UAE Gratuity Calculator Guide 2026: How End-of-Service Pay Is Worked Out
How UAE private-sector gratuity works: 21 days' basic pay a year for the first 5 years, 30 days after that, a 2-year cap, and payment within 14 days. With worked examples.
UAEIn brief
- UAE gratuity is 21 days of basic salary per year for the first 5 years, then 30 days per year after that.
- You need at least one year of continuous service. Allowances are not included.
- Total gratuity can never exceed two years' wages.
- The employer must pay gratuity and final dues within 14 days of the contract ending.
| Country | UAE |
|---|---|
| Organization | UAE Government (u.ae) / MoHRE |
| Official source | UAE Government portal – End of service benefits in the private sector ✓ u.ae |
End-of-service gratuity is the lump sum a UAE private-sector employer owes an expat worker when the job ends. It is one of the most common questions workers have, and one of the most common disputes. Here is how it works under the current UAE Labour Law.
Who gets gratuity
- You must have completed at least one year of continuous service with the employer. Below one year, no gratuity is due.
- Once you pass one year, part-years count pro rata.
- Unpaid absence days do not count as service.
- UAE nationals are covered by the pensions system instead.
The formula
Gratuity is based on your basic salary only. Housing, transport and other allowances are not included.
| Years of service | Gratuity per year |
|---|---|
| Years 1 to 5 | 21 days of basic salary |
| Each year after 5 | 30 days of basic salary |
The total can never be more than two years' wages.
To get your daily basic wage, divide your monthly basic salary by 30.
Worked examples
Example 1: 3 years, basic salary AED 6,000
- Daily wage: 6,000 ÷ 30 = AED 200
- 21 days × 3 years = 63 days
- Gratuity: 63 × 200 = AED 12,600
Example 2: 7 years, basic salary AED 9,000
- Daily wage: 9,000 ÷ 30 = AED 300
- First 5 years: 21 × 5 = 105 days
- Next 2 years: 30 × 2 = 60 days
- Total: 165 days × 300 = AED 49,500
When it must be paid
Your employer must pay your gratuity, final salary and other dues within 14 days of the contract ending. The employer may deduct any amounts you legitimately owe the company.
Part-time and other work models
For part-time workers, gratuity is reduced in proportion to the hours worked compared with a full-time job. Temporary contracts of less than one year do not earn gratuity.
The voluntary savings scheme
Some employers have moved staff to the UAE's voluntary end-of-service savings scheme. Instead of a lump sum at the end, the employer pays a monthly contribution into an approved investment fund:
- 5.83% of basic salary a month for staff with under 5 years' service
- 8.33% a month for staff with more than 5 years
If you join, gratuity earned before joining must be settled, and you can withdraw your savings when your job ends.
If your employer doesn't pay
- Ask in writing for your final settlement statement.
- Still unpaid after 14 days? Report it to MoHRE. Complaints are free and can be lodged online or by phone on 600590000.
Check your contract and your basic salary figure carefully, because gratuity is calculated on basic pay, not your total salary.
Frequently asked questions
How is gratuity calculated in the UAE?
Divide your monthly basic salary by 30 to get a daily wage. Multiply by 21 days for each of the first 5 years, and by 30 days for each year after that. The total cannot exceed two years' wages.
How much gratuity do I get after 3 years in the UAE?
21 days of basic salary for each year. For example, with a basic salary of AED 6,000, gratuity is 63 days × AED 200 = AED 12,600.
Do I get gratuity if I worked less than one year in the UAE?
No. You must complete at least one year of continuous service. After one year, part-years count pro rata.
When must UAE gratuity be paid?
Within 14 days of the contract ending, together with the final salary and other dues. If it is not paid, you can complain to MoHRE for free on 600590000.
Apply only through the official source.
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