Situation:
The employee has worked at the company for 7 years. Basic salary is AED 10,000
What actions are required?
The following calculation method must be applied:
- 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
Basis:
- Article 51 of Federal Decree-Law No. 33/2021
Useful to know:
- The worker must have completed at least one year of continuous service to be eligible.
- EOSB is based on basic salary, excluding bonuses, allowances, and other benefits.
- If the worker resigns after more than 1 year of service, EOSB is still applicable.
- In cases of gross misconduct, the worker may not be entitled to EOSB.