Severance pay in the United Arab Emirates 2026: notice, severance and unemployment benefit
When a job ends in the United Arab Emirates, the calculator above estimates the statutory severance pay, the notice period, the payment for unused leave and the unemployment benefit, with the tax on each part. Below you will find the rules in brief and examples for different lengths of service.
The rules in brief
- End-of-service gratuity: Expatriates with at least a year of continuous service get 21 days of basic salary for each of the first 5 years and 30 days for each further year, pro rata for part years, at most two years’ wage. A day is the basic salary ÷ 30. It is paid however the contract ends, including a resignation. UAE nationals are covered by the pension law instead.
- Notice and ILOE: The notice period is 30 to 90 days, as agreed in the contract. If you lose your job (not by resignation or for misconduct) after at least 12 months in the ILOE scheme, it pays 60% of your average basic salary of the last 6 months, at most AED 10,000 a month (AED 20,000 when the basic salary is above AED 16,000), for up to 3 months.
Example: AED 15,000 gross a month
| Years of service | Severance, net (AED) | Notice period |
|---|---|---|
| 1 | 6,300 | 30 to 90 days, as in your contract |
| 2 | 12,600 | 30 to 90 days, as in your contract |
| 3 | 18,900 | 30 to 90 days, as in your contract |
| 5 | 31,500 | 30 to 90 days, as in your contract |
| 10 | 76,500 | 30 to 90 days, as in your contract |
| 15 | 121,500 | 30 to 90 days, as in your contract |
| 20 | 166,500 | 30 to 90 days, as in your contract |
| 25 | 211,500 | 30 to 90 days, as in your contract |
Case: “Dismissed or made redundant”, leaving on 31 December 2026, without unused leave. These are legal minimums; a contract or collective agreement may give more.
What you receive: an example
With 9.8 years of service and 10 days of unused leave, ending on 31 December 2026:
| Item | Gross (AED) | Net (AED) |
|---|---|---|
| End-of-service gratuity (21 days’ basic salary a year for 5 years, then 30 days) | 75,020.55 | 75,020.55 |
| Unused leave (10 days) | 6,923.08 | 6,923.08 |
| Total | 81,943.62 | 81,943.62 |
Unemployment benefit
In this example the unemployment benefit comes to about AED 16,200 in total (ILOE: AED 5,400 a month (60% of your basic salary, capped) for up to 3 months, if you subscribed for at least 12 months). The conditions, such as the contributions you need, are listed in the rules above.
Frequently asked questions
How much severance do I get after 10 years in the United Arab Emirates?
About AED 76,500 net with AED 15,000 gross a month, for “Dismissed or made redundant”. The notice period is 30 to 90 days, as in your contract.
How long is the notice period?
In the example: 30 to 90 days, as in your contract, whatever the length of service. A contract can require more.
Do I get unemployment benefit?
In the example, about AED 16,200 (ILOE: AED 5,400 a month (60% of your basic salary, capped) for up to 3 months, if you subscribed for at least 12 months). The conditions are listed in the rules above.
Are these amounts exact?
They are estimates of the legal minimum under the 2026 rules. Your contract, a collective agreement or a court decision can give more.
Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.