End-of-Service Benefits for Private Sector Workers in Dubai

How end-of-service benefits work

1. 1

   Know which rule applies to you

   For expatriate workers in the private sector, end-of-service benefits are set by Article 51 of the UAE Labour Law. A worker who has completed at least 1 year of continuous service is entitled to gratuity upon termination. For UAE nationals working in the private sector, benefits follow the legislation regulating pensions and social securities in the UAE instead.

   Documents:Employment contractPassport or Emirates ID
2. 2

   Understand what your gratuity is based on

   The end-of-service gratuity is calculated on the basis of the last wage the worker was entitled to, namely the basic salary. Allowances outside the basic salary are not part of this base, so check exactly what your contract lists as basic salary.

   Documents:Salary breakdownPay slips
3. 3

   Check your qualifying service period

   Days of absence from work without pay are not included in the calculation of the period of service. If a worker has served for less than 1 year, he is not entitled to any gratuity pay. End-of-service gratuity also does not apply in cases of temporary employment if the duration is less than one year.

   Documents:Leave and attendance record
4. 4

   See if the savings scheme applies to you

   The savings scheme serves as an optional alternative to the traditional end-of-service gratuity system currently applied in the private sector. It aims to ensure that employees receive their end-of-service entitlements and to protect them from inflation, employer insolvency and bankruptcy. Once employees are enrolled, the employer must cease to apply the traditional gratuity system for them, and must calculate and settle any gratuity accrued prior to enrolment, in accordance with the law.

   Documents:Enrolment confirmation
5. 5

   For part-time and other contract types

   The entitlement can be worked out as a percentage, which is then multiplied by the value of the end-of-service benefit due for the full-time contract. Because the exact figures and formulas can change, confirm the current amounts and thresholds on the authority's website before you rely on any calculation.

Fees and timelines may change, verify with the official source.

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