Why the split matters
| Entitlement | Based on |
|---|---|
| Gratuity | Basic salary |
| Unused leave on leaving | Basic salary |
| Overtime | Basic salary |
| Unpaid salary | Total salary |
| Pay in lieu of notice | Total salary |
Worked example
Basic AED 6,000, housing AED 3,000 and transport AED 1,000 make a total of AED 10,000. The daily basic is AED 200 and the daily total is AED 333.33. The hourly basic is 6,000 × 12 ÷ 365 ÷ 8 = AED 24.66.
A low basic with high allowances means lower gratuity, overtime and leave pay, so check the split before you sign a contract.