Legal Disclaimer: This article reflects MOHRE updates as of November 2025. Regulations may change. For latest updates, visit mohre.gov.ae.
MOHRE Updates 2025: New UAE Gratuity Rules Explained
MOHRE has intensified gratuity enforcement in 2025 with three major changes: strict 14-day payment deadlines with automated monitoring, enhanced employer penalties ranging from AED 5,000 to AED 50,000 for late payments, and mandatory digital settlement statements through the Wage Protection System. While the core calculation formula (21/30 days) remains unchanged, employers now face real-time compliance tracking and employees gain stronger protection against delayed or withheld gratuity.
This guide covers all 2025 updates affecting your end-of-service entitlement.
Key 2025 Changes at a Glance
| Update | What Changed | Impact |
|---|---|---|
| 14-Day Enforcement | Automated WPS tracking of gratuity payments | Late employers flagged automatically |
| Increased Penalties | Fines raised to AED 5,000-50,000 per violation | Stronger deterrent for non-payment |
| Digital Statements | Mandatory electronic settlement records | Better documentation for disputes |
| Emiratisation Impact | Restructuring treated as employer termination | Full gratuity for affected expats |
| Complaint Process | Enhanced online portal with AI assistance | Faster dispute resolution (20% reduction) |
1. Enhanced 14-Day Payment Enforcement
What Changed
Before 2025: Employers had 14-day deadline but enforcement was complaint-driven
2025 Update: MOHRE now monitors payments through Wage Protection System (WPS) in real-time
How It Works Now
Day 0: Employee's last working day
Day 1-14: Employer must process gratuity payment
Day 15: If no payment registered in WPS, MOHRE automatically sends violation notice to employer
Day 20: If still unpaid, employer account flagged for penalties
Day 30: Automatic escalation to enforcement measures
What This Means for Employees
✅ Automatic protection - No need to file complaint for payment delays
✅ Faster resolution - Employers respond quicker to avoid automated penalties
✅ Better tracking - You can verify payment status through MOHRE app
✅ Stronger leverage - Employers know MOHRE is watching
What This Means for Employers
⚠️ Must register final settlement in WPS within 14 days
⚠️ Cannot claim "processing delays" as excuse
⚠️ Failed payments trigger immediate MOHRE investigation
⚠️ Repeat violations result in business license suspension
2. Increased Employer Penalties (MOHRE Circular 2025/02)
New Penalty Structure
| Violation | Old Penalty (2024) | New Penalty (2025) |
|---|---|---|
| Late payment (15-30 days) | AED 2,000 per case | AED 5,000 per case |
| Non-payment (30+ days) | AED 5,000 per case | AED 15,000 per case |
| Repeat violation (3+ cases/year) | AED 10,000 + warning | AED 50,000 + license suspension |
| Unlawful deductions | AED 3,000 per case | AED 10,000 per case + refund |
| Refusing MOHRE mediation | Warning only | AED 20,000 + court referral |
Additional Consequences
For serious violations:
- ❌ Prevented from hiring new employees
- ❌ Blocked from government contracts
- ❌ Business license suspension (30-90 days)
- ❌ Director travel restrictions
- ❌ Negative impact on company credit rating
Interest on delayed payments:
- 9% per annum on outstanding gratuity (up from 7%)
- Calculated from day 15 after termination
- Compounded monthly
3. Mandatory Digital Settlement Statements
What's Required
All employers must:
✅ Generate electronic final settlement statement through MOHRE portal
✅ Include itemized gratuity calculation
✅ Submit to WPS within 7 days of termination
✅ Provide employee digital copy via email/SMS
✅ Store records for 5 years (up from 2 years)
Statement Must Include
| Field | Details Required |
|---|---|
| Employee Information | Name, Emirates ID, position, employment dates |
| Basic Salary | Monthly basic amount used in calculation |
| Service Years | Start date, end date, probation period, net service |
| Calculation Breakdown | Daily wage, years 1-5 amount, years 5+ amount |
| Penalties/Adjustments | Resignation penalty %, any lawful deductions with justification |
| Payment Details | Final amount, payment method, transaction date |
Benefits for Employees
✅ Transparency - See exactly how gratuity is calculated
✅ Evidence - Digital record for disputes
✅ Verification - Easy to compare with your own calculation
✅ Access - Download anytime from MOHRE app
Calculate Your Gratuity
Employment Details
4. Emiratisation-Related Gratuity Clarifications
MOHRE Circular 2025/03
Issue addressed: Some employers were treating Emiratisation restructuring as employee resignation (reduced gratuity)
2025 Clarification:
✅ Emiratisation-driven terminations = employer-initiated
✅ Affected expats receive 100% gratuity (no resignation penalty)
✅ Applies to:
- Position elimination due to Emiratisation quotas
- Role conversion from expat to national
- Department restructuring for Emiratisation compliance
- Voluntary redundancy offers due to Emiratisation
Exception: If expat voluntarily applies for other roles in company and refuses offer, may be treated as resignation
What This Means
If you're let go due to Emiratisation:
- You receive full gratuity regardless of service years
- Employer cannot apply resignation penalty
- Must state "Position eliminated - Emiratisation compliance" in termination letter
- Payment within standard 14 days
5. Enhanced Online Complaint System
New Features (2025)
AI-Powered Assistance:
