End of Service Gratuity: How to Claim What You Are Owed

What End-of-Service Gratuity Means in the UAE

End-of-service gratuity is a lump-sum payment an employer must give when your limited or unlimited contract ends. It rewards years of service and is separate from your final salary or accrued leave. MOHRE enforces the rules, so every expat should know the exact formula before leaving a role.

How Gratuity Is Calculated in 2026

The amount uses your basic salary only, not allowances. For the first five years you receive 21 days of basic pay per year. After five years the rate rises to 30 days per additional year. The maximum counted service is usually capped at the length of your last contract. Example: if your basic salary is AED 15,000 and you worked four years, gratuity equals AED 15,000 divided by 30, multiplied by 21, multiplied by four, which totals AED 42,000.

Payment Timeline and Required Documents

Employers must pay gratuity within 14 days of your last working day once you return your company assets and complete exit clearance. You need your Emirates ID, passport copy, visa cancellation stamp, and the signed resignation or non-renewal letter. Keep digital scans; MOHRE can request them during any dispute.

What to Do If Payment Is Delayed

First send a polite written request by email and keep records. If nothing arrives after 14 days, open a complaint on the MOHRE mobile app or website. The case reference number lets you track progress. Most disputes settle within 30 days once MOHRE contacts the employer. Persistent delays may lead to fines against the company and faster settlement for you.

Common Mistakes That Reduce Your Gratuity

Never sign a waiver that lowers the legal amount. Confirm your basic salary figure on every contract and salary certificate. If you changed roles inside the same company, request an updated salary certificate showing the latest basic pay. Leaving without proper notice can also trigger deductions, so serve the contractual notice period or negotiate an early-release letter.

Tax and Transfer Tips

Gratuity remains tax-free in the UAE. When you transfer the money abroad, compare bank transfer fees and mid-market rates. Some expats open a multi-currency account before departure so the lump sum converts at a better rate than cash pickup services.

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Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →