Gratuity BasicsArticleMOHRE 2025 Compliant

Gratuity for Expats in UAE 2025: Complete Guide for Foreign Workers

Complete guide to UAE end-of-service gratuity for expatriates. Learn eligibility, calculation, repatriation benefits, and visa rules under MOHRE 2025.

Updated
14 min read

✅ Reviewed by MOHRE-certified HR specialists. Accurate as of UAE Labour Law 2025 (Federal Decree-Law No. 33/2021).

Legal Disclaimer: This guide provides general information about UAE gratuity for expatriates as of November 2025. It is not legal advice. For specific cases, consult MOHRE or a qualified immigration/employment lawyer.

Gratuity for Expats in UAE 2025: Complete Guide for Foreign Workers

Expatriate workers in the UAE have identical gratuity rights to UAE nationals under Federal Decree-Law No. 33 of 2021. Your nationality does not affect your entitlement—every private-sector expat who completes 1 year of continuous service receives end-of-service gratuity calculated at 21 days of basic salary per year for the first 5 years, then 30 days per year thereafter. The calculation formula, payment timeline, and legal protections are universal regardless of your passport.

However, expats face unique considerations including visa cancellation timelines, repatriation ticket entitlements, and cross-border payment issues that UAE nationals typically don't encounter.

Equal Treatment Under UAE Law

Your rights as an expat:

✅ Same minimum eligibility (1 year continuous service)
✅ Same calculation formula (21/30 days per year)
✅ Same 14-day payment deadline
✅ Same right to file MOHRE complaints
✅ Same legal protections against unlawful deductions
✅ Same 2-year maximum cap

The only expat-specific differences:

  • Visa cancellation and grace period rules
  • Repatriation ticket entitlement (contractual, not gratuity-related)
  • Cross-border payment logistics
  • Home country tax implications (varies by country)

Gratuity Calculation for Expats

The calculation formula is identical for expats and nationals:

Formula:

Daily Wage = Basic Salary ÷ 30 days
Gratuity = (Daily Wage × 21 days × Years 1-5) + (Daily Wage × 30 days × Years 5+)

Expat Calculation Example: Indian IT Professional

Profile:

  • Nationality: Indian
  • Position: Software Developer
  • Basic salary: AED 12,000/month
  • Service: 4 years
  • Termination: Employer-initiated

Calculation:

  • Daily wage: 12,000 ÷ 30 = AED 400/day
  • Years 1-4: 400 × 21 × 4 = AED 33,600
  • Total Gratuity: AED 33,600 (paid in full within 14 days)

Expat Calculation Example: Filipino Nurse

Profile:

  • Nationality: Filipino
  • Position: Registered Nurse
  • Basic salary: AED 8,000/month
  • Service: 6 years
  • Termination: Employee resignation

Calculation:

  • Daily wage: 8,000 ÷ 30 = AED 266.67/day
  • Years 1-5: 266.67 × 21 × 5 = AED 28,000
  • Years 6: 266.67 × 30 × 1 = AED 8,000
  • Full amount: AED 36,000
  • Resignation after 6 years: 100% (no penalty)
  • Total Gratuity: AED 36,000

Expat-Specific Considerations

1. Visa Cancellation and Gratuity Payment

Timeline coordination:

EventTimelineKey Actions
Last working dayDay 0Employment officially ends
Gratuity payment dueWithin 14 daysMust receive full settlement
Visa cancellationTypically 7-30 daysEmployer initiates cancellation
Grace period beginsAfter visa cancellation30 days to leave UAE or find new sponsor

Important: Gratuity and visa cancellation are separate processes

  • Employer cannot delay gratuity until you leave UAE
  • Gratuity must be paid within 14 days regardless of visa status
  • You can remain in UAE during grace period (30 days) to receive payment and find new job

If employer delays gratuity beyond 14 days:

  1. File MOHRE complaint (even with cancelled visa)
  2. Grace period does NOT affect your right to gratuity
  3. MOHRE can enforce payment even after you leave UAE