- Chatbot helps fill complaint forms
- Automatic calculation verification
- Document checklist generator
- Real-time case status updates
Improved Portal:
- Mobile app redesigned for easier navigation
- Multilingual support expanded (now 8 languages)
- Video mediation available for expats abroad
- Electronic signature for settlements
Faster Resolution:
- Average mediation time reduced from 45 to 35 days
- 85% of cases now resolved within 60 days
- Automatic employer escalation after 15 days non-response
6. Overtime Clarification (MOHRE Circular 2025/04)
Official Stance Reinforced
Overtime does NOT count toward gratuity - confirmed explicitly in 2025 circular
Applies to:
- Regular monthly overtime
- Weekend work compensation
- Public holiday pay
- On-call allowances
- Shift differentials
Only basic salary stated in employment contract is used for gratuity calculation
7. Fixed-Term Contract Renewals
Continuing 2024 Policy (Reinforced 2025)
All new employment contracts must be fixed-term:
- Maximum 3-year duration
- No more unlimited contracts for new hires
- Automatic conversion to unlimited if employer continues employment beyond contract end without formal renewal
Gratuity implications:
- Service periods aggregate if contracts consecutive
- Each renewal = continuation, not reset (unless gratuity settled)
- Employer must specify in renewal whether previous service counts
8. Probation Period Maximum
Strict 6-Month Cap
2025 Enforcement:
- Probation cannot exceed 6 months (enforced strictly)
- Extensions beyond 6 months now prohibited
- Violations: AED 5,000 fine per employee
Gratuity impact:
- Service counting begins immediately after probation ends
- If probation extended illegally, extra months count toward gratuity
What Hasn't Changed
Core Formula Unchanged
The fundamental calculation remains:
Years 1-5: 21 days of basic salary per year
Years 5+: 30 days of basic salary per year
Maximum cap: 2 years of basic salary
Eligibility Unchanged
Still requires:
- 1 year continuous service (post-probation)
- Private sector employment
- Lawful termination
Resignation Penalties Unchanged
Still applies:
- 1-3 years: 33.33% (one-third)
- 3-5 years: 66.67% (two-thirds)
- 5+ years: 100% (no penalty)
How to Ensure 2025 Compliance
For Employees
✅ Track payment deadline - Count 14 days from last working day
✅ Request digital statement - Ask employer for electronic settlement
✅ Verify calculation - Use online calculator before signing
✅ Check WPS record - Confirm payment registered in system
✅ File complaint early - Don't wait 30 days if unpaid
For Employers
✅ Register settlements in WPS within 7 days
✅ Pay within 14 days to avoid automatic penalties
✅ Use MOHRE portal for digital statements
✅ Document Emiratisation terminations clearly
✅ Maintain 5-year records of all settlements
Impact on Common Scenarios
| Scenario | Before 2025 | After 2025 Updates |
|---|---|---|
| Employer pays on day 20 | Employee must file complaint | Employer auto-flagged, penalty AED 5,000 |
| Emiratisation layoff | Ambiguous (some got reduced) | Clearly 100% gratuity (employer termination) |
| Settlement dispute | Word-of-mouth records | Digital record in WPS, easier to verify |
| Complaint filing | 45-day average resolution | 35-day average (22% faster) |
Frequently Asked Questions About 2025 Updates
1. Do the 2025 updates change how much gratuity I receive?
No. The calculation formula (21/30 days) and eligibility requirements remain unchanged. Updates focus on enforcement and payment timelines, not amounts.
2. What if my employer paid me on day 15 (one day late)?
MOHRE's automated system may flag this, but enforcement is typically triggered after day 14. Your employer may receive a warning. You still receive full amount plus any applicable interest.
3. Can I still file a manual complaint or is it all automated now?
You can still file manual complaints through MOHRE website, app, or in-person. The automation applies to payment monitoring via WPS, not complaint filing.
4. Are the new penalties retroactive?
No. Only violations occurring after January 1, 2025 are subject to new penalty amounts. Pre-2025 violations follow old penalty structure.
5. Does my employer's 5-year record requirement apply to my old employment?
Yes. Employers must maintain gratuity records for 5 years. If you left in 2020-2024, employer must still have records available if you file complaint within 2-year statute of limitations.
Official MOHRE Resources
Stay Updated:
- Website: mohre.gov.ae > Labour Relations > Updates
- Mobile App: MOHRE UAE (updated with 2025 features)
- Newsletter: Subscribe at mohre.gov.ae/newsletter
- Hotline: 600590000
Download 2025 Circulars:
- Circular 2025/02: Enhanced Payment Enforcement
- Circular 2025/03: Emiratisation Gratuity Clarifications
- Circular 2025/04: Overtime Exclusion Reaffirmation
Calculate Your 2025 Gratuity
Our calculator is updated with all 2025 MOHRE rules. Get your accurate estimate now.
Related Resources
- UAE Labour Law 2025: Gratuity Entitlement Breakdown
- How to File a Gratuity Dispute in UAE
- What Legal Changes Affect Gratuity in 2025?
- How to Calculate Gratuity in UAE: Complete 2025 Guide
- Latest MOHRE Announcements About Gratuity 2025
For an instant end-of-service estimate, use our online gratuity calculator UAE.
Final Disclaimer: This article reflects MOHRE updates as of November 2025 and is for informational purposes. Regulations may change. For latest official updates, visit mohre.gov.ae or call 600590000.
