Calculating your end-of-service pay - UAE

Calculating your end-of-service pay is important. Knowing how the total sum is reached will help you identify any errors made by your company. Let’s discuss what your entitle to get paid in case of resignation and termination,

1. Paid Notice period for 30 days or the agreed period in the contract.

2. Pending annual leave salary ( 60 days maximum) - on basic salary in All Emirates.

3. Gratuity - (on current basic salary).

Under limited contract

An employee who has to complete continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service and the gratuity shall be calculated as follows:

• If an employee has served for less than 1 year, he is not entitled to any gratuity pay.
• If an employee has served for more than 1 year but less than 5 years, he is entitled to full gratuity pay based on 21 days' salary for each year of work.
• If an employee has served more than 5 years, he is entitled to full gratuity of 30 days' salary for each year of work following the first five years.

In all cases, the total gratuity shall not exceed the wage of two years.

Under unlimited Contract

In the event where the employer terminates an unlimited contract, calculation will be as follows:

• If an employee has served for less than 1 year, he is not entitled to any gratuity pay.
• If an employee has served more than 1 year but less than 5 years, he is entitled to 21 calendar days' basic salary for each year of the first five years of work.
• If an employee has served more than 5 years, he is entitled to 30 calendar days' basic salary for each additional year, provided the entire compensation does not exceed two years' pay.

In the event where the employee under an unlimited contract resigns, calculation will be as follows:

• If an employee resigns before completing 1 year of service, he is not entitled to any gratuity pay.
• If an employee has served between 1 and 3 years, he is entitled to one third (1/3) of 21 days' basic salary as gratuity pay. (07 Days)
• If an employee has served between 3 and 5 years, he is entitled to two-thirds (2/3) of 21 days' basic salary as gratuity pay. ( 14 Days)
• If an employee has served more than 5 years, he is entitled to 30 calendar days' basic salary for each additional year

4. One way Air Ticket

5. Pending salary and overtime.

We are happy to help you if you have any inquiries related to above subject Erandi Nanayakkara (c) Jobs4Lankans