Answer Book question
In the UAE, a sum written into law: 21 days' basic salary for each of the first five years and 30 days' basic salary for each year after that, on your last basic wage, capped at two years' total wages, provided you completed at least one year. Under the 2022 labour law, resigning no longer reduces it and the old limited/unlimited contract distinction is gone; the employer must pay within 14 days of your last working day. Free-zone employees in DIFC and ADGM have savings-plan schemes instead. Other Gulf states have similar but not identical formulas; each has to be checked separately.
In the UAE, a sum written into law: 21 days' basic salary for each of the first five years and 30 days' basic salary for each year after that, on your last basic wage, capped at two years' total wages, provided you completed at least one year. Under the 2022 labour law, resigning no longer reduces it and the old limited/unlimited contract distinction is gone; the employer must pay within 14 days of your last working day. Free-zone employees in DIFC and ADGM have savings-plan schemes instead. Other Gulf states have similar but not identical formulas; each has to be checked separately.
Shaji worked twelve years at a Dubai logistics firm. His gross was AED 9,000 but his MOHRE contract shows basic AED 5,000; the rest is housing and transport. His gratuity is on the AED 5,000. First five years: 21 × 5 = 105 days. Next seven years: 30 × 7 = 210 days. Total 315 days × (5,000 ÷ 30) = AED 52,500, about ₹12 lakh at the time of writing. Had he not known the formula, the settlement offered was AED 31,000.
Federal Decree-Law No. 33 of 2021 (in force February 2022), Article 51, sets the UAE formula. Basic wage only: allowances, overtime, commissions and bonuses are excluded, and the wage in the MOHRE-registered contract is what counts. Daily rate is monthly basic ÷ 30. Pro-rating applies for part years after the first. Unpaid leave is excluded from service. Dismissal for gross misconduct under Article 44 can forfeit the benefit. Employers may deduct lawful debts.
MOHRE provides a free online calculator and a complaints channel; disputes start at MOHRE and, if unresolved, go to the labour court, where claims under AED 50,000 are typically fast-tracked.
Elsewhere: Saudi Arabia's Labour Law (Article 84) gives half a month's wage per year for the first five years and a full month thereafter, with reductions on resignation before ten years; Qatar pays a minimum of three weeks' basic wage per year after one year; Oman, Kuwait and Bahrain each have their own scales. In every case, the wage base and the reason for leaving determine the figure, and the employer's settlement sheet should be checked against the law before you sign.
Your registered basic wage (MOHRE contract or labour-ministry equivalent), not your payslip gross Exact start and end dates; unpaid leave periods Whether you resigned or were terminated, and under what article Unused annual leave: payable separately in cash in the UAE and most Gulf states Any deductions the employer proposes, with documents
Signing the final settlement and the visa-cancellation papers together under time pressure. The cancellation can be done; the settlement acknowledgement should be signed only after you have checked the figure. Also: accepting that 'basic' is whatever the employer says. The registered contract is the evidence.
End-of-service money is the largest single sum most Gulf Malayalis ever receive, and it is routinely short-paid. NORKA Roots' legal assistance cell and the Indian consulates' Pravasi Bharatiya Sahayata Kendras can help with a MOHRE complaint. Once home, the money is tax-free on receipt in India for a non-resident, but interest earned on it after return is not; plan the RFC/NRE conversion before you land (see Vol 1, NRI Money).
Basic AED 4,000, eight years, resigned: 105 days + 90 days = 195 days × 133.33 = AED 26,000. The two-year wage cap (AED 96,000) is not reached. Leave balance of 20 days: 20 × 133.33 = AED 2,667 extra.
Domestic workers fall under a separate UAE law with its own end-of-service rule. Government and semi-government employers, and DIFC/ADGM free-zone companies, use different schemes. A dismissal for proven gross misconduct can extinguish the claim. This chapter explains the rule; a MOHRE query or a lawyer in the relevant country confirms your figure.
Run the MOHRE calculator with your registered basic and dates before resigning Ask HR for the settlement breakdown in writing; compare Dispute at MOHRE (UAE) or the labour ministry of the country before you leave, with consular help if needed
Is there insurance for Gulf workers from the Indian government? I am returning from Dubai permanently. What should I change financially? (Vol 1)
NRI return & welfare
UAE Federal Decree-Law No. 33 of 2021, Articles 44, 51, 53; MOHRE end-of-service calculator · Saudi Labour Law Article 84; Qatar Labour Law Article 54 (verify current text) · NORKA Roots legal assistance; Indian consulate PBSK Last checked: 22 August 2026. Rates, limits and whether you may qualify change. Confirm with the official source before you act. Ask Kerala Rising: Use only general, non-identifying facts.
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This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, employment, or professional advice. Rules, rates, deadlines, and decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.