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End of Service Calculation - UAE
End of Service Calculation - UAE
Sameer B. avatar
Written by Sameer B.
Updated over a month ago

When ending a Direct Employee contract in the UAE, employee are eligible for end of service benefits. The amount depends on several criteria.

Upon contract termination, the compensation calculation includes the following components:

  • Last Month’s Salary

    • Calculated as: Daily wage * Days worked in the final month

  • Gratuity compensation

    • Applies only to non-GCC nationals or employees not receiving DEWS contributions.

      For Limited term contracts:

Tenure (years)

Gratuity

Less than 1 year

No gratuity entitlement

1 to 5 years

21 days' basic pay per year of service

More than 5 years

30 days' basic pay per year of service

(for each year beyond 5 years)

For Unlimited term contracts:

Tenure (years)

Gratuity

Less than 1 year

No gratuity entitlement

1 to 3 years

1/3 of 21 days' basic pay per year of service.

More than 3 years to 5 years

2/3 of 21 days' basic pay per year of service

More than 5 years

30 days' basic pay per year of service

(for each year beyond 5 years)

  • Vacation Leave compensation

    • Calculated as: Daily wage * Unused vacation days.

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