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Calculation of severance pay for part-time employment under UAE law

End-of-Service Benefits (EOSB) are monetary rewards that an employee receives from their employer upon termination of part-time employment under UAE . EOSBs are a way of expressing gratitude and appreciation for the employee’s contribution and loyalty to the organization.

EOSBs are subject to UAE Labour Laws as amended by Federal Decree No. 33 of 2021 and its regulations. EOSB for full-time employees Pursuant to Art. 51 of the UAE Labour Code, the EOSB for full-time employees is calculated based on the following criteria: The employee must have worked continuously for at least one year. A daily wage is paid for each year of service.

If an employee has worked for more than five years, after the first five years he is entitled to 30 days’ part-time employment under UAE wages for each year worked. In any case, the total amount of the EOSB must not exceed the equivalent of two annual salaries. An employer can deduct from the EOSB any amount that an employee owes his employer.

The employer must pay the EOSB within 14 days of the end of the contract. EOSB for part-time workers and other types of work After art. 52 UAE Labour Laws and Art. According to Art. 30 of its Implementing Rules, part-time employment under UAE the EOSB for part-time employees and other forms of employment is calculated according to the following mechanisms: The annual contracted hours divided by the annual contracted full-time hours multiplied by 100 gives the percentage from which the EOSB is to be This percentage is then multiplied by the value of the EOSB due under the full-time employment contract.

  • For example, if a part-time employment contract provides for eight hours a day, six days a week, then:
  • The number of working hours per year with a part-time contract is 4 x 5 x 52, i.e. 1040 hours.
  • The number of full-time working hours per year is 8 x 6 x 52, i.e. 2,496 hours.
  • The percentage used to calculate the EOSB is (1040 x 2496) x 100 = 41.67%.
  • If a part-time worker’s base salary is AED 10,000 per month and they have worked for three years, then:
  • The EOSB amount payable under a full-time employment contract is (10,000 x 12 x 30) x (21 x 3) = AED 252,000.
  • The EOSB payable under a part-time employment contract is (252,000 x 41.67) / 100 = AED 104,994.

The employee works four hours a day, part-time employment under UAE five days a week, full-time EOSB is based on the last base salary to which the worker was entitled, with no allowances or bonuses. EOSB is calculated as follows: If the employee has been employed for less than a year, he is not entitled to EOSB. If the worker has worked for more than one year but less than five years, he is entitled to EOSB


EOSB is an important part of the part-time employment under UAE. They vary depending on whether the worker is employed on a full-time basis, a part-time basis, or any other type of work arrangement. The UAE Labour Law and its implementing regulations provide clear guidelines on how to calculate EOSB for different types of workers. Workers should be aware of their rights and entitlements regarding EOSB and ensure that they receive them in a timely manner.EOSB is a significant component of part-time employment in the UAE. Worker is employed in any form of employment arrangement.