Gratuity Calculation in UAE for 2 Years

After 2 years of continuous service in the UAE private sector you are entitled to 42 days of basic salary as end-of-service gratuity – roughly 1.4 months of basic pay.

Basic only – exclude housing, transport and other allowances
Not counted as service
Daily wage basis:
Your gratuity
AED 14,000
Service counted
2 y 0 m 0 d
Daily basic wage
AED 333.33
First 5 years (21 days/yr)
AED 14,000
After 5 years (30 days/yr)
AED 0
Cap (24 months’ basic)
AED 240,000

How 42 days is worked out

Gratuity after 2 years by basic salary

Basic salary (AED/month)Gratuity (AED)
3,0004,200
5,0007,000
7,50010,500
10,00014,000
15,00021,000
20,00028,000
30,00042,000
50,00070,000

Other service periods

1 year · 3 years · 4 years · 5 years · 6 years · 7 years · 8 years · 9 years · 10 years · 12 years · 15 years · 20 years

Frequently asked questions

How much gratuity do I get after 2 years in the UAE?

42 days of your last basic salary – about 1.4 months’ basic pay. With a basic salary of AED 10,000 that is AED 14,000.

Does resigning reduce it?

No. Under Federal Decree-Law 33 of 2021, gratuity for service from February 2022 is the same whether you resign or your employer ends the contract, as long as you have at least one year of service.

Last reviewed: October 2026. Private-sector rules under UAE Labour Law; DIFC, ADGM and government employees differ.