End of service benefits (EoB) have been historically given to employees. People who worked for the same company for years were given a huge sum of money when they leave. The law provides for the payment of this benefit after completing a year of service for up to 24 years. But many companies removed this 24 year cap and offered this as a cash bonus as many employees change companies every 4, 3 or even 2 years.
In UAE, the calculation of the EoB for the first five years of service is based on 21 days for every year of service. For employees with more than five years of service, it becomes 30 days for every service year. The formula considers the basic salary plus the commission as the base and allowances are excluded. In recent instances, this commission is based on the employee’s primary role, for sales people it’s the sales commission.