2. Repatriation Ticket Entitlement

Repatriation is separate from gratuity:

| Benefit | Gratuity | Repatriation Ticket | |---------|----------|-------------------| | Legal basis | Article 51, Decree-Law 33/2021 | Article 13, Decree-Law 33/2021 | | Entitlement | All employees (1+ year service) | All expat employees | | Amount | Based on salary and years | Economy airfare to home country | | When paid | 14 days from termination | Upon termination or as contract specifies | | Calculation | Formula-based | Fixed cost (ticket price) |

Repatriation ticket rules:

✅ Employer must provide economy airfare to your home country
✅ Applies whether you resign or are terminated
✅ Ticket OR equivalent cash payment (your choice)
✅ Must be provided even if gratuity is disputed

Common issue: Some employers combine gratuity + ticket into one "final settlement" figure. Ensure both are itemized separately in your settlement statement.

3. Cross-Border Payment Issues

Receiving gratuity while abroad:

If you leave UAE before receiving gratuity:

Option 1: UAE bank account

  • Keep UAE bank account active for 30-60 days
  • Provide bank details to employer
  • Receive direct deposit

Option 2: International wire transfer

  • Request transfer to home country bank
  • Provide SWIFT/IBAN details
  • May incur wire transfer fees (negotiate who pays)
  • Exchange rate applies at time of transfer

Option 3: MOHRE enforcement

  • File complaint before leaving or after returning home
  • MOHRE can freeze employer assets
  • You can collect later or authorize representative

4. Tax Implications in Home Country

UAE taxation: Zero personal income tax on gratuity (tax-free)

Home country taxation: Varies by nationality

Nationality/RegionTypical Tax TreatmentNote
IndiaGenerally tax-free if NRI status maintainedVerify with Indian tax advisor
PhilippinesMay be taxable if residentCheck BIR rules for OFW income
PakistanGenerally tax-free for NRPsVerify with FBR guidelines
UKMay be taxable depending on residence statusConsult HMRC rules
USGenerally taxable as foreign incomeReport on Form 1040, may qualify for exemptions
EgyptGenerally tax-free for non-residentsVerify with Egyptian tax authority

Recommendation: Consult a tax advisor in your home country BEFORE you leave UAE to understand tax obligations and plan accordingly.

Common Expat Gratuity Scenarios

Scenario 1: Leaving UAE Permanently

You're returning to home country and won't return:

Steps:

  1. Serve notice period (typically 30 days)
  2. Request final settlement statement within first week
  3. Verify gratuity calculation
  4. Receive payment within 14 days
  5. Keep UAE bank account active for 60 days
  6. Complete visa cancellation
  7. Use 30-day grace period to tie up loose ends
  8. Depart UAE

Don't leave before:

  • ✅ Receiving full gratuity payment (or filing MOHRE complaint)
  • ✅ Confirming repatriation ticket arranged
  • ✅ Collecting salary certificate and experience letters
  • ✅ Closing utility accounts and clearing dues

Scenario 2: Switching Jobs Within UAE

You're moving to new employer in UAE:

Process:

  1. Resign from current employer (serve notice)
  2. Receive full gratuity payment within 14 days
  3. Current employer cancels your visa
  4. You enter 30-day grace period
  5. New employer applies for your work permit
  6. You transfer to new visa (or exit/re-enter if required)

Gratuity timing:

  • Old employer must pay within 14 days regardless of visa transfer status
  • Don't let employer delay payment citing visa processing

Scenario 3: Emergency Departure (Family Emergency, Health)

You need to leave immediately:

Options:

Option A: Negotiate immediate release

  • Request employer waive notice period
  • Agree on gratuity payment timeline
  • Get written confirmation
  • Depart once payment received

Option B: Depart and claim remotely

  • Leave UAE if emergency requires
  • File MOHRE complaint online from abroad
  • Authorize representative (lawyer or friend) to collect payment
  • MOHRE can enforce even if you're not in UAE

Option C: Receive payment in home country

  • Provide international bank details
  • Request wire transfer
  • May take 5-10 business days for international transfer

