What Legal Changes Affect Gratuity in 2025?
2025 MOHRE Updates
Core formula: No change. Still (Basic ÷ 30) × Tier × Years
New clarifications:
- ✅ Stricter deduction standards (burden on employer)
- ✅ Digital complaint process improved
- ✅ Interest calculations standardized (0.5%/month)
- ✅ Unpaid leave policy clarified (doesn't count unless contracted)
- ✅ Part-time eligibility confirmed (same rights)
- ✅ Probation counting confirmed (counts fully)
No Major Changes Planned for 2025
The formula remains stable. MOHRE focuses on:
- Enforcement (stricter on employers)
- Clarification (not new rules)
- Digitization (easier filing)
What Hasn't Changed
❌ Eligibility thresholds: Still 6 months (limited), 1 year (unlimited)
❌ Tier rates: Still 1/3, 2/3, 1 month
❌ Payment deadline: Still 30 days
❌ Resignation rules: Still 50–100% based on tenure
❌ Deduction cap: Still 50% maximum
Employer Enforcement Tightened (2025)
More aggressive MOHRE approach to:
- Late payment (immediate fines)
- Unjustified deductions (heavily scrutinized)
- Missing documentation (presumes employer fraud)
- Repeat violators (permit sanctions, work visa issues)
Benefit: Employees have stronger protections now.
What To Watch For
If MOHRE announces changes in 2025:
- Visit www.mohre.gov.ae for official updates
- Changes typically announced with 30-day notice
- Contact MOHRE (16000) to confirm before applying
Current Status (Stable)
The UAE gratuity system as of 2025 is:
- ✅ Settled and clear
- ✅ Employee-protective
- ✅ Employer-compliant
- ✅ Most transparent in GCC
For an instant end-of-service estimate, use our online gratuity calculator UAE.
No major changes expected in 2025. System is stable!
