How to get your end-of-service gratuity on time
Article 53 of the UAE Labour Law requires the employer to pay the worker’s wages and all entitlements within 14 days of the contract ending. These steps help you secure the payment:
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Step 1: Check your basic salary
Gratuity is calculated on your last basic wage as stated in your contract. Housing, transport and other allowances are not included unless your contract makes them part of the basic wage.
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Step 2: Ask for a written settlement
Request a written breakdown showing unpaid salary, any leave encashment and the gratuity amount, and check it against your own calculation.
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Step 3: Count the 14 days
Count from the date your contract ended. Keep the termination or resignation letter that shows the end date.
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Step 5: Follow the complaint through
MOHRE first tries to settle the dispute amicably. If it cannot be settled, the case can be referred to the labour courts.
How UAE end-of-service gratuity is calculated
Under Article 51 of Federal Decree-Law No. 33 of 2021, a full-time private-sector worker who completes at least one year of continuous service is entitled to gratuity.
First five years: 21 days of basic wage for each year of service.
After five years: 30 days of basic wage for each additional year.
Cap: total gratuity cannot exceed two years’ wages. Days of unpaid absence are not counted in the service period.
Do not sign a full-settlement statement early
Some employers ask departing workers to sign a statement that all entitlements have been received before the money is paid. Wait until the funds have arrived before signing, or note in writing what is still outstanding. A signed acknowledgement can make a later claim harder to prove.
Frequently asked questions
Can my employer deduct money from my final dues? Only in the cases the Labour Law allows, such as recovering a loan or advance. Under the executive regulations, loan deductions are generally limited to 20% of the wage, and total deductions to 50%. Ask for any deduction to be itemised in writing.
What if my employer says it has cash-flow problems? The 14-day deadline in Article 53 does not contain an exception for cash-flow difficulties. If payment is late, you can file a complaint.
Is gratuity taxed? The UAE does not levy personal income tax on salaries or end-of-service gratuity.
