Many workers in the UAE know their monthly salary to the last dirham but are unsure what they are owed when they work extra hours, fall sick, take annual leave or finish their contract. These entitlements can add up to a significant amount of money over a few years, and not knowing them makes it easier for mistakes or unfair practices to go unnoticed.
The UAE overhauled its private sector labour law with a new federal decree-law that took effect in February 2022, followed by implementing regulations and later amendments. The rules below summarise the main entitlements for mainland private sector employees in simple terms. Free zones such as DIFC and ADGM have separate employment laws, and domestic workers are covered by a different law, so their rules can differ.
This article is a general guide, not legal advice. Since regulations are updated from time to time, confirm the current position through the Ministry of Human Resources and Emiratisation (MOHRE) before making any claim.
Why Your Basic Salary Matters So Much
Most UAE salaries are split into basic pay and allowances for housing, transport and other items. Several important entitlements, especially end-of-service gratuity and commonly overtime, are calculated on the basic salary rather than the total. If your basic is low and allowances are high, these payments shrink. Always check your contract to see exactly how your pay is divided.
End-of-Service Gratuity Explained
Gratuity is a lump sum paid when your employment ends, as a reward for your years of service. It replaces the pension that UAE nationals receive, since most expatriates do not contribute to a UAE pension scheme.
Who qualifies
Full-time employees who complete at least one year of continuous service are generally entitled to gratuity. If you leave before completing one year, gratuity is not usually payable.
How it is calculated
- For each of the first five years: 21 days of basic salary per year.
- For each year after five years: 30 days of basic salary per year.
- Part years: calculated proportionately.
- Upper limit: total gratuity cannot exceed two years’ wages.
Under the previous law, workers who resigned early received a reduced gratuity. The 2022 law removed that reduction in most cases, so resigning employees who meet the service condition are generally entitled to full gratuity. Unpaid leave days are typically excluded when counting service.
Payment timeline
The employer must settle gratuity and other dues within a fixed period after the employment ends, set by law. Deductions are allowed only for amounts genuinely owed by the worker, such as a recorded advance.
Worked Gratuity Examples
The table shows simplified examples using a daily rate of basic salary divided by 30. Employers may calculate slightly differently, so treat these as illustrations only.
| Basic Salary (AED) | Years of Service | Days Earned | Approximate Gratuity (AED) |
|---|---|---|---|
| 1,500 | 2 | 42 | 2,100 |
| 2,000 | 3 | 63 | 4,200 |
| 3,000 | 5 | 105 | 10,500 |
| 2,000 | 7 | 165 (105 + 60) | 11,000 |
| 4,000 | 10 | 255 (105 + 150) | 34,000 |
The amounts in this table for UAE gratuity rules reflect commonly reported ranges and are indicative only. Before relying on them, verify current figures with the hiring company or the Consulate General of India, Dubai listed in Helpful Links below.
These figures are indicative and assume no unpaid leave and no disputes. Your actual amount depends on your contract and records.
Annual Leave Entitlement
After completing one year of service, private sector employees are generally entitled to 30 calendar days of paid annual leave each year. If you have served more than six months but less than a year, the entitlement is typically two days for each month worked.
- The employer can schedule leave according to work needs, but should give notice.
- You may carry forward unused leave or be paid for it in some situations, subject to the law and your contract.
- If your employment ends with untaken leave, you are generally entitled to be paid for those days.
- Many contracts add an air ticket home with annual leave, but that depends on your contract.
Public Holidays and Weekly Rest
Private sector employees are entitled to paid leave on official public holidays announced by the government, such as Eid holidays and UAE National Day. If you work on a public holiday, you are generally entitled to a substitute day off or extra pay.
Every worker must get at least one paid weekly rest day. Many companies now follow a Saturday-Sunday or Sunday-only weekend, while sectors such as construction, hospitality and security use rosters.
Sick Leave and Other Types of Leave
Sick leave
After completing probation, employees are generally entitled to up to 90 days of sick leave per year, either continuous or intermittent. The usual breakdown is the first 15 days with full pay, the next 30 days with half pay, and the remaining days unpaid. A medical report is required, and sick leave is generally not paid during probation.
Other leave
- Maternity leave: paid maternity leave for female employees, partly at full pay and partly at half pay, with options for additional unpaid leave.
- Parental leave: a few paid working days for either parent after a child’s birth.
- Bereavement leave: paid days on the death of a spouse or close relative.
- Study leave: paid days for eligible employees studying at approved UAE institutions.
Check exact durations with MOHRE, as they have been adjusted over time.
Working Hours and Overtime Rules
The normal maximum is generally eight hours a day or 48 hours a week. Hours are reduced during Ramadan for many private sector employees. Travel time between home and work is usually not counted as working time unless rules for specific sectors apply.
Overtime limits
Employers can ask for overtime when work requires it, but daily overtime is generally capped at two hours, and total working hours must stay within limits over a three-week period. Exceptions apply in emergencies and certain situations.
Overtime pay
- Regular overtime: the normal hourly wage plus at least 25 percent.
- Night overtime (generally 10 pm to 4 am): the normal hourly wage plus at least 50 percent, except for workers on regular shift patterns.
- Work on a rest day: a substitute rest day or pay of the normal wage plus at least 50 percent.
For example, if your basic salary is AED 1,500, your basic hourly rate on a 30-day, eight-hour basis is about AED 6.25. Regular overtime would then be roughly AED 7.80 per hour. Ask your employer how overtime is recorded and calculated, and keep your own notes of extra hours.
Midday Break During Summer
During the hottest months of summer, the UAE enforces a midday break for workers who work outdoors under direct sun. Employers must stop such outdoor work during the specified hours, provide shaded rest areas and supply drinking water. Some essential work is exempted with safety measures. Violations can be reported to MOHRE.
How Salary Must Be Paid
Salaries must be paid on time through the Wage Protection System, directly into a bank account or approved wage card. This creates a record that helps resolve disputes. Deductions are restricted by law and capped as a share of salary. Recruitment fees and visa costs cannot be deducted from your wages.
What to Do If Your Rights Are Not Respected
- Raise the issue politely in writing with your supervisor or HR, and keep a copy.
- Collect evidence: contract, payslips, bank statements, attendance records and messages.
- File a complaint with MOHRE through its official online, app or call centre channels.
- Indian nationals can also seek help from the Consulate General of India in Dubai or the Embassy of India in Abu Dhabi, and register grievances on the MADAD portal.
- If MOHRE cannot resolve the dispute, it may be referred to the labour courts.
Frequently Asked Questions
Do I lose gratuity if I resign?
Under the current law, employees who resign after completing at least one year of service are generally entitled to gratuity without the old reductions. Check your specific situation with MOHRE.
Is gratuity calculated on total salary?
No. It is calculated on the last basic salary, not on allowances.
Can my employer refuse annual leave?
The employer can set leave dates according to work needs, but cannot deny your entitlement altogether.
Is overtime optional?
Employers can require reasonable overtime within legal limits, but it must be paid correctly and must not exceed the allowed hours.
Do these rules apply in free zones?
Most free zones follow the federal labour law, but DIFC and ADGM have their own employment laws with different rules.
Know Your Numbers
Understanding gratuity, leave and overtime rules helps you plan your finances and recognise when something is wrong. Keep your contract and payslips safe, track your working hours and leave, and approach MOHRE or the Indian mission if your employer does not follow the law. Knowledge of your rights is one of the best protections you can carry abroad.