Arabic Gratuity Letter: Verbal vs Written Calculation

You’ve been with the company for six years. You resigned. HR told you your gratuity would be a certain amount. Then they handed you a settlement letter, in Arabic, and asked you to sign it. You signed. When the money arrived, it was thousands less than what you were told.

The Arabic letter you signed had the lower number. What HR told you verbally doesn’t matter. You agreed to what the document says.

Why the numbers don’t match

Gratuity calculations look simple but hide several traps:

• Basic salary vs total salary. Gratuity is calculated on basic salary only. Not total. If your total package is significantly higher than your basic salary, the gratuity is based on the basic portion only. Many employees calculate using total salary and get a higher number in their heads.
• Deductions. Companies sometimes deduct outstanding loans, salary advances, or notice period shortfalls from the gratuity. These deductions should appear in the settlement letter, but if the letter is in Arabic and you can’t read it, you won’t know what was deducted.
• Calculation errors. Mistakes happen. The wrong start date, the wrong salary figure, or a miscalculation of the service period can all produce a lower number.
• Resignation vs termination. Under UAE Labour Law, employees who resign with less than five years of service receive a reduced gratuity (two-thirds in some cases). Employees who are terminated receive the full amount. If you were laid off and are in your grace period, getting these documents translated is time-sensitive.

The Arabic document problem

Many companies produce settlement letters in Arabic, especially the final settlement that you’re asked to sign before receiving your end-of-service payment. The Arabic version is the legally binding one. If you sign it without reading it, you’ve agreed to whatever it says.

Getting the settlement letter translated before you sign takes an hour. It shows you the exact figures: base salary used, service period calculated, deductions applied, and the final amount. If any of these are wrong, you can challenge them before signing, not after.

How to check your gratuity

Step 1: Know the formula. 21 days of basic salary per year for the first five years. 30 days per year after that. Total cannot exceed two years’ salary. MOHRE has a gratuity calculator on their website and app.

Step 2: Get the Arabic letter translated. Before signing anything, understand what you’re agreeing to. The translation shows you the company’s calculation and any deductions.

Step 3: Compare. Does the company’s figure match MOHRE’s calculator? If not, identify where the difference is. Wrong basic salary? Wrong service period? Unexpected deductions?

Step 4: Raise it in writing. If the numbers don’t match, email HR with your calculation. Reference the specific discrepancy. Keep it factual.

Step 5: File with MOHRE if needed. If HR doesn’t resolve it, file a complaint through the MOHRE app or call 800 60. MOHRE offers free mediation. Most disputes are resolved at this stage. If mediation fails, it goes to labour court, where the Arabic settlement letter becomes the key document.

Don’t sign first, translate later

The worst position to be in is having already signed an Arabic document that says you accepted a lower figure. This is worse when you believe you’re owed more. At that point, you’re arguing against your own signature.

If your employer hands you an Arabic settlement letter, take it home. Get it translated. Verify the numbers. Then sign, or push back.

If you need your settlement letter or end-of-service documents translated, send them on WhatsApp: +971 50 862 0217. We’ll tell you what the numbers say before you sign.