The 2025 UAE Labour Framework
Since the implementation of Federal Decree-Law No. 33 of 2021, the UAE has standardized end-of-service benefits. A major addition for 2024/2025 is the ILOE (Involuntary Loss of Employment) insurance, which is now mandatory for all employees.
Official Gratuity Rules
Gratuity is calculated on your last drawn basic salary. Allowances (housing, transport) are excluded from this calculation.
- Service < 1 Year: No gratuity entitlement.
- 1 to 5 Years: 21 working days' basic salary for each year.
- Over 5 Years: 30 working days' basic salary for each year beyond the first five.
Authentic FAQ (Search Console Data)
Does resignation affect my gratuity under the new law?
Yes. While the new law simplified many things, your entitlement still depends on your tenure. If you resign before 1 year, you get nothing. After 1 year, you are entitled to full gratuity based on the 21/30 day formula.
Is ILOE insurance different from gratuity?
Yes. Gratuity is paid by your employer. ILOE is an insurance scheme you pay into, which provides monthly cash benefits if you lose your job involuntarily.
What if my employer refuses to pay?
You should file a formal complaint through the MOHRE (Ministry of Human Resources and Emiratisation) app or website. Most cases are settled via mediation.
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