Note: This is current as of November 2025. Rules may change. Check mohre.gov.ae for updates.
What's New with UAE Gratuity in 2025?
Quick Answer: The formula is the same (21/30 days). What changed? MOHRE now tracks payments automatically. If your boss is late, they get fined. Employers face bigger penalties. And filing complaints is faster and easier.
Good news for workers: MOHRE got serious about making employers pay on time. Here's what changed.
2025 Changes at a Glance
| What Changed | What It Means | |--------------|---------------| | Automatic tracking | MOHRE watches if you get paid on time | | Bigger fines | AED 5,000-50,000 for late payment | | Digital records | You'll get an electronic breakdown | | Faster complaints | 20% quicker resolution | | Emiratisation clarity | If laid off for Emiratisation, you get full pay |
1. Automatic 14-Day Payment Tracking
Before 2025
Your boss had 14 days to pay. But MOHRE only found out if you complained.
Now in 2025
MOHRE tracks every payment through the Wage Protection System (WPS).
How it works:
- Day 0: Your last work day
- Day 1-14: Boss should pay you
- Day 15: If nothing in WPS, MOHRE sends a warning
- Day 20: Still unpaid? Boss gets flagged for fines
- Day 30: MOHRE escalates to enforcement
What This Means for You
No need to file a complaint for late payments
Employers pay faster to avoid fines
You can check payment status on the MOHRE app
Your boss knows MOHRE is watching
2. Bigger Fines for Late Employers
MOHRE raised the penalties. A lot.
| Violation | Old Fine (2024) | New Fine (2025) | |-----------|-----------------|-----------------| | Paid 15-30 days late | AED 2,000 | AED 5,000 | | Paid 30+ days late | AED 5,000 | AED 15,000 | | 3+ violations per year | AED 10,000 + warning | AED 50,000 + license freeze | | Illegal deductions | AED 3,000 | AED 10,000 + refund | | Ignoring MOHRE | Warning only | AED 20,000 + court referral |
Extra Consequences
Bad employers now face:
- Can't hire new people
- Blocked from government contracts
- Business license frozen (30-90 days)
- Directors can't travel
- Credit rating damage
Interest on Late Payments
If paid late, you get interest: 9% per year (up from 7%).
- Starts from day 15
- Compounds monthly
3. Digital Settlement Statements
What Your Employer Must Do
Generate electronic final statement through MOHRE
Show gratuity breakdown
Submit to WPS within 7 days
Send you a copy by email or text
Keep records for 5 years (was 2 years)
What the Statement Shows
| Info | Details | |------|---------| | Your info | Name, Emirates ID, job, dates worked | | Basic salary | Monthly amount used in calculation | | Service years | Start date, end date, probation, net service | | Math breakdown | Daily wage, years 1-5 amount, years 5+ amount | | Deductions | Any penalties with explanation | | Payment | Final amount, how paid, when |
Why This Helps You
See exactly how they calculated your gratuity
Easy to spot mistakes
Digital proof for disputes
Download anytime from MOHRE app
4. Emiratisation Layoffs = Full Gratuity
The Problem
Some employers were laying off expats for Emiratisation but calling it "resignation" to pay less.
The 2025 Fix
MOHRE said clearly: Emiratisation layoffs = employer termination = 100% gratuity.
Position cut for Emiratisation? Full pay.
Role converted to Emirati? Full pay.
Department restructured? Full pay.
Voluntary redundancy offer? Full pay.
Exception: If you turn down another role they offered, it might be treated as resignation.
What to Do
If you're let go for Emiratisation:
- Get a letter saying "Position eliminated - Emiratisation"
- You get 100% gratuity (no resignation penalty)
- Paid within 14 days
5. Better Complaint System
New Features
AI help:
- Chatbot helps fill out forms
- Automatic calculation check
- Document checklist
- Real-time case tracking
Improved website:
- Easier MOHRE app
- 8 languages now
- Video mediation for expats abroad
- Electronic signatures
Faster resolution:
- Average time: 35 days (was 45)
- 85% of cases resolved in 60 days
- Auto-escalation after 15 days if no response
6. Overtime Still Doesn't Count
MOHRE confirmed again: overtime is NOT included in gratuity.
Not included:
- Regular overtime
- Weekend pay
- Holiday pay
- On-call pay
- Shift bonuses
Only your basic salary counts.
7. Fixed-Term Contracts Continue
All new contracts must be fixed-term (max 3 years). No more unlimited contracts for new hires.
For gratuity:
- Service carries over if contracts are back-to-back
- Each renewal continues your count
- Employer should confirm in writing
8. 6-Month Probation Limit Enforced
Probation can't be more than 6 months. Period.
2025 enforcement:
- Extensions past 6 months? Not legal.
- Fine: AED 5,000 per employee
- If they illegally extended probation, those extra months count toward your gratuity
What Stayed the Same
Same Formula
| Period | Days of Basic Salary | |--------|---------------------| | Years 1-5 | 21 days per year | | Years 5+ | 30 days per year | | Maximum | 2 years of salary |
Same Eligibility
- 1 year after probation
- Private sector jobs
- Normal departure (not absconding)
Same Resignation Penalties
| Years | What You Get | |-------|-------------| | 1-3 years | 33% (one-third) | | 3-5 years | 67% (two-thirds) | | 5+ years | 100% |
What You Should Do
As a Worker
Count 14 days from your last work day
Ask for electronic settlement statement
Check the math before signing
Confirm payment is in WPS
File complaint early if unpaid
Check Our Tool
Use our gratuity calculator to verify your amount. It's updated for 2025.
How 2025 Changes Affect Real Situations
| Situation | Before 2025 | After 2025 | |-----------|-------------|------------| | Boss pays on day 20 | You had to file complaint | Boss auto-flagged, fined AED 5,000 | | Emiratisation layoff | Sometimes got reduced pay | Clearly 100% gratuity | | Dispute over amount | Paper records, hard to prove | Digital record in WPS | | Filing complaint | 45-day average | 35-day average (22% faster) |
Quick Answers
Did gratuity amounts change?
No. Same formula (21/30 days). Only enforcement changed.
Boss paid on day 15. What happens?
They might get flagged but usually just warned. You still get full amount plus any interest.
Can I still file manually?
Yes. Online, app, or in-person. The automation is for payment monitoring, not complaint filing.
Do new fines apply to old violations?
No. Only violations after January 1, 2025.
How long must employers keep records?
5 years now. If you left in 2020-2024, they should still have your records if you file within 2 years.
Stay Updated
MOHRE resources:
- Website: mohre.gov.ae > Labour Relations > Updates
- App: MOHRE UAE (updated for 2025)
- Newsletter: mohre.gov.ae/newsletter
- Phone: 600590000
2025 Circulars:
- Circular 2025/02: Payment Enforcement
- Circular 2025/03: Emiratisation and Gratuity
- Circular 2025/04: Overtime Exclusion
Calculate Your 2025 Gratuity
Our calculator has all the 2025 rules. Get your estimate now.
Related Pages
- UAE Labour Law 2025
- How to File a Gratuity Dispute
- How to Calculate Gratuity
- Latest MOHRE Announcements 2025
Use our free gratuity calculator for an instant estimate.
Disclaimer: This reflects MOHRE updates as of November 2025. Rules may change. Check mohre.gov.ae for the latest.
