts to repair damage caused by the worker’s own mistake.

Article 29 also sets a time condition: the deduction is allowed where “a period of (3) three months has not lapsed on the amounts owed starting from the date they became due”. An old debt that the employer never pursued is not a standalone right to cut your end of service gratuity. In every case, a deduction should be identifiable, documented and linked to one of the five heads above.

Unpaid unemployment insurance (ILOE) fines are a further item: under the ILOE scheme they can be deducted from the worker’s end of service entitlements. Check your ILOE subscription and any fines before your last day.

What is not a lawful deduction

  • A figure that appears for the first time on the settlement sheet, with no agreement, penalty decision or judgment behind it.
  • The employer’s own costs of recruiting you. Article 6 prohibits the employer from charging the worker “the fees and costs of recruitment and employment” or collecting them “directly or indirectly”, and a deduction from end of service benefits is an indirect collection.
  • A “penalty for resigning” or for not giving a reason. Notice pay for notice not worked is the only lawful consequence.
  • Training costs, unless there is a written agreement that makes them repayable and the deduction fits one of the Article 29 heads.
Ask for the breakdown before you sign

Final settlements often arrive as one number with a signature line. Ask for an itemised statement showing the basic wage used, joining and leaving dates, unpaid days excluded, days in each band, the gross gratuity calculation and each deduction with its basis. A correct settlement survives that request easily. If you disagree with a figure, say so in writing before you sign, not after.

Do not sign a receipt for money you have not received. Settlement documents are sometimes presented for signature before payment clears; sign only for what you have actually been paid.

Payment: the 14-day deadline and your full end of service benefits

Article 53 is short: the employer “shall pay the Worker, within fourteen (14) days as of the date of the end of the contract, his wages and all other entitlements”. The clock starts on the day the contract ends, which is the last day of the notice period, not the day you handed in a resignation letter. It covers the end of service gratuity and every other amount you are owed.

Final settlement lineBasisCommon error
End of service gratuity21/30 days per year on last basic wage (Art. 51)Wrong basic, wrong joining date, 30 days applied to all years
Salary for days worked in the last monthFull wage to the last dayPro-rated on the wrong number of days
Unused annual leaveCash on the basic salary (Executive Regulation Art. 19)Accrued days understated; see our annual leave guide
Notice allowanceWage for notice not worked, if the employer waived it (Art. 43)Omitted, or deducted from the worker when the employer ended the contract
Overtime, commissions, allowances dueContract and payroll recordsLeft for “later” and never paid
Repatriation ticketArt. 13: employer bears the cost of return, unless you join another employer or the contract ended for a reason due to youAssumed not to apply
Less: lawful deductionsExecutive Regulation Art. 29Undocumented items

If your employer is on the Wage Protection System, the final settlement is often paid through the same bank channel as salary. Keep that account open until the money has cleared. If you must close it, give the employer written alternative bank details before your last day and ask for an acknowledgement.

End of service benefits timeline in the UAE: notice period, last day, 14-day payment deadline, MOHRE claim and two-year limit
From notice to payment: the contract runs through the notice period, the 14-day payment clock starts on the last day, and an unpaid gratuity becomes a MOHRE claim that must be brought within two years.

If your end of service gratuity (UAE) is not paid

An unpaid or underpaid end of service gratuity is a labour claim like any other unpaid entitlement. The route is set by Article 54 as amended by Decree-Law 9 of 2024 and by Ministerial Resolution No. 47 of 2022 on labour complaints.

  1. Put it in writing. Email the employer with your gratuity calculation, the basic wage and service dates you used, and the Article 53 deadline. Keep it factual. The email is your dated record.
  2. File a MOHRE complaint once the 14 days have passed, through the MOHRE app, website, a Tasheel or Tawjeeh centre, or the call centre on 600590000. Our step-by-step guide to filing a MOHRE complaint covers the channels, documents and stages.
  3. Amicable settlement. MOHRE first tries to settle the dispute between the parties.
  4. MOHRE decision or court. Where the claim is up to AED 50,000, MOHRE decides it and its decision is enforceable, subject to appeal to the court. Larger claims, and claims MOHRE cannot settle, are referred to the labour court.
  5. Time limit. A labour claim must be brought within two years of the end of employment. Do not wait.

