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How is the salary calculated in case of leaving job and on which basis?

I started my career 4 years back in a Dubai mainland company for AED 4500 (3500 basic and AED 1000 allowance as per the labor contract).

After one year, they paid additional AED 500 (Total salary 5000) for housing allowance. On the 2nd year at the time of renewal, they increased my salary AED 2000 (Total salary 7000).

On the third year, they increased AED 3000 on my salary and AED 1000 as vehicle allowance (total salary 10000 + 1000 vehicle allowance). A net of AED 11000 was reflected in my bank every month as salary.

How much is the settlement I can claim as leave salary and end of service benefits as in the labor contract it's still showing the initial joining salary?

They haven't updated the increment I received on each year on the labor system/contract.

Rashid Saif Advocates & Legal Consultancy
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9 Oct 2022, 09:49

The EOSB is calculated according to the last salary received.

For more, Kindly call or email us.

10 Oct 2022, 03:31

So how much will be my basic to calculate the gratuity?

10 Oct 2022, 03:47

Kindly call on or email us.

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Mohamed Bakheet Advocates & Legal Consultants
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9 Oct 2022, 14:24

11000.

9 Oct 2022, 14:25

So how much will be my basic to calculate the gratuity?

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Elnaggar & Partners
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10 Oct 2022, 05:32

By Law, it calculates according to last paid salary, not the salary mentioned in the contract.

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Laila Hamza Al Mulla Advocates and Legal Consultants
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22 Oct 2022, 14:03

The end-of-service gratuity is calculated on the basis of the value of the basic wage received by the employee, and in a clearer sense the vocabulary of the basic salary, which includes housing, transportation, furniture.

And for utility, utility allowance is not calculated and is taken into account by the salary deposited in the bank every beginning of the month.

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