Scenario 4: Employer Bankruptcy or Business Closure

Company shuts down suddenly:

Your rights:

  • Gratuity remains legally owed even if company closes
  • MOHRE maintains wage protection system (WPS)
  • File complaint immediately
  • MOHRE may pay from bank guarantee (if employer had one)
  • May take 2-6 months to process through insolvency proceedings

Steps:

  1. File MOHRE complaint within 14 days of last salary
  2. Include gratuity in complaint
  3. Gather all documentation (contract, payslips, termination notice)
  4. Attend MOHRE hearings
  5. If company has assets, MOHRE can freeze and allocate to employees

Gratuity Rights for Different Expat Categories

Professional Expats (White Collar)

Typical roles: Engineers, managers, accountants, IT professionals, healthcare workers

Gratuity characteristics:

  • Higher basic salaries (AED 8,000-30,000+)
  • Typically clear contract terms
  • Employers usually compliant with payment
  • Gratuity can range AED 50,000-200,000+ for long service

Common issues:

  • Confusion about housing allowance inclusion (usually excluded)
  • Bonuses incorrectly included in basic salary

Blue Collar Workers

Typical roles: Construction, manufacturing, hospitality, retail, security

Gratuity characteristics:

  • Lower basic salaries (AED 1,500-5,000)
  • Gratuity amounts AED 5,000-30,000 for long service
  • Higher rate of employer non-compliance
  • Language barriers in understanding rights

Common issues:

  • Employers not paying at all
  • Incorrect calculations
  • Pressure to accept reduced amounts
  • Lack of documentation

Protection: MOHRE provides free labor complaint services in multiple languages (Arabic, English, Urdu, Hindi, Bengali, etc.)

Domestic Workers

Typical roles: Housemaids, nannies, drivers, cooks, gardeners

Gratuity status: Eligible under MOHRE domestic worker regulations

Requirements:

  • Registered domestic worker contract with MOHRE
  • 1 year continuous service
  • Same calculation formula applies

Common issues:

  • Many employers unaware domestic workers get gratuity
  • Cash salary arrangements without documentation
  • No formal contracts

Solution: Ensure your domestic worker contract is registered with MOHRE from day one.

How to Protect Your Gratuity Rights as an Expat

Document Everything

Essential documents to keep:

  • ✅ Original employment contract (signed by both parties)
  • ✅ All contract amendments or renewals
  • ✅ Monthly payslips (keep all—electronic and printed)
  • ✅ Visa copies and labor card
  • ✅ Performance reviews and promotion letters
  • ✅ Resignation letter or termination notice
  • ✅ Email correspondence about employment terms

Why: If dispute arises after you leave UAE, these documents are evidence.

Use MOHRE's Digital Services

Key services for expats:

  1. MOHRE mobile app:

    • View your employment contract
    • Check visa status
    • File complaints
    • Track complaint status
  2. Online portal (mohre.gov.ae):

    • File labor complaints
    • Download contract copy
    • Check employer compliance status
  3. Virtual labor office:

    • Get consultations in multiple languages
    • Verify gratuity calculations
    • Understand your rights

Know Your Complaint Rights

You can file MOHRE complaint:

✅ While still in UAE
✅ During 30-day grace period
✅ After leaving UAE (online)
✅ From your home country (authorized representative)
✅ Up to 2 years after termination

Complaint process:

  1. File online at mohre.gov.ae (15-20 minutes)
  2. Upload supporting documents (contract, payslips, termination letter)
  3. Receive complaint reference number
  4. MOHRE contacts employer (3-5 working days)
  5. Mediation session scheduled (within 30 days)
  6. 70% of cases settle at mediation
  7. If no settlement: Case goes to labour court

When to hire employment lawyer:

  • Gratuity dispute > AED 50,000
  • Employer is unresponsive to MOHRE
  • Complex contract terms or amendments
  • Multiple violations (unpaid salary + gratuity + leave)
  • You've already left UAE and need representation

Cost: Typically 10-20% of recovered amount or fixed fee AED 3,000-10,000

Frequently Asked Questions

1. As an expat, do I get less gratuity than Emiratis?

No. Gratuity calculation is identical for all nationalities. UAE nationals and expats receive the same amounts based on salary and service years.