If the employer has collapsed, the workers’ protection insurance under Ministerial Resolution 318 of 2022 can pay up to AED 20,000 per worker for entitlements under the Labour Law when the employer fails to pay, once there is a MOHRE decision or court ruling. It does not replace the claim; it is a floor under it.

If your salary itself has also stopped, read what to do when salary is not paid first. If the employer has disappeared and will not cancel your visa either, the route is in our guide to visa cancellation without the sponsor. And if you would rather hand the whole claim over, that is what our labour claims service does.

Do not stop going to work over an end of service gratuity dispute

End of service gratuity is paid after the contract ends. A disagreement about it is not a reason to stop attending during notice. More than seven consecutive days of unexplained absence allows the employer to file an absence report and to dismiss under Article 44(8). If the employer is in breach, use the Article 45 procedure instead.

Evidence to collect before your last day

Access to email and HR systems usually ends on the last day. Send yourself the signed contract, every salary revision letter, the last twelve payslips, proof of your joining date, leave records (especially unpaid leave), the resignation or termination letter, and any settlement statement.

Day 14 has passed and nothing has been paid? We can draft the letter to your employer, file the MOHRE claim and keep your visa file safe while it runs. Our fee is quoted in writing first.

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The alternative end of service benefits scheme (Cabinet Resolution 96 of 2023)

Article 51(8) lets the Cabinet approve “other alternative systems” to the lump-sum gratuity. It did so with Cabinet Resolution No. 96 of 2023, the voluntary alternative end of service benefits scheme, which took effect in October 2023. Under it, an employer pays a monthly contribution into an approved investment fund instead of owing a lump sum at the end. MOHRE announced it as a way to let workers’ end of service benefits earn investment returns.

FeatureWhat Cabinet Resolution 96/2023 and MOHRE say
Who decides to joinThe employer. The scheme is voluntary for private-sector employers, and mandatory for the workers the employer enrols (Arts. 3 and 10)
Employer contribution5.83% of the monthly basic wage for workers with up to five years’ service; 8.33% for workers with more than five years (Art. 6). The same percentages apply to part-time workers on their adjusted basic
Worker’s own top-upOptional extra contributions, reported by MOHRE as up to about 25% of total annual wage, withdrawable under the fund’s terms (Art. 7)
Gratuity earned before joiningPreserved. The employer calculates it on the wage at the date of joining and pays it when employment ends (Art. 5)
Investment optionsCapital-guaranteed, risk-based portfolios and Sharia-compliant funds (Art. 8)
Payment at the endWithin 14 days of the end of employment (Art. 9)
Approved administrators listed by MOHREGhaf Benefits, Daman Investments, National Bonds and First Abu Dhabi Bank (MOHRE guidance page, checked 23 September 2026)
Financial free zonesTheir own regulators set their own rules (Art. 10)

The contribution rates are the monthly equivalent of the statutory formula: 21 days ÷ 360 days is 5.83%, and 30 ÷ 360 is 8.33%. If your employer has enrolled you, your settlement has two parts: the lump-sum gratuity for service up to the joining date, calculated as in this guide, and the fund balance for the period after. Ask for statements from the fund, and check that the pre-joining gratuity was calculated and recorded when you were enrolled.

DIFC, ADGM and other free zones

Most free zone companies employ staff under the federal Labour Law, with the contract and permit issued by the free zone authority rather than MOHRE. Everything in this guide applies to them unless the free zone’s own employment rules say otherwise, so check your contract and your free zone’s regulations. Two free zones, the financial centres, have their own employment laws and a different end of service system. If you are weighing a free zone job against a mainland one, our free zone versus mainland guide sets out the wider differences.

DIFC: the DEWS savings plan

Since 1 February 2020, DIFC employers have paid monthly contributions into a qualifying workplace savings scheme (DEWS) instead of accruing a lump sum: at least 5.83% of basic wage for the first five years and 8.33% after. Employees may add voluntary contributions. Gratuity earned up to 31 January 2020 is kept and paid at exit or transferred into the plan. A DIFC leaver therefore receives the plan balance plus any pre-2020 gratuity, not an Article 51 calculation.

