End of Service Gratuity Calculation: Who Qualifies and What You Get
Learn how severance pay is determined based on your years of service and basic salary in the United Arab Emirates.
This scheme provides a mandatory severance payment to employees when they finish their employment.
Who it's for
You qualify for this benefit if you have completed at least one year of continuous service with your employer.
What you get
You receive a mandatory severance payment. The total amount is determined by how many years you worked and your basic salary.
What it costs you
There is no direct cost to you to receive this, but it is important to know that the final calculation is based specifically on your final basic salary rather than your total compensation package.
The catch to know
The way your gratuity is calculated depends on your specific contract type; the rules differ depending on whether you have a limited or an unlimited contract.
How to apply
- Review your employment contract to identify your contract type.
- Confirm you have completed a minimum of one year of continuous service.
- Check your final basic salary to prepare for the calculation.
- Contact your employer or the relevant government body for the final breakdown.