Commission payments in DIFC will only feature on your gratuity calculation if they are deemed part of your Basic Wage and not deemed an Additional Payment or Allowance.
'Basic Wage' - means, subject to the provisions of Article 66(3)(a), an Employee’s Annual Wage, excluding
any Allowance or Additional Payment.
'Additional Payment' - means any bonus, grant, commission or any other payment made by an Employer to an Employee that is discretionary, non-recurring or expressly agreed not to form part of an Employee’s Wage or Allowance.
'Allowance' - any allowance payable to an Employee pursuant to an Employment Contract, which includes (but is not limited to) housing, travel, education, social and entertainment and any benefit received in kind by an Employee and, where such allowance (or any part thereof) is not paid to an Employee in equal parts for each Pay Period over a twelve (12) month period, the aggregate annual allowances payable to an Employee shall be divided by the number of Pay Periods for that Employee over a twelve (12) month period for purposes of determining an Employee’s Wage for a Pay Period.
66. Gratuity Payment
(1) Subject to Article 66(6), an Employee who is not required to be registered with the GPSSA under Article 65(1), and who completes continuous employment of one (1) year or more with their Employer, including any period of Secondment, is entitled to a Gratuity Payment on the termination of their employment.
(2) An Employee’s Gratuity Payment shall be calculated as follows:
(a) an amount equal to twenty one (21) days of the Employee’s Basic Wage for each year of the first five (5) years of service; and
(b) an amount equal to thirty (30) days of the Employee’s Basic Wage for each additional year of service,
provided that the total of the Gratuity Payment shall not exceed an amount equal to two (2) times the Annual Wage of the Employee.
(3) For purposes of Article 66(2):
(a) an Employee’s Basic Wage shall not be less than fifty percent (50%) of the Employee’s Annual Wage; and
(b) the daily rate of an Employee’s Basic Wage shall be calculated by dividing the Employee’s Basic Wage by three hundred and sixty five (365).
(4) Where the Termination Date occurs part way through a year, the Gratuity Payment shall be calculated on a pro rata basis.
(5) An Employer may deduct from the Gratuity Payment any amounts due and owing to the Employer by an Employee pursuant to the provisions of Articles 20 or 28(2).
(6) Subject to Article 66(7), Article 66(1) does not apply to an Employee who agrees in writing to receive contributions from their Employer into a pension scheme, retirement savings scheme or any substantially similar scheme, whether located in the UAE or elsewhere, instead of a Gratuity Payment.
(7)The aggregate contributions made by an Employer in accordance with Article 66(6) must not be less than the Gratuity Payment the Employee would have been entitled to receive under Article 66(1), provided that the risk of any investment into a pension scheme, retirement savings scheme or any substantially similar scheme, if placed with a third party in a fiduciary capacity, shall be that of the Employee.