End of service gratuity is a lump sum your employer pays when you leave a job in the UAE. It rewards the years you have worked there.
Who gets it
Workers in the private sector who have completed at least 1 year of continuous service. If you worked for less than a year, no gratuity is due.
How much you get
Gratuity is worked out from your last basic wage:
- 21 days of basic wage for each of your first 5 years
- 30 days of basic wage for each year after 5 years
- Part-years count in proportion once you have 1 full year
- Days of unpaid absence are not counted as service
The total cannot be more than 2 years of your wage.
A worked example
Basic wage AED 3,000 a month, so a daily rate of AED 100 (wage divided by 30). You work for 10 years.
| Part | Calculation | Amount |
|---|---|---|
| First 5 years | 5 × 21 days × AED 100 | AED 10,500 |
| Next 5 years | 5 × 30 days × AED 100 | AED 15,000 |
| Total | AED 25,500 |
That is below the cap of AED 72,000 (2 years of AED 3,000 a month). Try your own numbers in the UAE gratuity calculator.
What wage counts
Only your basic wage. Housing, transport and other allowances are not included. If your contract splits your pay into basic and allowances, the basic part is what matters, so check your contract.
Resigning or being terminated
Under the current federal law, resigning does not reduce your gratuity. Service before the law took effect in 2022, and dismissal for serious misconduct, may be treated differently, so check with the Ministry of Human Resources and Emiratisation. Notice periods, unpaid leave and any money you owe your employer can change what you finally receive, and your employer may deduct amounts you owe.
Things that work differently
- Free zones such as DIFC and ADGM have their own employment rules.
- Government jobs follow different rules.
- Some employers offer a voluntary savings scheme in place of gratuity. If you are in one, this calculation may not apply.
Quick checks
- Have you completed a full year?
- Use your basic wage, not your total pay.
- Take off unpaid leave days.
- Check the 2 year cap.
See how the Gulf countries compare in end of service gratuity compared.
UAE gratuity calculator Enter your wage and dates to see your gratuity.Sources
- UAE Federal Decree-Law 33 of 2021 (published on u.ae)
- UAE Government portal: Employment laws and regulations in the private sector
- UAE Government portal: Pension schemes for expatriate workers
This article is for education and is not financial, tax or legal advice. Figures are checked against the sources above and may change. Read the full disclaimer.