UAE Gratuity for Part-Time Workers
The Government of the UAE has decided to give the right of gratuity to the millions of part-time workers legally, who were not eligible for these benefits. This was the best decision of the UAE government.
How Is It Calculated Under the 2022 Law?
For years, in the UAE, part-time work came without any understanding of this type of work, where an employee gives his available hours to the employer, and the employer keeps his gratuity. In this aspect, the law was quiet, and the rules were not clear to the employee, which led to confusion at its peak. That law was changed on 2 February,2022, when Federal Decree-Law No. 33 of 2021 came into full force. After this, Cabinet Resolution No.1 of 2022, in this resolution, the part-time gratuity rules were finalised.
Now, whether you are a working person for two to three days a week, working a few hours, or working as a freelance worker with the company or a remote worker working from any location. Now, the UAE will recognise your services, and amended his law, so you will get end-of-term service benefits. Now the Question is how this amount is calculated?
What the 2022 Law Actually Changed
Before 2022, the UAE labour law was not clear about the part-time workers’ gratuity. The part-time employees were not satisfied with the law and did not have legal support. Due to the lack of law, employers do not provide end-of-term gratuity to employees, and the courts of the UAE did not have strong laws, due to which they decided cases inconsistently.
The new laws break the uncertainty. Under Article 30 of Cabinet Resolution No. 1 of 2022, the rights of part-time employees were provided, and the law was now clear that the gratuity to the part-time employees working in any section will be provided, calculated on a pro-rata basis.
Three changes stand out:
- According to the law, part-time jobs were now legally allowed. The law creates three new types of contracts like; part time, temporary and flexible.
- Now dual employment is legal. Now the full-time employees can work part-time with another employer without the permission of the first one. Will get gratuity benefits from both sides.
- The formula for gratuity is now clear. MOHRE published the calculation method on its portal.
Who Qualifies for Part-Time Gratuity?
Some eligibility details matter a lot. You are eligible for end-of-service gratuity as a part-time worker if:
- You are a foreign (expatriate) worker in the UAE private sector
- You must have completed one year with the same employer.
- Your employer should be under the MOHRE boundary.
Important: Emirati nationals are governed by pension and social security laws, not the Article 51 gratuity framework. Workers in the DIFC and ADGM free zones operate under separate employment regulations.
The gratuity amount will be provided to those employees who have completed at least one year with the same employer. If they leave in eleven months, then they are not eligible, so the start date should be mentioned on the agreement.
The Official Gratuity Formula for Part-Time Workers
MOHRE has clearly explained the calculation method. This has different steps like:
Step 1: Calculate the full-time gratuity equivalent
The standard UAE gratuity formula for full-time workers, under Article 51, is:
- For the first five years, completion 21 days basis, salary will be given to the employee per year.
- If you have worked more than five years, then after this period, 30 days of basic salary will be given per year after five years
- Maximum gratuity will be equal to two years’ basic salary.
Step 2: Apply the pro-rata percentage
According to Article 30 of the Executive Regulations, the part-time gratuity percentage is:
(Part-time annual working hours / Full-time annual working hours) x 100 = Pro-rata percentage. This percentage is then applied to the full-time gratuity to arrive at the actual entitlement.
A Real-World Example
Employee Profile: Part-time worker at a Dubai retail firm | 20 hours/week | Full-time sector standard: 48 hours/week | Basic salary: AED 4,500/month | Length of service: 4 years
Calculation Step | Amount |
Part-time annual hours | 20 hrs/wk x 52 = 1,040 hrs |
Full-time annual hours | 48 hrs/wk x 52 = 2,496 hrs |
Pro-rata percentage | 1,040 / 2,496 x 100 = 41.67% |
Daily basic wage | AED 4,500 / 30 = AED 150 |
Full-time gratuity equivalent | 21 days x AED 150 x 4 years = AED 12,600 |
Part-time gratuity (41.67%) | AED 12,600 x 41.67% = AED 5,250.42 |
That AED 5,250.42 is the legally required payment. No negotiation, no discretion — it is a statutory obligation.
Common Mistakes That Cost Workers Money
1. Unpaid leave shrinks your service period
The unpaid leaves will not be included in the gratuity amount because the law does not allow this, so you have no right to claim this. For example, you have worked for three years and get unpaid leave for three months, then the gratuity amount will be calculated on 33 months, not on 36 months.
2. Confusing total salary with basic salary
The next mistake which most people make is that they calculate the gratuity amount on the basis of gross salary, but according to the law, the gratuity amount will be calculated according to the basic salary of the employee.
3. Assuming the percentage is fixed at 37.5%
The part-time employees mostly assume that the gratuity amount will be given according to a fixed percentage regardless of how much they have worked, but it is totally based on the number of hours they have worked, as compared to a full-time employee.
4. Not tracking the contract start date
The employees sometimes do not complete the documentation with the employer whose contract start date is not clear, due to which they face issues at the time of gratuity, so these things should be cleared.
If Your Employer Refuses to Pay
The UAE has the world’s most efficient system to resolve the issues of labour. According to the 2024 IMD World Competitiveness Yearbook, the UAE ranks first globally due to low labour issues, and MOHRE has resolved 98% of issues without involving the court.
If your employer refuses or delays your gratuity payment:
- To start, call MoHRE’s Labour Consultation and Claims Centre at 80084. That’s your first official move. They’ll guide you through registering a complaint and will attempt to mediate the issue.
- Next, gather your paperwork. Make sure to have your part-time employment contract that states your hours, along with salary slips showing your base pay. Include any documents from your start date and copies of any messages where your employer denied gratuity.
- MoHRE has some key thresholds too. From January 1, 2024, they will handle decisions on claims up to AED 50,000. So for most part-timers, this will cover everything there is to claim.
- If things don’t get sorted within two weeks, the case goes to the competent labour court. At this point, getting a lawyer is really wise.
Key Facts at a Glance
Detail | Rule |
Governing Law | Federal Decree-Law No. 33 of 2021 / Cabinet Resolution No. 1 of 2022 |
Minimum Service | 1 year of continuous service |
Calculation Base | Basic salary only (no allowances) |
Formula | Pro-rata % x full-time gratuity equivalent |
Pro-rata % | Part-time hours / full-time hours x 100 |
Gratuity Rate (Years 1-5) | 21 days basic salary per year |
Gratuity Rate (After 5 Years) | 30 days basic salary per year |
Maximum Cap | 24 months basic salary |
Complaint Authority | MoHRE — Call 80084 |
Claim Threshold (MoHRE decision) | Up to AED 50,000 |