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.
Expat Gratuity Rights: The Legal Foundation
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:
| Event | Timeline | Key Actions |
|---|---|---|
| Last working day | Day 0 | Employment officially ends |
| Gratuity payment due | Within 14 days | Must receive full settlement |
| Visa cancellation | Typically 7-30 days | Employer initiates cancellation |
| Grace period begins | After visa cancellation | 30 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:
- File MOHRE complaint (even with cancelled visa)
- Grace period does NOT affect your right to gratuity
- 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/Region | Typical Tax Treatment | Note |
|---|---|---|
| India | Generally tax-free if NRI status maintained | Verify with Indian tax advisor |
| Philippines | May be taxable if resident | Check BIR rules for OFW income |
| Pakistan | Generally tax-free for NRPs | Verify with FBR guidelines |
| UK | May be taxable depending on residence status | Consult HMRC rules |
| US | Generally taxable as foreign income | Report on Form 1040, may qualify for exemptions |
| Egypt | Generally tax-free for non-residents | Verify 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:
- Serve notice period (typically 30 days)
- Request final settlement statement within first week
- Verify gratuity calculation
- Receive payment within 14 days
- Keep UAE bank account active for 60 days
- Complete visa cancellation
- Use 30-day grace period to tie up loose ends
- 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:
- Resign from current employer (serve notice)
- Receive full gratuity payment within 14 days
- Current employer cancels your visa
- You enter 30-day grace period
- New employer applies for your work permit
- 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:
- File MOHRE complaint within 14 days of last salary
- Include gratuity in complaint
- Gather all documentation (contract, payslips, termination notice)
- Attend MOHRE hearings
- 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:
-
MOHRE mobile app:
- View your employment contract
- Check visa status
- File complaints
- Track complaint status
-
Online portal (mohre.gov.ae):
- File labor complaints
- Download contract copy
- Check employer compliance status
-
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:
- File online at mohre.gov.ae (15-20 minutes)
- Upload supporting documents (contract, payslips, termination letter)
- Receive complaint reference number
- MOHRE contacts employer (3-5 working days)
- Mediation session scheduled (within 30 days)
- 70% of cases settle at mediation
- If no settlement: Case goes to labour court
Consider Legal Representation
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.
Related Resources
- How to Calculate Gratuity in UAE: Complete 2025 Guide
- Gratuity Eligibility in UAE 2025: Who Qualifies for End-of-Service Pay
- UAE Labour Law 2025: Gratuity Entitlement Breakdown
- Repatriation Benefits and Gratuity Rules for Expats
- How to File a Gratuity Dispute in UAE
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.