2. Can my employer deduct visa costs from my gratuity?

No. Visa, work permit, and labor card costs are the employer's legal obligation and cannot be deducted from gratuity unless you explicitly agreed in writing (and MOHRE approved).

3. What if I leave UAE before receiving gratuity?

You can still claim it. File a MOHRE complaint online, provide your international bank details, or authorize a representative to collect on your behalf. Your departure doesn't forfeit your entitlement.

4. Do I get gratuity if my visa is cancelled?

Yes. Visa cancellation is separate from gratuity entitlement. You're owed gratuity based on your service, regardless of visa status.

5. Can I receive gratuity in my home country currency?

Employers typically pay in AED to your UAE bank account. If you need payment abroad, request international wire transfer in AED (converted by receiving bank) or negotiate currency conversion terms.

6. What if my employer says "expats don't get gratuity"?

Your employer is wrong. This is illegal. File an immediate MOHRE complaint. Federal Law 33/2021 makes no nationality distinction.

7. I'm switching jobs in UAE. Do I lose gratuity?

No. Your current employer must pay full gratuity when you resign (subject to resignation penalties if under 5 years). Your new employer starts a fresh gratuity accrual cycle.

8. Can I claim gratuity from multiple UAE employers?

Yes, if you worked for different employers at different times. Each employer calculates gratuity based on your service with them. Submit separate claims if needed.

9. Does probation count for expats?

No. Like nationals, expat probation periods (maximum 6 months) do NOT count toward the 1-year eligibility threshold.

10. What if I'm banned from UAE (labour ban)?

Labour bans don't affect gratuity owed. You're still entitled to your end-of-service payment. File complaint through MOHRE online portal or authorized representative.

Resources for Expats

MOHRE Services:

  • Hotline: 600590000 (Arabic, English, Urdu, Hindi, more)
  • Online portal: mohre.gov.ae
  • Mobile app: MOHRE UAE (iOS/Android)

Embassy support:

  • Most embassies have labor attaché offices
  • Can provide guidance (not legal representation)
  • Help with translation and documentation

Legal aid:

  • Some embassies provide pro bono legal clinics
  • Community organizations offer guidance
  • Dubai Legal Affairs Department: Free consultations for basic queries

Calculate Your Gratuity

Employment Details

Calculate Your Expat Gratuity Now

Get an instant estimate of your UAE end-of-service gratuity based on your salary and years of service.

For an instant end-of-service estimate, use our online gratuity calculator UAE.

Final Disclaimer: This guide reflects UAE labour law as of November 2025 and is for informational purposes only. It is not legal advice. Expat gratuity entitlements depend on individual circumstances, contracts, and visa status. For specific cases, consult MOHRE or a qualified employment/immigration lawyer.

Fatima Al Mansoori - HR Specialist | Labour Law Advisor

Fatima Al Mansoori

Verified Expert

HR Specialist | Labour Law Advisor

Certified MOHRE Consultant (UAE)

Over 12 years of experience helping UAE employees understand their labour rights and gratuity entitlements. Specializes in end-of-service calculations and MOHRE compliance.

Reviewed & Verified by Dr. Khalid Omar

PhD in Employment Law | Former MOHRE Legal Advisor

LinkedIn

Verified Content

Published: 5 November 2025
Last Updated: 5 November 2025

Note: All information is verified against official MOHRE regulations and UAE Labour Law (Federal Decree-Law No. 33/2021). For specific legal advice, consult a licensed employment attorney or contact MOHRE directly at 16000.

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Legal Disclaimer: This content is for informational purposes only and reflects MOHRE regulations as of 2025. For specific legal advice or disputes, please consult with an employment lawyer or contact MOHRE directly at 16000 (within UAE).