Superannuation explained for UAE expats: the 12% rate and the 35% tax that could wait at the exit

Tips · 2026-11-06 · 8 min read

Superannuation explained for UAE expats in one line: your UAE gratuity is a lump sum your employer settles when the contract ends, while Australian super is retirement money that builds up while you work and is paid out under different rules. The general super guarantee rate is 12% for 1 July 2026 to 30 June 2027, and a temporary visa holder who leaves Australia may be able to claim it back, with tax taken out. If you work in Dubai, Abu Dhabi, Doha, Riyadh or Muscat and are weighing a sponsored move, this is the money difference to understand before you resign.

What your UAE gratuity actually is

"End-of-service gratuity" is the official term for the payment due to a UAE private-sector worker at the end of employment. It is worked out on your last basic salary, and it leaves out allowances such as housing or transport. Our guide on how your end-of-service gratuity is calculated walks through the arithmetic.

The UAE government's page sets the pattern. Under 1 year of service means no gratuity. More than 1 year but less than 5 years earns 21 days' salary for each year. After the first 5 years, each further year earns 30 days' salary. The total cannot exceed the wage of 2 years.

Your employer must pay wages, other entitlements and gratuity within 14 days of the end of the contract. The official explanation is on the u.ae end-of-service benefits page. Everything above describes the UAE private sector; if you work in Saudi Arabia, Qatar, Oman, Kuwait, Bahrain or Jordan, read your own country's rules, because this guide does not cover them.

The UAE savings scheme sits closer to super

Some UAE employers use an alternative end-of-service savings scheme. Instead of one figure calculated at the end, the employer contributes 5.83 per cent of your monthly basic salary if you have not completed 5 years of service, or 8.33 per cent if you have served more than 5 years. That is a contribution-based design, which makes it the nearest UAE cousin of super. Our piece on the savings scheme versus gratuity and five questions for HR helps you find out which one applies to you.

What Australian super looks like

Super is Australia's system for retirement savings. The ATO publishes the general super guarantee rate, which is 12% for the period 1 July 2026 to 30 June 2027. Check the ATO super guarantee page for which earnings the rate applies to, because the rate is only part of the picture.

Your employer usually pays wages into your bank account and gives you a pay slip showing earnings, tax paid and super contributions. Pay slips must be given within 1 working day of pay day. Read the super line on each one: it is how you see the money building up.

Visa holders and migrant workers have the same workplace rights and protections as all other employees in Australia, including pay, leave and final pay. A sponsored role is no reason to accept less than your contract and the law provide. If you are still working out whether a role suits you, browse live roles such as a baker in Mackay or a carpenter in Cairns to see the kind of employer-sponsored work on offer.

Gratuity versus super side by side

Question	UAE gratuity	Australian super
When does it reach you?	At the end of the contract, within 14 days of termination	It builds up while you work; temporary visa holders can claim after leaving Australia
How is it measured?	Days of basic salary per year of service, capped at the wage of 2 years	The super guarantee rate, 12% for 2026-27
Who sets the rules?	The UAE Labour Law, Federal Decree Law No. 33 of 2021	The ATO and Australian super law
Is tax taken out when it leaves?	Check the UAE pages; this guide has no verified figure	Yes, on a departing payment: 35% on the taxed element

What happens to your super when you leave Australia

A departing Australia superannuation payment (DASP) can be claimed when the super was built up on a temporary resident visa, other than subclass 405 or 410. The visa must have ceased, you must have left Australia with no other active Australian visa, and you must be neither an Australian nor a New Zealand citizen nor an Australian permanent resident. The ATO sets this out on its DASP page.

You cannot claim until after you have left, but the ATO recommends starting the application before you go, using the DASP online application system. Anyone planning to settle permanently should know the permanent-resident condition: it changes whether DASP applies at all.

Tax is the part that surprises people. DASP tax rates from 1 July 2017 are nil on the tax-free component, 35% on the taxed element and 45% on the untaxed element. For working holiday makers the rate is 65% on both. The ATO payments from super page explains the components. A fund statement tells you how your balance is split.

Before you resign in the UAE: a short order of events

Check your contract and your payslips to see whether you are on gratuity or the savings scheme.
Confirm your notice period, which must be at least 30 days and no more than 90 days. Our guide on fitting the notice period around your visa grant covers the timing.
Ask HR for the written final settlement, because the company must send MOHRE a letter confirming you have received all wages and end-of-service benefits when the labour contract is cancelled. Keep a copy: proof of your service dates also helps when you show verified work history on a profile such as Talent Tabloid.
Get a tax file number once you hold a valid work-rights visa: it is free through the ATO's online system, and it should arrive within 28 days.
Keep your Australian pay slips and fund statements, so a later DASP claim is simple.

Common mistakes

The first mistake is expecting a super payout to work like a gratuity cheque. Gratuity is settled by your employer within 14 days of the contract ending. DASP cannot even be claimed until you have left Australia, and tax comes off it.

The second is forgetting the cap and the basic-salary rule on the UAE side. Allowances do not count, so a package with a big housing component may give a smaller gratuity than you expect. Timing matters too: our guide to the UAE visa cancellation grace period is worth reading in the same sitting.

The third is treating the comparison as personal advice. Your fund, your visa and your years of service all change the result. For visa questions that depend on your own case, book a consultation with a registered migration agent. If you want to see how the sponsored route works, the guide to Australia's 482 visa in depth is a good start. For a view of the payslip itself, MigrateJobs has a guide to the tax, super and leave lines on an Australian payslip.

Frequently asked questions

Is UAE gratuity the same as Australian super?

No. UAE gratuity is an end-of-service payment worked out from your basic salary and years of service, paid after the contract ends. Super is retirement money that builds up while you work, at a rate the ATO publishes each year.

What is the super guarantee rate in Australia?

The general super guarantee rate is 12% for the period 1 July 2026 to 30 June 2027, as published by the ATO. Check the ATO page for the current rate and for which earnings it applies to before you rely on a figure.

Can I take my super with me when I leave Australia?

You may be able to claim a departing Australia superannuation payment if your super was built up on an eligible temporary resident visa, the visa has ceased and you have left with no other active Australian visa. You cannot claim until you have left, and tax is taken from the payment.

How much tax is taken from a DASP?

The ATO lists nil on the tax-free component, 35% on the taxed element and 45% on the untaxed element. Working holiday makers pay 65% on both elements, so the split of your balance decides the result.

Does my UAE gratuity include my housing allowance?

No. UAE gratuity is calculated on your last basic salary and does not include allowances such as housing or transport. Ask HR for the basic salary figure in writing before you make any plan around the payment.

Key takeaways

UAE gratuity is settled by your employer when the contract ends; super builds up while you work.
The general super guarantee rate is 12% for 2026-27, shown on your pay slip.
A DASP can only be claimed after you leave Australia, and only if the visa and residency conditions are met.
Tax on a DASP is 35% on the taxed element, and 65% for working holiday makers.
Check the ATO and u.ae pages for your own situation before you plan around either payment.

#superannuation #uae expats #australian super #end of service gratuity #dasp #move from uae to australia #australia jobs from dubai #visa sponsorship