How Do I Calculate My Indemnity?

In the UAE and GCC, calculating indemnity—typically end-of-service gratuity—follows Federal Decree Law No. 33 of 2021 on Labour Relations. For unlimited contracts, it's 21 days' basic salary per year for the first five years, then 30 days per year thereafter, capped at two years' salary. Limited contracts yield half: 7 and 15 days respectively. Exclude allowances; base on last basic wage. Tenants under RERA Law No. 26 of 2007 calculate security deposit refunds similarly, deducting damages from one month's rent equivalent. Use your payslip and contract duration to compute accurately.

Key Formula for Labour Indemnity

Under UAE Federal Decree Law No. 33 of 2021, Article 51 outlines end-of-service indemnity for employees with one+ years' service. For indefinite contracts, gratuity equals 21 days' basic salary per year for the first five years of service, rising to 30 days per year after. Total capped at 48 days' pay equivalent to two years' salary. Example: An employee with 7 years at AED 10,000 basic salary gets (5 × 21 × 10,000 / 30) + (2 × 30 × 10,000 / 30) = AED 35,000 + AED 20,000 = AED 55,000, but capped if exceeding limits. For fixed-term contracts, halve to 7 and 15 days per year. Saudi Arabia's Labour Law mirrors this with 15-21 days, adjusted for nationality. Reference Article 132 for deductions like absences. Payslips provide the basic salary figure; prorate partial years by actual days worked.

Handling Rental Indemnity Claims

For tenants in Dubai, indemnity often means reclaiming security deposits under RERA Law No. 26 of 2007 and Executive Regulations. Landlords hold one month's rent as deposit; upon tenancy end, deduct for damages like unpaid utilities (e.g., DEWA bills) or repairs (capped at fair market value). Calculate refund: Deposit minus documented deductions. Example: AED 50,000 deposit, AED 5,000 utilities owed, AED 3,000 carpet repair = AED 42,000 refund. If disputed, RERA's Rental Dispute Centre applies mediation; awards include 5% annual interest on delayed refunds per Article 19. In Saudi Arabia, under Real Estate Law, similar one-month deposits apply, with claims via Ejar portal. Warnings: Inspect property at handover with photos; clauses in Ejari-registered contracts may limit indemnity to actual losses, not punitive. GCC-wide, Bahrain's Law No. 2 of 2001 allows 10% deductions only for verifiable damage. Track all receipts to substantiate claims.

Key Points

• • UAE Article 51: 21 days basic pay/year first 5 years, indefinite contracts.
• • Capped at two years' salary total under Federal Decree Law No. 33 of 2021.
• • Fixed-term: Half rates—7 days first 5 years, 15 thereafter.
• • RERA Article 19: Rental refunds minus utilities, repairs from one-month deposit.
• • Upload contract to TenderScan for automated indemnity clause extraction and calculation.