How to Dispute a UAE Gratuity Calculation

Correction, 7 October 2026: This guide has been revised to remove unsupported salary-band calculations, automatic old/new-law splits and assumptions that DIFC and ADGM share the same benefits system.

Start with the exact difference and the documents that explain it. A calculator result is supporting arithmetic, not an official judgment or proof that the employer must accept your figure.

Ask HR for a traceable breakdown

Request the final basic wage, recognised service, excluded unpaid absence, each settlement component, proposed deduction and payment date. Keep contracts, amendments, payslips, leave records, correspondence and bank-payment evidence. Ask why any salary bands, old resignation fractions or unexplained service resets were used.

Raise the disputed item in writing

State the employer’s figure, your figure and the relevant document or legal provision. Request a correction or a reasoned response. You do not need to invent a five-per-cent dispute threshold: even a smaller error can merit a question.

Escalate through the correct route

For MoHRE-regulated employment, use the current MoHRE complaint service and retain the reference. Other free zones can have their own initial channels; DIFC and ADGM use their respective jurisdictions. Ask about applicable deadlines and appeals promptly. Do not assume every complaint goes straight to court or is resolved within a guaranteed number of weeks.

The standard federal calculation

For a foreign full-time employee under federal private-sector law, Article 51 uses the last basic wage: 21 days for each of the first five qualifying years, then 30 days for each additional year. After one year of continuous service, fractions of a year are counted proportionately. Unpaid absence is excluded from the gratuity service calculation. Housing and transport allowances are not part of the basic-wage calculation. The statutory ceiling is two years’ wage; keep the distinction between basic wage and total contractual wage clear.

Check which rules apply before using a calculator

DIFC’s DEWS or another qualifying scheme, ADGM employment regulations and the federal alternative Savings Scheme have distinct rules. Part-time work needs its contractual hours ratio; domestic, government and pension-covered employment are outside this standard calculation. Use the free-zone comparison to identify your arrangement.

Compare an itemised breakdown

Use the Final Settlement Checker for a standard federal monthly-paid case. Ask HR for the wage basis, qualifying service, unused leave, notice position, earned pay and each proposed deduction. A calculator estimate is a starting point for questions, not a decision on your legal entitlement.

Reviewed 7 October 2026. General information, not personalised legal advice. If the contract, service continuity, salary change or deduction is disputed, confirm the facts with the relevant authority or a qualified employment adviser.

Find support for your employment questions