UAE: How is gratuity calculated if salary changes during course of service? – News

A KT reader needs to estimate the earned quantity for a interval of 10 years

Query: I’ve been working in a Dubai-based firm for the final 10 years. I drew a (fundamental) month-to-month wage of Dh6,000 for 9 years. I used to be given a promotion, and have been drawing a fundamental wage of Dh9,000 during the last one yr. How will my gratuity be calculated?

Response: Pursuant to your queries, it’s assumed that you’re employed by a personal mainland firm based mostly in Dubai. Subsequently, the provisions of Federal Decree Legislation No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Legislation’) are relevant to you.

Within the UAE, an worker is entitled for gratuity if she or he has accomplished one yr of steady service with the identical personal mainland firm. For the primary 5 years of steady service, an worker is entitled to obtain 21 days’ fundamental wage for every year of service as gratuity. For every subsequent yr of service with the identical employer, an worker is entitled to 30 days’ fundamental wage as his or her gratuity. These are in accordance with Article 51(2) of the Employment Legislation, which states: “A overseas full-time worker who completes a number of years within the steady service is entitled to a severance pay, which is calculated on the premise of the essential wage as follows:

a. (21) twenty-one working days’ of wage for every of the primary years of service.

b. (30) thirty working days’ of wage for every subsequent yr of service.”

Additional, the gratuity of an worker is calculated on the final fundamental wage drawn by the worker. That is in accordance with Article 51 (5) of the Employment Legislation, which states: “With out prejudice to the laws for pensions or retirement advantages to workers in sure institutions, the severance pay shall be calculated on the premise of the final fundamental wage obtained by the overseas worker, for month-to-month, weekly, each day paid workers and on the premise of the common each day wage for piecemeal paid workers.”

Based mostly on the aforementioned provisions of regulation, as your present fundamental wage is Dh9,000, your gratuity might be calculated on the identical. Additional, you might be entitled for 21 days of fundamental wage as gratuity cost for the primary 5 years of service together with your employer, and thereafter, 30 days for one more 5 years of service.

Ashish Mehta is the founder and Managing Companion of Ashish Mehta & Associates. He’s certified to practise regulation in Dubai, the UK and India. Full particulars of his agency on: www.amalawyers.com. Readers might e-mail their inquiries to: information@khaleejtimes.com or ship them to Authorized View, Khaleej Instances, PO Field 11243, Dubai.

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