📢 2025 Updates
New Gratuity Rules 2025
Navigating the Changes in UAE Labor Law
The Landscape in 2025
In 2025, the "New Gratuity Rules" refer to the established regulations under Decree-Law No. 33 of 2021. While the law was introduced earlier, 2025 marks a period where these rules are fully entrenched, with no legacy "unlimited" contracts remaining in the private sector.
What You Must Know
- Full Entitlement: Resignation no longer penalizes your gratuity amount if you have served at least one year.
- Calculation Basis: Strictly on Basic Salary.
- Cap: Maximum gratuity is capped at 2 years' total salary.
Why "New Rules"?
People still search for "New Rules" because the shift from the old 1980 law was significant. The key takeaway is the simplification: one formula for all fixed-term contracts.