{
  "id": 9093488,
  "title": "UAE gratuity calculation: What happens if your basic salary is reduced?",
  "url": "https://urgent.news/2026/09/22/uae-gratuity-calculation-what-happens-if-your-basic-salary-is-reduced",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-22T04:22:32.000Z",
  "source": {
    "name": "Gulf News",
    "slug": "gulf-news",
    "url": "https://gulfnews.com/ask-gulf-news/uae-gratuity-calculation-what-happens-if-your-basic-salary-is-reduced-1.500682820"
  },
  "original_language": "en",
  "account": "A salary cut can significantly impact an employee's end-of-service gratuity in the UAE. Under Federal Decree-Law No. 33 of 2021, the basic wage is the amount specified in the employment contract, which must be clearly stated. If an employer cuts an employee's salary without written agreement, the lower amount generally cannot be used as the basis for gratuity. However, if the original, higher salary still appears in the contract and offer letter, and the employee never signed an agreement accepting the reduction, they may have grounds to argue for the original basic wage to be used in calculating their gratuity. Continuing to work under the reduced salary could be used by an employer to argue implicit acceptance. Employees should document their objection in writing before resigning. If the employee signed a variation or amended contract reflecting the lower salary, that reduced figure could be used. If the employer refuses to recalculate the gratuity, employees can file an individual labour complaint with the Ministry of Human Resources and Emiratisation.",
  "summary": "Dubai: A salary cut can affect more than your monthly income, it could also have an impact on the end-of-service gratuity you receive when you leave your job. But if your employer reduced your salary without your written agreement, does the lower amount automatically become the basis for your gratuity? That is the question a Gulf News reader is facing after their employer cut their salary by 20…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}