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How much gratuity will you get?

For private sector expatriates under the UAE Labour Law: 21 days' basic pay a year for five years, then 30 days a year, capped at two years' pay.

What is the rule?

  • You need one year or more of continuous service. Unpaid absence does not count.
  • 21 days of basic pay for each of the first five years, 30 days for each year after. Part years are paid in proportion.
  • One day of pay is monthly basic pay divided by 30, because the law treats a month as 30 days and a year as 365 days.
  • The total cannot be more than two years' wage. This calculator caps it at 24 months of the basic pay you enter. The law defines wage as basic pay plus allowances, so if your gratuity reaches the cap, ask MOHRE which figure applies.
  • Part-time and job-sharing workers get the full-time figure times their share of full-time hours. The regulations do not say whether the full-time figure uses your own basic pay or the full-time basic pay for your job, so ask your employer which to enter. Temporary work earns none.
  • Your employer must pay within 14 days of the contract ending, and may deduct amounts due by law or court judgment.
Worked example: gratuity on a monthly basic salary of AED 10,000, full time, no unpaid leave.
Years of serviceGratuity
1AED 7,000
3AED 21,000
5AED 35,000
7AED 55,000
10AED 85,000
20AED 185,000
30AED 240,000

Every rule, with the articles, is in the guide to end of service gratuity. Emiratis, DIFC and ADGM staff and savings scheme members have different rules.

Sources