The Ministry of Human Resources and Emiratization (MoHRE) in the United Arab Emirates (UAE) has announced that private sector employees are entitled to receive an end-of-service financial benefit known as gratuity.
According to MoHRE, employees are eligible for gratuity if they have resigned from their job or have been asked to leave. However, in the case of private sector employees, the calculation of gratuity doesn’t include unpaid leaves.
Taking to Twitter, MoHRE stated that a full-time private sector employee, with over a year of service, is entitled to receive gratuity, but during the calculation, unpaid leave days won’t be counted.
A full-time employee in the private sector who has completed a year or more of continuous service is entitled to an end-of-service gratuity at the end of their service, however, unpaid leave days are not included in calculating the gratuity. #MoHRE #UAE pic.twitter.com/WdTu7bmTf8
— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) January 10, 2023
The gratuity is calculated on the employee’s basic salary and is paid as per the working days, given that the employee has completed one continuous year of service.
As per the MoHRE guidelines, employees must be given a 21-day salary for each year of service during the first five years of employment. After five years of service, the employee will receive a gratuity of a 30-day salary for each year completed.