ADGM: its own end of service gratuity rule

The Abu Dhabi Global Market has its own Employment Regulations 2024. ADGM’s published guidance on section 61 says an employee with one year or more of continuous employment is entitled to end of service gratuity “regardless of the reason for termination”, at 21 days’ basic wage for each of the first five years and 30 days’ basic wage for each additional year, on the basic wage at the termination date. Two differences matter: the daily rate is worked out by dividing by 365 rather than by 30, and final dues must be paid within 21 calendar days rather than 14. The entitlement does not apply to UAE or GCC nationals enrolled in the federal pension scheme, or to employees who have chosen a pension or savings scheme instead.

PointMainland and most free zonesDIFCADGM
LawDecree-Law 33/2021DIFC Employment Law No. 2 of 2019ADGM Employment Regulations 2024
How it is paidLump sum at the end (or alternative scheme if the employer joins)Monthly contributions to DEWS or another qualifying schemeLump sum, unless employee is in a pension or savings scheme
Rate21 days a year to 5 years, 30 after5.83% of basic a month to 5 years, 8.33% after21 days a year to 5 years, 30 after
Minimum service1 yearContributions from the start1 year
Daily rateBasic ÷ 30 in common practiceNot applicableBasic ÷ 365 (ADGM guidance)
Final dues deadline14 days (Art. 53)Set by the DIFC Employment Law; check the current text21 calendar days
Where to complainMOHRE, then labour courtDIFC CourtsADGM Employment Affairs Office and ADGM Courts

Domestic workers, UAE nationals and government employees

Domestic workers

Domestic workers are outside the Labour Law (Article 3(2)) and are governed by Federal Decree-Law No. 9 of 2022. Article 22 lets the Cabinet approve how their end of service gratuity is calculated and paid, and Article 19(2) requires all dues within 10 days of the agreement ending. An ILO briefing updated in May 2024 recorded that the detailed calculation rules had not yet been set, and we have not found a later published decision. Households should confirm the current method with MOHRE before settling. Sponsoring a worker is covered by our domestic worker visa service.

UAE nationals

Article 51(1) says an Emirati worker’s end of service benefit is governed by “the legislation regulating pensions and social security in force in the State”. An Emirati in the private sector is registered with the pension authority, and the pension system, not the 21/30-day gratuity calculation, provides the end of service benefit. GCC nationals working in the UAE are usually covered by their own country’s pension scheme through the GCC extension arrangements.

Government employees

Federal and local government employees are excluded by Article 3(2). Their end of service benefits come from the government HR and pension legislation that applies to their employer, and complaints go through that employer, not MOHRE. Semi-government companies licensed as private establishments are usually under the Labour Law; check who issued your work permit.

Special situations

Death in service

The contract ends on the worker’s death (Article 42(5)). The gratuity and other dues pass to the legal heirs under the applicable succession rules, usually on production of the court’s inheritance documents. A representative holding the heirs’ power of attorney can follow the file with the employer and MOHRE.

Company closure, bankruptcy or an owner who has left

Permanent closure and insolvency end the contract under Article 42(7) and (8), but the end of service gratuity is still owed. It becomes a claim rather than a payment. File with MOHRE promptly, because you may be one of many claimants against limited assets, and the workers’ protection insurance (up to AED 20,000) may be the fastest money you see. If the company is being liquidated, the liquidation process in Dubai is covered by our company liquidation service.

Leaving the UAE before you are paid

You do not lose the end of service gratuity by leaving the country. But claims are harder to run from abroad, and your residence must still be cancelled. Before you go, check that your work permit and residence cancellation are in hand; our guide to cancelling an employment visa explains the normal sequence. If you have already left, a MOHRE claim can be filed and followed through a representative under power of attorney.

Settlement or cancellation held back

Payment is due within 14 days whatever the state of the paperwork, and cancellation is a separate duty of the employer. Neither can lawfully be made conditional on the other. If an employer ties them together, raise it with MOHRE rather than signing a figure you disagree with, and watch your residence grace period.

Is end of service gratuity taxed in the UAE?

No. The UAE does not levy personal income tax, and the Ministry of Finance’s corporate tax FAQ states that “UAE Corporate Tax does not apply on the salary and wages derived by employees in consideration for their services under an employment contract, including all allowances and bonuses.” An end of service gratuity is paid under the employment contract, so it reaches you without UAE tax.

