Gratuity for Part-Time & Flexible Workers in the UAE (2026)

The landscape of employment in the United Arab Emirates has transformed significantly in recent years. With the introduction of UAE Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, the Ministry of Human Resources and Emiratisation (MOHRE) formally recognized alternative work models, including part-time, temporary, and flexible working arrangements.

One of the most common questions arising from this shift is: "Are part-time and flexible workers entitled to end-of-service gratuity?"

The short answer is yes. The new labour law ensures that non-traditional workers are protected and receive their fair share of end-of-service benefits (EOSB). However, the calculation differs significantly from that of full-time employees. In this comprehensive 2026 guide, we break down exactly how gratuity is calculated for part-time and flexible workers in the UAE.

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1. Understanding the New Work Models Under UAE Labour Law

The UAE Labour Law (Decree-Law No. 33 of 2021) outlines several work models to accommodate the evolving global economy. Understanding your specific contract type is the first step in determining your gratuity rights.

• Full-Time: Working for a single employer for the maximum standard working hours (typically 48 hours per week).
• Part-Time: Working for one or more employers for a specified number of hours or days, less than the standard full-time hours.
• Temporary Work: Employment for a specific task or period, ending when the task or period is completed.
• Flexible Work: Employment where hours or days change depending on the employer's needs and the economic variables.

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2. The Pro-Rata Gratuity Rule for Part-Time Workers

For full-time employees, gratuity is calculated based on 21 days of basic salary for each of the first five years, and 30 days for each subsequent year.

For part-time and flexible workers, the UAE government introduced a pro-rata system. This means your gratuity is calculated proportionally to the hours you work compared to a standard full-time employee.

The Official Calculation Formula

According to the executive regulations of the UAE Labour Law, the formula for calculating end-of-service gratuity for part-time workers is:

(Actual Working Hours ÷ Standard Working Hours in a Year) × Full-Time Gratuity Entitlement = Part-Time Gratuity

Let's break down these variables:

1. Actual Working Hours: The total number of hours the part-time employee worked per year.
2. Standard Working Hours: The total number of hours a full-time employee works per year (usually 8 hours/day × 6 days/week × 52 weeks = 2,496 hours/year, or 48 hours/week × 52 weeks). Sometimes employers use a 40 hours/week standard (2,080 hours/year).
3. Full-Time Gratuity Entitlement: What the employee would have received if they worked full-time at the same hourly rate.

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3. Step-by-Step Worked Example: Part-Time Employee

To make this crystal clear, let's look at a practical example of a part-time employee in Dubai.

Scenario:

• Employee: Sarah
• Contract Type: Part-Time
• Working Hours: 20 hours per week
• Basic Salary: AED 4,000 per month (for 20 hours/week)
• Years of Service: 3 years
• Company's Full-Time Standard: 48 hours per week

Step 1: Determine the Full-Time Equivalent Salary

If Sarah earns AED 4,000 for 20 hours, what would a full-time (48 hours) basic salary be at her rate?

• Hourly rate equivalent: AED 4,000 / (20 hours × 4.33 weeks) = AED 46.18 / hour
• Full-time equivalent basic salary: (AED 46.18 × 48 hours × 4.33 weeks) ≈ AED 9,600 per month. (Alternatively, simple ratio: AED 4,000 × (48/20) = AED 9,600)

Step 2: Calculate the Hypothetical Full-Time Gratuity

If Sarah worked full-time at a basic salary of AED 9,600 for 3 years:

• Daily wage = AED 9,600 ÷ 30 = AED 320
• 21 days for each year = 21 × AED 320 = AED 6,720 per year
• Total full-time gratuity for 3 years = AED 6,720 × 3 = AED 20,160

Step 3: Apply the Pro-Rata Formula

Now, we apply the percentage of hours Sarah actually worked compared to full-time.

• Sarah's hours: 20 hours/week
• Standard hours: 48 hours/week
• Pro-rata multiplier: 20 ÷ 48 = 0.4166 (or 41.66%)

Final Gratuity: AED 20,160 × 41.66% = AED 8,400

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4. How Does This Apply to Flexible Workers?

Flexible workers do not have fixed weekly hours. Their schedule changes based on business demands. Calculating gratuity for flexible workers requires tracking the total actual hours worked over the entire duration of employment.

Calculation for Flexible Contracts

1. Calculate Total Hours: Sum up all the hours the employee worked during their entire service period.
2. Determine Annual Average: Divide the total hours by the number of years worked to find the average hours per year.
3. Compare to Standard: Divide the average annual hours by the standard annual full-time hours (e.g., 2,496 hours).
4. Calculate: Multiply the resulting fraction by the gratuity a full-time employee would receive.

Flexible Worker Example Table

Variable	Value
Total Service Duration	2 Years
Total Hours Worked (Year 1)	900 hours
Total Hours Worked (Year 2)	1,100 hours
Grand Total Hours	2,000 hours
Average Hours / Year	1,000 hours
Standard Full-Time Hours / Year	2,496 hours (48 hrs × 52 weeks)
Pro-Rata Fraction	1,000 ÷ 2,496 = 0.40 (40%)

If the hypothetical full-time gratuity was AED 15,000, this flexible worker would receive: AED 15,000 × 40% = AED 6,000

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5. Key Exceptions and Considerations

While the pro-rata rule is clear, there are several nuances both employers and employees must be aware of in 2026:

• Minimum Service Requirement: The one-year continuous service rule applies to part-time and flexible workers as well. If you work for 11 months and resign, you are not entitled to gratuity.
• Unpaid Leave: Any days taken as unpaid leave are deducted from the total length of service and are not factored into the gratuity calculation.
• Multiple Employers: Part-time workers with multiple employers are entitled to gratuity from each employer, provided they meet the one-year threshold with each specific employer. Each employer calculates gratuity based on the hours worked for their specific company.
• Transitioning from Part-Time to Full-Time: If an employee transitions from part-time to full-time (or vice versa) within the same company, the gratuity must be calculated in two separate phases. You calculate the part-time years using the pro-rata formula, and the full-time years using the standard formula, then add them together.

6. The Impact of the UAE Savings Scheme (DEWS / Alternative Funds)

As of recent legislative updates, the UAE has been rolling out alternative end-of-service benefits schemes, where employers contribute a monthly percentage of the basic salary into an investment fund (like the DEWS scheme in DIFC, which is expanding to mainland UAE).

If your employer has opted into the Voluntary Alternative End-of-Service Benefits Scheme, the calculation shifts from a lump sum upon termination to monthly contributions.

• For full-time employees, employers contribute 5.83% of the basic salary (for under 5 years of service).
• For part-time and flexible workers enrolled in this scheme, the employer must contribute the same 5.83% based on the actual part-time basic salary earned that month.

7. Conclusion

The inclusion of part-time and flexible workers in the UAE’s end-of-service gratuity framework highlights the country's commitment to creating a dynamic, fair, and modern labor market. While the math involves an extra step compared to full-time calculations, the underlying principle is simple: you earn gratuity exactly in proportion to the time you put in.

Always ensure your employment contract clearly states your basic salary and your expected working hours. When in doubt, consult the MOHRE app or a legal professional to ensure your end-of-service rights are fully protected.