UAE announces changes in private sector gratuity

January 11, 2023 thehrobserver-hrobserver-UAE-KSA

By the HR Observer Staff

The UAE Ministry of Human Resources and Emiratisation (MoHRE) said in a tweet that the end of service gratuity for private sector employees will not include unpaid leave days.

“A full-time employee in the private sector who has completed a year or more of continuous service is entitled to an end-of-service gratuity at the end of their service, however, unpaid leave days are not included in calculating the gratuity,” tweeted MoHRE.

The end of service gratuity is calculated by using an employee’s basic salary, before the allowances are added.

Employees who have been working in the same company for more than five years will receive 30- days of their basic pay for every year after the first five. Meanwhile, those who haven’t been in the companies for five years, will receive a 21-day salary payment for the first five years of service.

The UAE has updated its gratuity mandate to include that in case an employee was terminated due to gross misconduct, they will not be forfeited.

Related Posts