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How to Calculate End-of-Service Gratuity in the UAE 2025 Under the New Law: Conditions and Calculator

Definition End-of-service benefits represent "a financial amount employees receive upon contract termination, calculated based on service duration and final...

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Legal article · General · 1 min read · 29 Jun 2026

Definition

End-of-service benefits represent "a financial amount employees receive upon contract termination, calculated based on service duration and final basic salary" plus fixed allowances mentioned in the employment contract.

Eligibility Requirements

  • Complete minimum one year of continuous service
  • Legal contract termination (resignation or project completion)
  • No serious violations committed
  • Calculation based on basic salary + fixed allowances
  • No prior settlement that extinguishes benefit rights

Calculation Framework

Service DurationAnnual Benefit
Up to 5 years21 days of basic salary per year
Over 5 years30 days per additional year

The article directs users to the official Ministry of Human Resources calculator for precise computations.

Required Documentation

  • Employment contract copy
  • Service certificate or attendance records
  • Final salary proof
  • Emirates ID and residence visa copies

Claims Process

  1. Review employment contract
  2. Prepare documentation
  3. Request settlement from employer
  4. File complaint through Ministry of Human Resources platform if refused

Common Calculation Errors

  • Using gross salary instead of basic salary
  • Ignoring unpaid absences
  • Excluding fixed allowances

FAQs Addressed

  • Fixed allowances inclusion (Yes, if stated in contract)
  • Resignation before one year (No eligibility)
  • Self-calculation method (Use official calculator)
  • Employer non-payment recourse (File Ministry complaint)