I have been working with my company for the past 10 years but I am on my husband’s visa. I wish to leave after my contract expires. How will my gratuity be calculated? SP, Dubai
When it comes to the calculation of an end of service gratuity, it makes no difference if a woman is on her own employment visa or sponsored by her husband, as the standard calculations apply in each case. As set out in Article 132 of the UAE Labour Law: “The employee who has completed one year or more in the continuous service, is entitled to the end of service remuneration at the end of his service. Days of absence from work without pay are not included in computing the period of service, and the remuneration is to be calculated as follows:
• 1. 21 days pay for each year of the first five years of service.
• 2. 30 days pay for each additional year.
Provided that the entire total remuneration shall not exceed two year’s pay.” The gratuity is based on basic salary and allowances are not taken into consideration. If commissions form a regular part of pay, they can be included and if any partial years are worked then the calculations take these into consideration. The amount payable can be reduced if someone resigns but only if they have been with the employer for a period of less than five years. The end of service gratuity payment should be paid at the time of final salary payment.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 20 years of experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice
