How is end-of-service gratuity calculated in the UAE?

Gratuity equals 21 days' basic salary per year for the first 5 years, then 30 days' basic salary per year beyond that. The total cannot exceed 2 years' wages . Only basic salary counts — not allowances.

Can my employer terminate me without notice in the UAE?

Only in cases of gross misconduct listed under Article 44 — such as fraud, assault, or reporting to work intoxicated. Otherwise, your employer must provide the contractual notice period, which is minimum 30 days .

How many days of annual leave am I entitled to in the UAE?

After one year of service, you get 30 calendar days of paid annual leave. Between 6 months and 1 year , you're entitled to 2 days per month . Leave under 6 months depends on your contract terms.

What should I do if my employer delays my salary in the UAE?

File a complaint through the MOHRE app or call 800-60 . Salary delayed beyond 15 days triggers automatic alerts in the Wage Protection System . MOHRE can impose fines and suspend the employer's work permit applications.

Is there a minimum wage in the UAE?

The UAE does not have a universal minimum wage for private-sector workers. However, MOHRE sets minimum salary thresholds for specific visa categories and skill levels. Domestic workers have separate minimum pay standards under Federal Decree-Law No. 9 of 2022 . The most important thing you can do as an employee in the UAE is know your rights before you need them . Download the MOHRE app, review your registered contract, and calculate your gratuity today. Whether you're starting a new role or planning an exit, informed employees consistently receive their full entitlements. Take 10 minutes this

UAE Labour Law 2024: Employee Rights & Entitlements

The UAE Labour Law 2024, governed by Federal Decree-Law No. 33 of 2021, protects over 5.5 million private-sector workers across the Emirates. Every employee — whether expat or Emirati — is entitled to specific rights covering wages, leave, gratuity, and termination. One detail most workers overlook: since February 2022, all employment contracts in the UAE must be limited-term (fixed-term), with a maximum duration of 3 years, renewable. This single change reshaped how termination, notice periods, and gratuity work. Understanding these rights can save you thousands of dirhams and protect your career. Use an online calculator to estimate your gratuity and other entitlements quickly.

What Is the UAE Labour Law?

The UAE Labour Law is the federal legislation that regulates the relationship between employers and employees in the private sector. The current version — Federal Decree-Law No. 33 of 2021 — replaced the older Federal Law No. 8 of 1980 and took effect on 2 February 2022.

This law is enforced by the Ministry of Human Resources and Emiratisation (MOHRE). It covers everything from minimum wages for certain categories to working hours, leave entitlements, and end-of-service benefits. Free zone employees may fall under their specific free zone authority, but most provisions still apply.

The law does not cover domestic workers, federal government employees, or armed forces personnel. These groups have separate legislation. If you work in the private sector on a MOHRE-issued work permit, this law applies directly to you.

How the UAE Labour Law Works

The law establishes a framework of minimum entitlements that no employer can reduce. Any contract clause offering less than the legal minimum is automatically void under Article 8. Employers can offer more — never less.

Here is how the key entitlements compare across common scenarios:

Entitlement	Legal Minimum	Common Practice
Annual Leave	30 calendar days per year (after 1 year of service)	Some employers offer 22–25 working days
Sick Leave	90 days per year (15 full pay, 30 half pay, 45 unpaid)	Top employers offer fully paid sick leave
Maternity Leave	60 days (45 full pay + 15 half pay)	Some offer 90 days fully paid
Paternity Leave	5 working days (within 6 months of birth)	Rarely exceeded
Probation Period	Max 6 months (non-renewable)	Most contracts use the full 6 months
Notice Period	30–90 days as per contract (minimum 30)	30 days is most common

Expert insight: Many employees don't know that unused annual leave must be paid out at termination. Under Article 29, your employer cannot force you to waive accrued leave. If you earned AED 15,000/month and have 15 unused leave days, you're owed AED 7,500 at exit — calculated on your basic salary.

UAE Labour Law — Key Facts and Figures

Working hours are capped at 8 hours per day or 48 hours per week under Article 17. During Ramadan, this reduces by 2 hours daily for all employees, regardless of religion.

Overtime pay is mandatory at 125% of the hourly wage for normal overtime. If overtime falls between 10 PM and 4 AM, the rate increases to 150%. Maximum overtime cannot exceed 2 hours per day unless the work is necessary to prevent a serious loss.

Wages must be paid through the Wage Protection System (WPS), a MOHRE-monitored electronic system. Employers who delay salary by 15 days or more face administrative penalties, and employees can file a complaint on the MOHRE app or via 800-60.

End-of-service gratuity remains one of the most valuable entitlements:

1–5 years of service: 21 days' basic salary per year
Over 5 years of service: 30 days' basic salary per year (for years beyond year 5)
Maximum cap: Total gratuity cannot exceed 2 years' total salary

⚠️ NOTE: Gratuity is calculated on basic salary only — not total salary. Many employees mistakenly assume their housing, transport, and other allowances count. They do not. If your total salary is AED 12,000 but your basic is AED 7,000, gratuity is based on AED 7,000.

Key Factors to Consider

Contract type matters. Since 2022, all contracts must be limited-term (fixed). Unlimited contracts from before February 2022 were given a one-year transition period. If your employer hasn't converted yours, raise this with MOHRE immediately.
Non-compete clauses have limits. Under Article 10, a non-compete clause cannot exceed 2 years and must be limited in geographic scope and type of work. Overly broad clauses are unenforceable.
Termination during probation requires notice. If you resign during probation, you must give 14 days' written notice. If your employer terminates you during probation, the same 14-day rule applies. Leaving the UAE entirely during probation requires 1 month's notice.
Labour bans have been reformed. The old system of automatic 6-month or 1-year bans has been largely removed. Under the new law, workers who complete their notice period and fulfill contract terms can move to a new employer without a ban.
Part-time and flexible work are now legal. Article 7 formally recognizes part-time, temporary, and flexible work arrangements. This opened new doors for expats seeking supplementary income or reduced hours.
Discrimination and harassment protections exist. Article 4 prohibits discrimination based on race, colour, sex, religion, national origin, or disability. Article 14 explicitly bans sexual harassment, bullying, and verbal or physical violence in the workplace.

Common Mistakes People Make

Assuming all salary counts toward gratuity. This is the single most expensive misunderstanding. Gratuity is calculated on basic salary only. If your total package is AED 20,000 but basic is AED 10,000, you could overestimate your gratuity by 50% or more. ⚠️ WARNING: Always check your salary breakdown in your employment contract.
Not filing complaints within the legal window. Under Article 54, labour complaints must be filed within 1 year of the disputed entitlement. Miss this deadline, and MOHRE cannot process your claim.
Resigning without serving the notice period. If you leave without completing your contractual notice, your employer can claim compensation equal to your salary for the unserved notice period. This amount can be deducted from your final settlement.
Ignoring the probation termination rules. Many employees believe probation means either side can walk away instantly. That is incorrect. 14 days' notice is required by both parties. Failing to comply can result in a labour ban for the employee if they attempt to leave the country.
Not keeping copies of employment documents. Your offer letter, contract, salary certificates, and pay slips are essential evidence in any dispute. MOHRE requires documentary proof. Store digital copies securely — the MOHRE app allows you to view your contract digitally.

Practical Tips

Check your contract on the MOHRE app. Download the MOHRE app and verify your contract details match what you signed. Discrepancies between your actual agreement and the MOHRE-registered contract are more common than you'd expect, especially regarding salary breakdowns.

Calculate your gratuity before resigning. Use an online calculator to estimate your end-of-service gratuity accurately. Knowing your exact entitlement gives you leverage during exit negotiations and prevents unpleasant surprises.

Request your salary certificate annually. Ask HR for a salary certificate at least once per year. This document is critical for loan applications, visa renewals, and serves as evidence of your compensation history if a dispute arises.

File complaints digitally first. The MOHRE smart system lets you file complaints online before visiting a Tawafuq centre. Digital complaints are tracked and timestamped, giving you a formal record. Call 800-60 for guidance before filing.

Negotiate your basic salary percentage. When accepting a job offer, negotiate for a higher basic-to-total salary ratio. A higher basic salary means a larger gratuity, better leave encashment, and stronger overtime pay. Aim for at least 60% basic of your total package.

Understand your visa grace period. After termination or resignation, you receive a 30-day grace period to find new employment, change your visa status, or leave the UAE. Overstaying beyond this results in daily fines from the Federal Authority for Identity and Citizenship (ICP).