Question:
How are the end-of-service benefits calculated for a full-time worker?
Answer:
End-of-service benefits (EOSB) for a full-time worker in the UAE are calculated based on the worker’s basic salary and the length of service. (Article 51 of Federal Decree-Law No. 33/2021).
Calculation Method:
- For the first 5 years of service: 21 days of basic salary for each year worked.
- For each year beyond 5 years: 30 days of basic salary for each year worked.
Example:
If a worker has a basic salary of AED 10,000 and has worked for 7 years:
- For the first 5 years: 21 days × 5 years × (10,000 ÷ 30) = AED 35,000
- For the next 2 years: 30 days × 2 years × (10,000 ÷ 30) = AED 20,000
Total EOSB = AED 35,000 + AED 20,000 = AED 55,000