Your home country may be different. If you are moving back to a country that taxes foreign income, take advice there before the money arrives.

For employers: getting end of service benefits right

End of service gratuity is an accruing liability that is paid in one sum, often years later, so provision for it monthly.

ItemWorking
Monthly accrual, first five yearsBasic × 21 ÷ 360, or about 5.83% of basic a month
Monthly accrual, after five yearsBasic × 30 ÷ 360, or about 8.33% of basic a month
Example: 20 staff, average basic AED 9,000, all under five years20 × 9,000 × 5.83% ≈ AED 10,500 a month, about AED 126,000 a year

Keep a monthly schedule per employee (joining date, current basic, unpaid days, days accrued, value at today’s basic) and keep the signed contract, every salary revision letter and the unpaid-leave register. Those three records decide most disputes.

Give every leaver an itemised settlement statement; it prevents most complaints. Companies that use our PRO services in Dubai can hand us the settlement, the MOHRE cancellation and the residence cancellation as one job.

Checking your own settlement in ten minutes

You do not need a lawyer for a first check. Work through these in order.

#CheckWhat to look for
1Basic wage usedMatches your contract and latest revision letter, not the package
2Joining dateYour first working day, not the date probation ended
3Last dayThe end of the notice period, not the resignation date
4Unpaid daysOnly genuine unpaid absence, with dates you recognise
5Bands21 days for years 1 to 5, 30 days after; not one rate throughout
6Part-yearIncluded, at the right band’s rate
7RatioRoughly 2.1 months of basic at 3 years, 3.5 at 5, 8.5 at 10
8DeductionsEach one itemised and linked to an Article 29 head
9Other linesLeave cash, notice allowance, last month’s salary, ticket where due
10DatePaid within 14 days of the last day

If something is wrong, write to HR with your own figures before signing. Most discrepancies are errors, not positions, and are corrected at that stage. Where it is a position, you now have a dated objection, which helps if the matter goes to MOHRE.

End of service gratuity UAE: six cases, worked through

These cases are built from the situations we see most often. Names and identifying details are left out, and the figures are the published ones.

1. Sales executive who resigned after four years and was offered two-thirds

Joined in March 2022, resigned in February 2026 and worked 30 days’ notice, leaving in March 2026. Package AED 18,000 a month, basic AED 7,000. No unpaid leave. HR’s settlement sheet showed end of service gratuity of AED 13,067, “two-thirds because you resigned”.

LineWorkingAED
Service4 years exactly, notice includedn/a
Days21 × 484 days
End of service gratuity7,000 ÷ 30 × 8419,600
OfferedTwo-thirds of 19,60013,067
Shortfall19,600 − 13,0676,533

What happened: the reduction came from the old law. A short email quoting Article 51(2) and Article 74 (the new law in force from 2 February 2022), with the calculation, was enough for HR to reissue the settlement at AED 19,600.

2. Operations manager with eleven years, a recent pay rise and a month of unpaid leave

Eleven years and five months’ service, with one month of unpaid leave in year six. Basic raised from AED 12,000 to AED 16,000 two years before exit. The employer calculated on an average basic “to be fair”.

LineWorkingResult
Net service11 years 5 months − 1 month11 years 4 months
Years 1 to 521 × 5105 days
Years 6 to 1130 × 6180 days
Four months30 × 4 ÷ 1210 days
Total105 + 180 + 10295 days
Gratuity on last basic16,000 ÷ 30 × 295AED 157,333

The point: Article 51(5) uses the last basic wage received, not an average. The unpaid month cost 2.5 days (about AED 1,333), not a month’s gratuity.

3. Administrator terminated at fourteen months: “you were only confirmed eight months ago”

Six months’ probation, then eight more months. Terminated by the employer with notice. Basic AED 4,500. The employer said there was no end of service gratuity because service ran from confirmation.

The working: service runs from the first day, so it is 14 months, over the one-year threshold. Days are 21 × 14 ÷ 12 = 24.5, at AED 150 a day, giving AED 3,675. The part-year is payable because the first year was complete (Article 51(3)).

4. Part-time designer on 20 hours a week for three years

Contracted 1,040 hours a year; full-time staff at the same company work 2,080. Full-time-equivalent basic AED 9,000. The employer said part-timers get no end of service gratuity.

The working: Executive Regulation Article 30(1) applies. The full-time gratuity calculation for three years is 9,000 ÷ 30 × 63 = AED 18,900; the hours ratio is 50%; the part-time gratuity is AED 9,450. The contract was not temporary and ran for more than a year, so Article 30(2) did not exclude it.

5. Warehouse supervisor dismissed under Article 44 after an absence

Six years’ service, basic AED 11,000. Dismissed without notice after eight consecutive days of unexplained absence, following a written investigation. The employer withheld all end of service benefits.

The working: Article 44(8) allowed the dismissal but does not remove the end of service gratuity. The eight unpaid days come out of service: 105 + 30 × (1 − 8/360) ≈ 134.3 days at AED 366.67, so about AED 49,256 instead of nothing. A MOHRE claim recovered it.

6. Accountant whose employer closed and stopped answering

Five years and six months’ service, basic AED 9,000. The owner left the UAE, the office closed, and nothing was paid. The worker’s visa was still active.

The working: (21 × 5) + (30 × 0.5) = 120 days at AED 300 a day gives AED 36,000, plus leave cash and the last month’s salary. The claim was under AED 50,000, so MOHRE could decide it. The work permit was cancelled through the MOHRE complaint route without the employer, then the residence, and the worker claimed up to AED 20,000 from the workers’ protection insurance once MOHRE’s decision issued; the balance stayed a debt of the employer.

Recognise your situation in one of these cases? Send us the contract and the settlement sheet. We will tell you what the law gives you, what the employer can lawfully deduct, and the quickest route to getting paid.

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What circulates online that is not true

ClaimWhat the law says
“If you resign before five years you get only one-third or two-thirds.”That was the old law for unlimited contracts. Decree-Law 33/2021 has no reduction for resignation.
“Gratuity calculation uses your full salary.”Basic wage only; the definition in Article 1 excludes allowances.
“After five years you get 30 days for every year.”The first five years stay at 21 days; only later years earn 30.
“Probation does not count.”Service runs from the first day of the contract.
“Dismissed employees lose their end of service benefits.”Articles 39 and 44 do not remove it. Only lawful deductions under Article 29 of the Executive Regulation can reduce it.
“Part-timers are not entitled.”They are, pro-rated by hours (Executive Regulation Art. 30). Only the temporary model is excluded.
“The employer can pay whenever the visa is cancelled.”Article 53 sets 14 days from the end of the contract.
“Unpaid leave cancels the year.”Only the unpaid days come out of service.
“Free zone staff get no end of service gratuity.”Most free zones apply the federal rules. DIFC and ADGM have their own systems, which still provide end of service benefits.
“End of service gratuity is taxed.”Not in the UAE. Your home country may be different.

How to verify every figure in this guide

PointWhere to check it
21/30 days, one-year threshold, part-years, unpaid absence, last basic wage, cap, deductions, alternative systemsDecree-Law 33/2021, Article 51, uaelegislation.gov.ae
Definition of basic wageDecree-Law 33/2021, Article 1
Who is excluded (government, armed forces, domestic workers)Decree-Law 33/2021, Article 3
14-day payment deadlineDecree-Law 33/2021, Article 53
MOHRE decides claims up to AED 50,000; two-year limitDecree-Law 33/2021, Article 54 as amended by Decree-Law 9/2024
Deduction heads and three-month conditionCabinet Resolution 1/2022, Article 29
Part-time formula; temporary model excludedCabinet Resolution 1/2022, Article 30
Leave cash on basic salaryCabinet Resolution 1/2022, Article 19
Alternative savings scheme, 5.83% and 8.33%Cabinet Resolution 96/2023; MOHRE guidance page
DIFC DEWSDIFC Employment Law No. 2 of 2019 and DIFC Authority
ADGM rule, 365-day divisor, 21-day paymentADGM Employment Affairs Office guidance on the Employment Regulations 2024
Domestic workers’ 10-day payment and Cabinet powerDecree-Law 9/2022, Articles 19 and 22
No tax on employment incomeMinistry of Finance corporate tax FAQ
Workers’ protection insurance up to AED 20,000u.ae insurance page; MOHRE news on Ministerial Resolution 318/2022

What we will and will not do

We will check your settlement against the law before charging for anything else, show you our gratuity calculation step by step, draft the written request to your employer, file and follow a MOHRE claim, handle the work permit and residence cancellation in the right order, act for you under power of attorney if you have left the UAE, and tell you plainly when a case needs a lawyer.

