How does end-of-service gratuity work in the UAE?
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Short answer: As a general rule, employees who complete at least one year are entitled to a gratuity based on their basic salary and length of service, with longer service earning more, up to an overall cap. Confirm your exact entitlement.
The general framework
Under the UAE Labour Law, end-of-service gratuity is calculated on your basic salary (not allowances) and your length of continuous service. As a general rule, more years of service earn a higher gratuity, and the total is capped. Less than a full year of service usually means no gratuity.
What affects your figure
- Your basic salary, not your total package.
- Total years (and partial years) of continuous service.
- How the contract ended (resignation vs termination can matter in some cases).
- Any unpaid amounts that should be settled alongside it.
Exact day-rates and rules change and depend on your contract — ask a lawyer or check the current law for your specific figure before relying on a number.
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