Unified UAE Legislation Database

Practical Guide: How is the end-of-service benefits (EoSB) calculated for a part-time worker?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Situation:

A part-time worker has been working 3 days a week for 4-hour working day in a company for a year. Basic salary is AED 10,000.

 

What actions are required?

The EoSB for part-time workers is calculated using this formula:

 

EoSB = (Actual working hours per year ÷ Full-time working hours per year) × 100% × EoSB for full-time worker

 

Step-by-Step Calculation:

1. Calculate Actual Working Hours (Part-Time)

- Work days/week: 3

- Hours/day: 4

- Weeks/year: 52

Actual working hours/year = 3 days/week × 4 hours/day × 52 weeks = 624 hours/year

 

2. Calculate Full-Time Working Hours (UAE Standard)

UAE standard full-time hours: 8 hours/day × 5 days/week = 40 hours/week

Full-time hours/year = 40 hours/week × 52 weeks = 2080 hours/year

 

3. Calculate Work Ratio (%)

Work Ratio = (624 hours/year per part-time ÷ 2080 hours/year per full-time) × 100 = 30 %

 

4. Calculate Full-Time EoSB for 1 Year

As per UAE Labour Law, the full-time EoSB for 1 year of service (if resignation or termination after 1 year) is 21 days’ basic wage. Basic wage of this worker is AED 10,000, so:

- Daily wage = AED 10,000 ...