Understanding End-of-Service Gratuity in the UAE | labeeb.ae

 

What is End-of-Service Gratuity?

If you’re working in the UAE, the lump-sum payment known as end-of-service gratuity is an essential part of your employment rights. Under the 2025 Ministry of Human Resources and Emiratisation (MOHRE) updates, this benefit ensures employees receive fair compensation when leaving a job.

Read the full article on Labeeb.ae

---

Eligibility

You become eligible for gratuity after completing one full year of continuous service with your employer. It’s a legal entitlement that applies to both limited and unlimited contracts, unless otherwise stated by your company’s policy or free zone regulations.

---

Calculation Method (2025 Update)

Gratuity is calculated based only on your basic salary — allowances, commissions, and bonuses are excluded.

• For the first 5 years of service → 21 days’ basic salary per year

• For service beyond 5 years → 30 days’ basic salary per year

Partial years are calculated proportionally. Employers are legally required to settle gratuity within 14 days of an employee’s final working day.

👉 Learn more: End-of-Service Calculation Guide – Labeeb.ae

---

Important Considerations

• Contract Type: Whether your contract is limited or unlimited affects your calculation.

• Free Zones: Some free zones (like DIFC or ADGM) have their own pension-style schemes.

• Resignation vs Termination: The reason for leaving can influence the final amount.

If your employer delays or disputes payment, you can file a complaint with MOHRE, but it’s advisable to review your contract and calculate your expected entitlement beforehand.

---

Final Advice

Keep a record of your employment contract, salary slips, and service period to ensure an accurate calculation. Maintaining professionalism during your exit process can help resolve matters smoothly and preserve your reputation.

---

Get Expert Help from Labeeb.ae

For professionals in Dubai and across the UAE, Labeeb Writing & Designs offers complete career and document support — from reviewing contracts and final settlements to crafting ATS-optimized CVs, cover letters, and LinkedIn profiles.

📞 Visit: www.labeeb.ae
📧 Email: info@labeeb.ae