What end of service benefit do you get if you work in ADGM?

You get a gratuity once you have worked for your ADGM employer for one year or more, whatever the reason your employment ends.¹ ADGM’s guidance says this covers employees “regardless of the reason for termination”.²

How is ADGM gratuity calculated?

• 21 days of basic wage for each of the first five years.
• 30 days of basic wage for each further year.
• Part years are paid pro rata.¹

The guidance defines basic wage as your wages excluding allowances or variable payments such as bonuses.²

For example, on a basic wage of AED 120,000 a year, the daily rate is AED 328.77. Four years of service gives 4 × 21 = 84 days, or AED 27,616.44. The figures are an example of the formula.¹

If your basic wage is less than half your total pay, ask your employer to show how it applied the 50% floor.

Can your employer offer a savings scheme instead?

Yes. Your employer may offer you, in writing, the option of a pension or savings scheme as an alternative to gratuity. You must confirm your choice in writing. If you choose the scheme, you are not entitled to gratuity unless your employer agrees otherwise.¹

Before you sign, ask your employer how much it will pay into the scheme each month, who runs it, and what the fees are.

The federal end of service savings scheme leaves financial free zones to set their own rules for entities under them.³

What if you are an Emirati or GCC national?

Your employer must register you with the relevant UAE pension authority within 30 calendar days of your first day. A GCC national is registered with the federal authority, such as the General Pension and Social Security Authority (GPSSA). You do not get gratuity unless the pension authority has approved in writing that you do not take part in the pension scheme, and you give a copy to your employer by your 30th day.²

ADGM’s Registration Authority issued Circular No. 1 of 2024, effective 19 February 2024, on this duty.² See GCC nationals working in the UAE.

Do you get a flight home?

Usually. Within 30 calendar days of your termination date your employer must give you a one-way flight to your country of origin or another country you agree. It can book the flight or refund your cost. You do not get the flight if you were dismissed for cause, if you find another job or visa sponsor in the UAE within 30 days of your work permit being cancelled, or if you are a remote employee who neither lives nor works in the UAE.²

Check your contract for the basic wage figure and whether you have signed a savings scheme election.

The small print

• Sections. Gratuity and the savings scheme option are Section 61(1) to (6) of the ADGM Employment Regulations 2024, consolidated to 28 October 2025. Pension for UAE and GCC nationals is Section 60. The repatriation flight is Section 62.¹²
• No cap stated. Section 61 as published does not state a maximum gratuity.¹
• Guidance. The Employment Affairs Office guidance of 18 February 2025 is issued under Section 71(2) of the Regulations.²
• Amendment. ADGM published the Employment Regulations (Amendment No. 1) 2025. The Section 61 text on this page is the current consolidated version.¹