Check before you act. Fees, rules and dates change. Confirm the details with the official authority before you pay or apply.
At a glance
- First 5 years
- 21 days of basic wage for each year of service
- After 5 years
- 30 days of basic wage for each additional year
- Cap
- The total cannot exceed two years of basic wage
- Eligibility
- Generally full-time private-sector employees with at least one year of continuous service
- Pay basis
- Basic salary only, not allowances
How UAE gratuity is calculated
For employees covered by the UAE labour law, gratuity is based on basic wage, not your total package. The daily wage is your monthly basic salary divided by 30. You then multiply by the number of days owed:
- 21 days of basic wage for each of the first five years of service.
- 30 days of basic wage for each year after the fifth.
- Partial years count in proportion.
- The total is capped at two years of basic wage.
You generally qualify once you have completed at least one year of continuous service.
End of service gratuity calculator
Estimate the gratuity for a full-time private-sector employee on a limited contract.
Worked examples
These examples use a basic salary of AED 8,000 a month, which is a daily wage of about AED 266.67.
| Service | Calculation | Gratuity |
|---|---|---|
| 3 years | 3 × 21 days = 63 days | AED 16,800 |
| 7 years | (5 × 21) + (2 × 30) = 165 days | AED 44,000 |
| 10 years | (5 × 21) + (5 × 30) = 255 days | AED 68,000 |
When different rules may apply
- Emiratis are covered by pension and social security rules instead.
- Some free zones have their own end of service schemes. Check with your free zone authority.
- Older contracts can follow transitional rules. If your contract started under the old labour law and was never converted, ask HR or MOHRE which calculation applies.
- Unpaid leave can reduce the service counted.
Tips before you rely on the number
- Check your contract for the exact definition of basic salary.
- Ask HR how they count your service dates and any unpaid leave.
- Keep a copy of your contract and salary slips.
- If the figure you are offered is lower than this estimate, ask for a written breakdown. MOHRE handles labour complaints if you cannot resolve it.
Frequently asked questions
21 days of basic wage for each of the first five years and 30 days for each year after that, up to a total of two years of basic wage.
No. It is calculated on basic wage. Housing, transport and other allowances are not included.
Gratuity is generally payable after at least one year of continuous service.
Some free zones have their own rules. Use the result as a guide and check with your free zone.