UAE Golden Visa employees: how is end-of-service gratuity calculated?
For foreign full-time employees covered by federal private-sector labour law, start with the applicable benefit scheme, basic wage and service period. Golden Visa status does not set a flat gratuity amount.
For qualifying foreign full-time employees under the federal traditional system after one year’s continuous service. The statutory cap and lawful deductions also apply.
Golden Visa status does not set a fixed end-of-service payment. For a foreign full-time employee covered by federal private-sector labour law and the traditional gratuity system, entitlement generally starts after one year of continuous service. The calculation uses the final basic wage: 21 days for each of the first five years and 30 days for each subsequent year.[1]
First establish the applicable employment law and benefit scheme. Government employment, domestic work and employment governed by separate labour regimes should not automatically be assessed using this formula.
Start with basic wage
Basic wage is the statutory calculation basis. Housing and transport allowances do not become part of it merely because they arrive with the monthly salary. Check the contract and wage records before inserting a figure.[1][2]
Consider an illustrative employee with a final monthly basic wage of AED10,000, a total monthly package of AED15,000, and exactly six years of qualifying service without excluded unpaid absence. Using monthly basic wage divided by 30, the calculation is AED10,000 ÷ 30 × (21 × 5 + 30 × 1) = AED45,000.
That is a worked example under stated assumptions, not a settlement promise. Using the AED15,000 package or applying 30 days to all six years would change the calculation incorrectly.
Check service and deductions
After at least one year of continuous service, fractions of a year qualify proportionately. Unpaid absence is excluded from the service period. Article 51 also caps total gratuity at two years’ wage and permits deductions for sums payable under law or a judgment, subject to the prescribed conditions and procedures.[1]
Reconcile start and end dates, unpaid absences, final basic wage and any proposed deductions. Ask for the individual entries and their basis rather than relying only on a net settlement figure. That makes a disputed calculation easier to identify and explain.
Establish whether the Savings Scheme applies
The voluntary Savings Scheme is an alternative to traditional gratuity. Employers can enrol all employees or selected groups. For enrolled employees, traditional accrual stops; pre-enrolment gratuity must be calculated and addressed according to law. Subsequent benefits follow the alternative scheme’s contributions and investment arrangements.[2]
Do not count the same covered period twice by adding a full traditional calculation to the alternative scheme’s benefits. Obtain the enrolment date, the pre-enrolment record and the later account statement. These are separate pieces of the settlement history.
Gratuity is one part of final settlement
Article 53 requires payment of wages and other applicable entitlements within 14 days from the end of the employment contract. A settlement should distinguish gratuity from unpaid wages and other items rather than treating receipt of one payment as proof that everything has been settled.[1]
Unemployment insurance is a separate matter. A Golden Visa employee considering an insurance claim must check its own eligibility and procedure; the employer-paid gratuity example above does not determine that claim’s amount or outcome.
Official sources
General policy information; individual circumstances and the competent authority’s requirements govern each application.