We will not promise an outcome that MOHRE or a court decides, inflate a claim with amounts the law does not give you, advise you to stop going to work to put pressure on an employer, or charge a fee that was not quoted to you in writing first.

Want your end of service gratuity and final settlement checked before you sign, or a claim handled from start to finish? WhatsApp us. Government fees at cost, our fee in writing before we start.

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End of service gratuity UAE: frequently asked questions

How is end of service gratuity calculated in the UAE?

Take your last monthly basic wage and divide by 30 for a daily rate. Multiply by 21 for each of your first five years of service and by 30 for each year after that, including part-years in proportion. The total cannot exceed two years’ wage. Allowances are not included. This is Article 51 of Federal Decree-Law No. 33 of 2021, and it applies to foreign full-time workers in the private sector with at least one year’s continuous service.

Do I get gratuity after resignation?

Yes, in full, if you have completed at least one year of continuous service. The current law grants the end of service gratuity “upon the end of his service” with no reduction for resignation. The one-third and two-thirds cuts come from the old Federal Law No. 8 of 1980 and its unlimited contracts, which no longer apply to service ending after 2 February 2022. Resigning affects your notice obligations, not the gratuity calculation.

Is end of service gratuity (UAE) paid on basic or total salary?

Basic salary. The law defines basic wage as the contract wage without “any other allowances or benefits in kind”, and Article 51 bases the gratuity calculation on the last basic wage you received. Housing, transport, telephone and other allowances, bonuses and commission are left out unless your contract makes them part of the basic figure. Check your MOHRE contract and latest salary revision letter for the basic amount.

How much end of service gratuity will I get after 5 years?

After exactly five years you have earned 21 × 5 = 105 days of basic wage, which is three and a half months of basic salary. On a basic of AED 10,000 that is 10,000 ÷ 30 × 105 = AED 35,000. The 30-day rate starts only with the sixth year, so after six years the figure becomes 135 days, or AED 45,000 on the same basic.

Do I get gratuity if I worked less than one year?

No. Article 51 requires one year or more of continuous service. If your employment ends before that, whether you resign or are terminated, no end of service gratuity is due. You are still owed your salary to the last day, cash for accrued but unused annual leave, and notice pay where it applies. Once you pass one year, part-years are paid in proportion.

Does probation count towards end of service gratuity?

Yes. Probation is the first stage of the same employment contract, so service is counted from your first working day, not from the date you were confirmed. Someone with six months’ probation and eight further months has fourteen months of service and is entitled to end of service gratuity for 14 months: 21 × 14 ÷ 12 = 24.5 days of basic wage.

Does unpaid leave reduce my gratuity?

Yes, but only by the unpaid days. Article 51(4) says days of absence without pay are not counted as service. Two months of unpaid leave over four years leaves three years and ten months of service. The effect is proportionate: on a basic of AED 8,000 it reduces the end of service gratuity from AED 22,400 to about AED 21,467. Paid annual leave and paid sick leave still count.

Can my employer deduct money from my end of service benefits?

Only amounts due by law or a court judgment, under Article 29 of the Executive Regulation: loan repayments or overpaid sums, pension and insurance contributions, penalties under the approved penalty list, court-ordered debts, and damage caused by your own mistake. The amount must not have been due for more than three months. Recruitment costs cannot be charged to you (Article 6). Ask for every deduction itemised before you sign.

When must my employer pay my end of service benefits?

Within 14 days of the date the contract ends, together with all your other wages and entitlements (Article 53). The contract ends on the last day of your notice period, not the day you resigned. If the money has not arrived after 14 days, write to the employer with your calculation, then file a MOHRE complaint. Labour claims must be brought within two years.

What if my employer refuses to pay my end of service gratuity?

