UAE authorities have said that starting from February 2, 2022, full-time private sector and federal government employees will be entitled to a gratuity of 21 days’ basic salary for each year in the first five years of employment, and an additional 30 days per exceeding year.
According to officials, if the period of service exceeds more than five years, employees are entitled to the gratuity of 30 days’ basic salary for each year of work after the first five years, in addition to the 21 days’ basic pay for each year for the first five years.
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The law will determine gratuity for employees working in the new temporary, flexible and part-time job models introduced last month, but no gratuity will be paid to employees who do not complete one year of employment.
The new Federal Decree Law no. 47 of 2021 pushes unified provisions to establish an integrated, sustainable and competitive labour market in the UAE. (AW)
