Questions & Answers
Gratuity calculation after 5 years of service
Good day,
I worked for a semi-government organization for a total of 5 years. I left the company in May this year. Upon leaving, I received 120k (approximately) as gratuity.
In each of the 5 years, my salary was stated as AED65k in the 1-year contracts I had with the company. There was no breakdown of my salary, allowances, etc.
In my last contract, 2021 to 2022, a new clause appeared stating that only 40 % of the AED65k would be a gratuity.
Could you please advise if I should be entitled to the whole AED65k for each one of the 5-year contacts?
Dear questioner,
If the worker has worked for less than five years, he is entitled to twenty-one days' wage for each year of service.
If the worker has worked for more than five years, he is entitled to thirty days' wage for each year that exceeds the first five years.
Accordingly, you are entitled to a month's salary bonus for each year of work not including housing allowances or relocation.
If your basic salary in the contract is 65 thousand dirhams, you are entitled to 325 thousand dirhams, you must inform a legal adviser of the contract first and you can claim any rights for yourself within a year of leaving the job.
