UAE: How is gratuity calculated if salary changes during course of service?

Question: I have been working in a Dubai-based organization throughout the previous 10 years. I drew a (essential) month to month pay of Dh6,000 for quite some time. I was given an advancement, and have been drawing an essential compensation of Dh9,000 over the course of the past one year. How might my tip be determined?

Reaction: Compliant with your questions, it is expected that you are utilized by a confidential central area organization situated in Dubai. In this manner, the arrangements of Government Announcement Regulation No. 33 of 2021 on the Guideline of Business Relations (the ‘Work Regulation’) are relevant to you.

In the UAE, a worker is entitled for tip assuming the person in question has finished one year of constant assistance with a similar confidential central area organization. For the initial five years of persistent help, a worker is qualified for get 21 days’ fundamental compensation for every extended time of administration as tip. For each ensuing year of administration with a similar business, a worker is qualified for 30 days’ essential compensation as their tip. These are as per Article 51(2) of the Business Regulation, which expresses: “An unfamiliar full-time representative who finishes at least one years in the consistent help is qualified for a severance pay, which is determined based on the essential compensation as follows:

a. (21) 21 working long periods’ of pay for every one of the main long stretches of administration.

b. (30) thirty working long periods’ of pay for each resulting year of administration.”

Further, the tip of a representative is determined on the last fundamental compensation drawn by the worker. This is as per Article 51 (5) of the Business Regulation, which states: “Without bias to the regulation for annuities or retirement advantages to workers in specific foundations, the severance pay will be determined based on the last essential compensation got by the unfamiliar representative, for month to month, week after week, day to day paid workers and based on the normal day to day compensation for piecemeal paid representatives.”

In view of the previously mentioned arrangements of regulation, as your ongoing essential compensation is Dh9,000, your tip will be determined on something very similar. Further, you are entitled for 21 days of essential compensation as tip installment for the initial five years of administration with your manager, and from that point, 30 days for an additional five years of administration.