Saying goodbye to your Dubai job? Don’t leave without understanding your gratuity, a legal entitlement that provides financial support upon leaving your employer. But navigating the legalities can feel overwhelming. Fear not! This guide will break down Dubai’s gratuity law in simple terms, ensuring you receive your rightful payout.
What is Gratuity?
Think of gratuity as a farewell gift from your employer, a one-time payment based on your basic salary and years of service. It’s a crucial financial cushion to ease your transition to a new opportunity.
Who is Eligible?
If you’ve completed at least one year of continuous service in Dubai, you’re entitled to gratuity, regardless of the reason for your departure (resignation, termination, etc.).
How Much Gratuity Will I Get?
The amount depends on your years of service:
- Up to 5 years: 21 days’ basic salary per year
- Over 5 years: 21 days’ basic salary for the first 5 years, PLUS 30 days’ basic salary for each additional year
Example:
Let’s say you worked in Dubai for 3 years with a basic salary of AED 10,000 per month.
- Your daily wage: AED 10,000 / 30 = AED 333.33
- Gratuity for 3 years: AED 333.33 x 21 x 3 = AED 20,999.90
Important Points:
- There’s a maximum limit of two years’ basic salary for gratuity.
- You can use an online Dubai Gratuity Calculator for a quick estimate.
- The Ministry of Human Resources and Emiratisation (MOHRE) website provides official resources and support.
Your Rights:
- Your employer must pay your gratuity within 14 days of your employment ending.
- If you experience any issues regarding your gratuity, you can file a complaint with MOHRE.