What Are UAE End-of-Service Benefits?
"End-of-service benefit" (EOSB) is the formal term used in UAE law for what is commonly called gratuity. It refers to the lump-sum payment that eligible private-sector workers receive when their employment ends. The legal basis isFederal Decree-Law No. 33 of 2021, primarily Article 51.
End-of-Service Benefit vs Final Settlement
Important distinction: Gratuity (EOSB) is not the same as your full final settlement. When employment ends, the total amount you receive may consist of several components:
Calculated on basic salary × days rate × years of service. This is what our calculator estimates.
Any salary owed for days worked in the final month or period that has not yet been paid.
Untaken annual leave days that must be encashed at the time of final settlement.
Amounts related to the notice period, depending on whether notice was worked, paid in lieu, or not served.
Amounts the employer is legally entitled to deduct, such as outstanding loans or advances as permitted by law.
Any other amounts owed under your employment contract or UAE Labour Law.
The Optional End-of-Service Savings Scheme
The UAE has introduced a voluntary alternative End-of-Service Savings Scheme (sometimes called the DEWS scheme for DIFC employees, or the Cabinet Resolution-approved scheme for other sectors). This is a fundamentally different system from traditional gratuity:
- Employers contribute a percentage of the employee's monthly salary to an investment fund managed by regulated providers
- The employee's EOSB grows over time through contributions and investment returns
- Employees enrolled in this scheme receive their EOSB from the fund, not from direct employer payment at the end of service
- This scheme is not universal — it is optional and depends on whether the employer has enrolled in the programme
When Must End-of-Service Benefits Be Paid?
UAE Labour Law requires employers to settle all end-of-service entitlements within the legally prescribed period after the termination of employment. Failure to pay on time can be reported to MOHRE. Employers who delay payment without justification may be subject to penalties.
What If My Employer Does Not Pay?
If your employer does not pay your end-of-service gratuity or other entitlements:
- Request a formal settlement in writing from your employer.
- File a complaint with MOHRE via mohre.gov.ae or their helpline (800 60).
- MOHRE will attempt conciliation between you and your employer.
- If unresolved, the matter is referred to the competent court.
- Consult a UAE employment lawyer for guidance on your specific case.
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