Employment Gratuity (End of Service)
مكافأة نهاية الخدمة
Employment gratuity, or end-of-service benefit, is a lump sum that UAE private-sector employers must pay to employees who complete at least one year of continuous service. Under Federal Decree-Law 33 of 2021 on the regulation of labour relations, the calculation is: 21 days of basic wage for each of the first five years of service, plus 30 days of basic wage for each additional year, capped at two years' total wages. The basic wage used for the calculation excludes housing, transport, and other allowances. Deductions are permitted only for amounts the employee owes the employer. Gratuity must be paid within 14 days of contract termination; late payment exposes the employer to fines and interest. DIFC and ADGM have their own separate regimes.
Also in
مكافأة نهاية الخدمة هي مبلغ إجمالي يلتزم صاحب العمل في القطاع الخاص بالإمارات بدفعه للعامل الذي أكمل سنة واحدة على الأقل من الخدمة المتصلة. وفق المرسوم بقانون اتحادي رقم 33 لسنة 2021 بشأن تنظيم علاقات العمل، تُحتسب المكافأة على أساس: 21 يوماً من الأجر الأساسي عن كل سنة من السنوات الخمس الأولى، ثم 30 يوماً من الأجر الأساسي عن كل سنة إضافية، بسقف أقصى يعادل أجر سنتين. ويُستخدم الأجر الأساسي في الاحتساب دون بدلات السكن أو النقل وغيرها. ولا تُسمح الخصومات إلا بقدر ما على العامل للمنشأة. يجب سداد المكافأة خلال 14 يوماً من انتهاء العقد، وإلا تعرّض صاحب العمل لغرامات وفوائد تأخير. ولمركزي دبي المالي وأبوظبي الغلوبال ماركت نظامان مستقلان.
Related terms
Execution
Execution is the stage at which a final judgment, an arbitral award, a notarised agreement with executory force, or a re
Emirates ID
The Emirates ID is the national identity card issued by the Federal Authority for Identity, Citizenship, Customs and Por
Labor Ban
A labour ban in the UAE is an administrative or judicial restriction that prevents a worker from taking up new employmen
Labour Court
The Labour Court is the specialised judicial chamber that hears employment disputes in the UAE, organised within each em
Absconding Case
An absconding case (bulaq taghayyub) is a formal report filed by a UAE employer or sponsor with the Ministry of Human Re
ADGM (Abu Dhabi Global Market)
The Abu Dhabi Global Market (ADGM) is an international financial centre located on Al Maryah Island with an independent
Related legislation
Cabinet Resolution No (106) Of 2022 Concerning The Executive Regulations Of Federal Decree-Law No. (9) Of 2022 On Domestic Workers
Law No. (21) of 2008 Concerning Pensions and Social Insurance of Local Paramilitary Personnel of the Government of Dubai
Cabinet Resolution No. (46) of 2019 Regarding the System of Insurance Benefits Exchange Between Retirement Funds Applicable in the State
Need advice on this?
Contact a verified UAE lawyer specialised in this area, or ask the AI assistant first.