UAE MoHRE Clarifies End-of-Service Gratuity Calculations and 14-Day Payment Deadline

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has detailed statutory provisions governing end-of-service gratuity for private sector employees, Gulf News reported. The ministry outlined eligibility criteria, calculation formulas, and final settlement timelines under the UAE Labour Law.

According to the ministry, expatriate employees who complete at least one continuous year of service qualify for end-of-service gratuity calculated on their last basic salary. The benefit is calculated at 21 days' basic salary for each year worked during the first five years, increasing to 30 days' basic salary for each year beyond five years. Partial years worked after the first year are calculated proportionately, and the total payout cannot exceed two years' wages.

MoHRE stressed that employers must disburse all end-of-service entitlements and outstanding wages within 14 days of the contract termination date. The ministry also pointed to its voluntary Savings Scheme, which allows employers to invest end-of-service funds through approved investment vehicles as an alternative arrangement.