File a complaint with MOHRE through its app, website, a Tasheel or Tawjeeh centre, or 600590000. MOHRE first tries to settle. For claims up to AED 50,000, MOHRE decides and its decision is enforceable; larger claims go to the labour court. If the employer has collapsed, workers’ protection insurance can pay up to AED 20,000 per worker once there is a decision. Keep attending work during notice while this runs.

Do part-time workers get gratuity in the UAE?

Yes. Article 30 of the Executive Regulation pro-rates it by hours: your contracted annual hours divided by full-time annual hours gives a percentage, which is applied to the end of service gratuity a full-time worker would receive for the same service. Someone on half the full-time hours gets half the full-time gratuity. The temporary work model, and contracts under a year, carry no end of service gratuity.

Are end of service benefits different in DIFC and ADGM?

Yes. DIFC employers have paid monthly contributions into the DEWS savings plan since February 2020 (5.83% of basic for the first five years, 8.33% after), so there is no lump-sum calculation for later service. ADGM uses 21 and 30 days like the mainland, but divides by 365 for the daily rate and requires final dues within 21 days. Other free zones generally follow the federal law.

Are domestic workers entitled to gratuity?

Domestic workers are outside the Labour Law. Federal Decree-Law No. 9 of 2022 gives the Cabinet power to set how their end of service gratuity is calculated and paid (Article 22) and requires all dues within 10 days of the contract ending (Article 19). An ILO briefing in May 2024 noted the detailed calculation rules had not been set. Households should confirm the current method with MOHRE before settling.

Is end of service gratuity taxable in the UAE?

No. There is no personal income tax, and the Ministry of Finance states that corporate tax does not apply to salary and wages earned under an employment contract, including allowances and bonuses. End of service gratuity is paid under the contract, so it is not subject to UAE tax. Your home country may tax it if you become resident there again, so check before the payment arrives.

Can MIRDXB PRO check my end of service gratuity and final settlement?

Yes. Send us your contract, latest payslip, joining date, last working day and the settlement sheet on WhatsApp. We rebuild the calculation from the law, compare it line by line with your employer’s figures and tell you in writing what is right and what is not. If everything is correct, we say so. Our fee is quoted in writing before we start.

Can you file a claim for my unpaid gratuity if I have already left the UAE?

Yes, in most cases. We can prepare the claim and follow it with MOHRE under a power of attorney you issue abroad, and deal with your work permit and residence cancellation at the same time. Government fees are passed on at cost with receipts, and our own fee is agreed in writing. If the claim needs a lawyer, for example a large court case, we will tell you.

Checking end of service gratuity (UAE) settlements, filing claims for unpaid end of service benefits and closing the visa file properly is what our PRO services in Dubai team handles.

Update, 23 September 2026

This guide was rewritten and re-checked against the legislation. Changes from the previous version: the unpaid-gratuity route now reflects Article 54 as amended by Decree-Law 9 of 2024 (MOHRE decides claims up to AED 50,000; two-year limitation), where the old text said failed settlements always go to court; deductions now follow the five heads and three-month condition in Article 29 of the Executive Regulation; the temporary-work exclusion in Article 30(2) and the Article 44 dismissal position were added; the statement that the MOHRE call centre also runs WhatsApp on the same number was removed because we could not confirm it; and new sections cover the alternative savings scheme, DIFC, ADGM, domestic workers, nationals and tax.

Please note. This guide sets out the end of service gratuity rules as written in Federal Decree-Law No. 33 of 2021, its Executive Regulation, Cabinet Resolution No. 96 of 2023, Decree-Law No. 9 of 2022 and the published rules of DIFC and ADGM, verified on 23 September 2026. Laws and official guidance change, and MOHRE, the free zone authority or the court decides each case on its facts. The English texts quoted are the official translations published on uaelegislation.gov.ae; the Arabic text prevails. The cases are built from common situations and are illustrative, not the records of named clients. This guide is not legal advice; for a disputed or large claim, speak to a lawyer.

Mir Ali

Written by

Mir Ali

Mir Ali founded MIRDXB PRO, a PRO and visa services firm in Al Barsha, Dubai. Over the past three years he has personally handled more than 100 visa, Emirates ID, labour and company files across MOHRE, GDRFA, ICP and DET, and he reviews every guide on this site against those real cases.

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