Salary, leave and deductions

Commission and bonus in UAE final settlement

Commission and bonus disputes usually turn on the contract, scheme rules, target evidence and payment timing. They should not be assumed to form part of statutory gratuity.

Reviewed: 26 July 2026Educational guidance, not legal advice

Identify the type of payment

Distinguish fixed contractual commission, discretionary bonus, target incentive and reimbursement. Each can have different vesting and payment conditions.

Check when the amount becomes earned

Review whether payment depends on invoice collection, customer payment, a payout date, continued employment or management approval.

Preserve performance evidence

Keep sales reports, target confirmations, commission statements and prior calculation examples. A verbal promise is harder to reconcile.

Keep it separate from statutory calculations

Enter a supported commission or bonus as a contractual addition in the settlement, while traditional federal gratuity remains based on the applicable basic wage.

Questions to ask HR or payroll

  1. Which plan or contract governs this payment?
  2. What transactions are eligible?
  3. Has the earning condition been met?
  4. When is the normal payout date?
  5. Does termination change only timing or eligibility?

Frequently asked questions

Is commission included in UAE gratuity?

Traditional federal gratuity is normally based on basic wage, not automatically on variable commission.

Can a discretionary bonus be demanded?

That depends on the wording, established practice and facts. A discretionary label does not answer every dispute.

Where should commission appear in the calculator?

Use a separate contractual-addition line and keep the supporting calculation.

Official sources used

Rules can change and facts can be disputed. Review the source that applies to your jurisdiction and current circumstances.

Ministry of Human Resources and Emiratisation (MOHRE)Federal Decree-Law No. 33 of 2021 and amendmentsUAE GovernmentPayment of salaries and wages