The UAE gratuity rules in brief
| Service | Gratuity |
|---|---|
| Less than 1 year | No gratuity |
| Years 1 – 5 | 21 days’ basic wage per year |
| Each year after 5 | 30 days’ basic wage per year |
| Maximum | Total cannot exceed 2 years’ wage |
The rules come from Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. Since all employment contracts are now fixed-term, the old distinction between limited and unlimited contracts – and the reduced gratuity for resigning under an unlimited contract – no longer applies to service from February 2022 onward.
Worked examples
7 years of service, basic AED 10,000
- Daily basic wage = 10,000 ÷ 30 = AED 333.33
- First 5 years: 21 × 333.33 × 5 = AED 35,000
- Remaining 2 years: 30 × 333.33 × 2 = AED 20,000
- Total gratuity = AED 55,000 (well below the cap of AED 240,000)
3 years of service, basic AED 10,000
21 × 333.33 × 3 = AED 21,000.
Gratuity by years of service
| Years of service | Days of basic salary | Months of basic |
|---|---|---|
| 1 year | 21 | 0.7 |
| 2 years | 42 | 1.4 |
| 3 years | 63 | 2.1 |
| 4 years | 84 | 2.8 |
| 5 years | 105 | 3.5 |
| 6 years | 135 | 4.5 |
| 7 years | 165 | 5.5 |
| 8 years | 195 | 6.5 |
| 9 years | 225 | 7.5 |
| 10 years | 255 | 8.5 |
| 12 years | 315 | 10.5 |
| 15 years | 405 | 13.5 |
| 20 years | 555 | 18.5 |
Daily wage: ÷30 or ×12÷365?
Most calculations, including many employers’ HR systems, divide the monthly basic by 30 to get the daily wage. Some employers use basic × 12 ÷ 365, which gives a result about 1.4% lower. The calculator lets you see both; if you are in a dispute, MOHRE will confirm which applies to you.
What else you should receive at the end of service
- Salary for days worked in the final month
- Cash for unused annual leave (usually based on basic salary)
- Notice-period pay if notice was not served by the employer
- A repatriation ticket where the contract or law provides for it
- An experience/service certificate on request, free of charge
If your employer does not pay within 14 days, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its app, website or call centre 600590000.
Thinking of using your gratuity as a property down payment? Check what you can afford with the UAE mortgage calculator.
Estimates based on the UAE Labour Law for private-sector employees. Contract terms, free-zone rules, part-time work and unpaid leave can change the result – confirm with MOHRE or a legal adviser.
Frequently asked questions
How is gratuity calculated in the UAE?
For full-time private-sector employees under Federal Decree-Law No. 33 of 2021, gratuity is 21 days of basic wage for each of the first five years of service and 30 days of basic wage for each additional year, paid pro-rata for part years. The total cannot exceed two years’ wage.
Do I get gratuity if I resign?
Yes. Since the new Labour Law took effect on 2 February 2022, resigning no longer reduces gratuity for service after that date, provided you have completed at least one year of continuous service.
Is gratuity calculated on basic or gross salary?
On the last basic wage only. Housing, transport, telephone and other allowances, as well as commissions, are excluded.
When must my employer pay gratuity?
All end-of-service dues, including gratuity, must be paid within 14 days of the end of employment.
Does this apply in DIFC, ADGM or government jobs?
No. DIFC employees are covered by the DEWS savings scheme, ADGM has its own employment regulations, and federal or emirate government employees fall under separate HR and pension laws. UAE and GCC nationals generally receive pension contributions instead of gratuity.
Are unpaid leave days counted?
No. Days of unpaid absence are not counted towards your period of service, so enter them in the calculator to reduce the service period.
Last reviewed: October 2026