UAE Construction Gratuity Calculator 2026
EOSB for Workers, Engineers & Project Managers

Gratuity for daily wage, weekly wage and piecework workers

Article 51(5) says gratuity is calculated on the last basic wage for workers paid monthly, weekly or daily, and on the average daily wage for workers paid by piecework. Article 23 sets that average as what the worker received for actual working days in the 6 months before the claim. The days earned are the same as for monthly workers: 21 days of wage for each of the first 5 years and 30 days for each year after that, once you have one year of continuous service.

Days of unpaid absence are not counted in the service period (Article 51(4)), so keep a record of your attendance. Overtime and site allowances are not part of the daily wage used here. Other work patterns, such as part time work, are set by the Implementing Regulation under Article 52, so check the current rules for those.

Labour camp accommodation, food and deductions

Article 13(4) requires the employer to provide proper accommodation licensed by the competent authorities, or to pay an accommodation allowance in cash or include it in the wage. If the employer gives you a bed in a camp, that is not basic wage and does not raise your gratuity. If an allowance is paid instead, it is an allowance too.

Article 51(7) lets an employer deduct from gratuity only amounts payable under the law or a court judgment. Camp charges or a loan are not an automatic deduction, so ask for the legal basis of any line on the settlement sheet. See the guide to salary deductions and the final settlement checklist.

Contracts in UAE construction

Since 2 February 2022 every UAE employment contract is fixed term; older unlimited contracts had to be converted (Article 68 of Federal Decree-Law No. 33 of 2021). Construction contracts are often tied to a project. Gratuity is owed after one year of continuous service whether the contract ends, the employer terminates or you resign, and resignation no longer reduces it.

Wage Protection System and your records

The Wage Protection System (WPS) is the electronic salary transfer system maintained by MOHRE. Keep your payslips, bank statements and contract, because they show your basic wage and your dates of service if there is a dispute.

The u.ae portal says that under Ministerial Resolution No. 340 of 2026, salaries for the previous month are due on the first day of each Gregorian month, and employers must transfer at least 85% of the wages due on time. If wages are late, MOHRE steps up in stages: alerts from the second day, a stop on new work permits from the fifth day, and an automatic labour dispute from the sixteenth day for establishments with 25 or more workers affected. Construction is one of the sectors where unpaid workers across companies owned by the same employer are counted together. See u.ae: payment of salaries and wages for the full table.

If your employer does not pay your gratuity within 14 days of the contract ending (Article 53), submit a request to MOHRE under Article 54. MOHRE first tries to settle the dispute, and refers it to court if that fails. A claim is not heard after 2 years from the end of the employment relationship (Article 54(9) as amended in 2024). Steps are in how to file a MOHRE complaint.

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