Announcing the maximum end of service gratuity in the private sector in the UAE

Abdallah Shahin - | Business

The Ministry of Human Resources and Emiratisation has officially announced the maximum end-of-service gratuity in the private sector in the UAE, stating that the maximum gratuity is the total salary of two full years.

A proclamation regarding the highest possible gratuity for employees leaving their jobs in the private sector in the UAE

It has been officially confirmed by the Ministry of Human Resources and Emiratisation that the highest end-of-service gratuity in the private sector in the UAE is the total salary of two full years، The ministry stated that this is the maximum gratuity that can be awarded.

gratuity
gratuity

Conditions for obtaining end of service benefits

A worker or employee who works full-time for any establishment in the private sector is only eligible for an end-of-service gratuity upon leaving work or ending his service if they have completed at least one year of "continuous" work, as explained by the Ministry of Human Resources and Emiratisation، The ministry also clarified that the days of an employee's absence from Work without pay are not included in the calculation of the period of service.

gratuity
gratuity

The maximum end of service reward according to the years of work

She explained that the worker is not entitled to any end-of-service gratuity if he worked for the employer for a period of less than a year, but if the worker's service period is less than five years, he is entitled to a reward equivalent to 21 days' wages for each year of service, and if the worker's service period exceeds five years, he is entitled to a reward equivalent to 21 days' wages for each year of service، In addition to the first five years, he is eligible to receive thirty days' worth of income for each of the subsequent five years، However, the total amount that can be contributed to the bonus pool should not be more than two years' worth of wages.

When does the worker in the UAE receive the end of service gratuity?

And the Ministry stated, in an indicative publication that it recently broadcast on its official pages on social media platforms, that the worker is entitled to an end-of-service reward for fractions of the year, in proportion to what he spent of it at work, provided that he has completed a year of "continuous service," provided that this reward is calculated on the basis of the value of the last basic salary that the employee received, which means that the basic salary allocation will be used to determine the amount of the worker's reward.

gratuity
gratuity

The date when the worker receives his financial dues upon termination of his services

The Ministry emphasised the importance of the employer's obligation to pay the worker all of his wages, as well as other entitlements and end-of-service benefits, as specified in the federal law regarding the organisation of labour relations and the decisions implementing it, as well as in the work contract and the system of the establishment, within a time period not to exceed 14 days from the end of the contractual relationship with the worker، This obligation is mandated by the federal law regarding the organisation of labour relations and the decisions implementing it، Any amounts that are owed to the employer from the worker may be deducted from the end-of-service gratuity by the employer.

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Abdallah Shahin
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