The end-of-service gratuity calculations are scheduled to be changed for the private sector employees working in Abu Dhabi.
The UAE Ministry of Human Resources and Emiratisation (MoHRE) confirmed the updates to UAE gratuity on Twitter.
The tweet reads: “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.”
The update means that any unpaid leave days the person has taken will be removed from the end-of-service calculations.
Currently, all those who complete one year at their workplace are entitled to a gratuity payment upon leaving their role at the company.
How is end-of-service UAE gratuity calculated?
Using your basic salary (before allowances are added on), you will receive a 21-day salary payment for each of the first five years of service.
Those who have been working in the same company for more than five years will get 30 days worth of their basic for every year past the first five.
If you leave after having worked part of the year – for example, after 18 months – the gratuity will be calculated on a pro-rata basis.
That said, after this week’s update, unpaid leave days will be taken off this final total.
If you want to find out how much gratuity you might be owed, you can check out the Dubai Development Authority’s gratuity calculator.
Updates to the UAE labour laws last year saw an announcement that gratuity will not be forfeited if you are terminated through ‘gross misconduct’ which was a big change.