01What end of service gratuity is
End of service gratuity is a payment that most expatriate employees in the private sector receive from their employer when their employment ends. It is part of the UAE labor law (Federal Decree-Law No. 33 of 2021), and the official UAE government portal points to Article 51 for foreign workers. UAE nationals are covered by pension and social security rules instead.
02Who is eligible
- Full-time workers who have completed one year or more of continuous service.
- Days of absence without pay are not counted in your period of service.
- Part-time and other work arrangements are calculated under Article 30 of Cabinet Resolution No. 1 of 2022.
03How gratuity is calculated
The commonly used method under the labor law is based on your last basic salary, not on allowances:
- 21 days of basic wage for each of the first 5 years of service
- 30 days of basic wage for each year after the fifth
- Partial years are counted in proportion
- The total can never exceed two years of wages, according to the official portal
Worked example: basic salary AED 8,000 a month and 7 years of service. The daily wage is 8,000 ÷ 30 = AED 266.67. Days owed: 5 × 21 = 105, plus 2 × 30 = 60, so 165 days. 165 × 266.67 ≈ AED 44,000.
04Gratuity calculator
Enter your last basic monthly salary and your length of service to get an estimate.
An estimate for full-time staff, based on your basic salary only (not allowances), and not counting unpaid leave days. Your employer’s final settlement and MOHRE rules decide the real figure.
05The voluntary savings scheme
Employers can choose an optional savings scheme as an alternative to the traditional gratuity system. If your employer uses it, your end of service benefit is built differently, so ask your HR team which system applies to you. Read the rest of our employment and labor law guide for contracts, notice periods and your rights at work, and our visas guide for what happens to your residence when a job ends.
FAQFrequently Asked Questions
How is end of service gratuity calculated in the UAE?
Based on your last basic salary: 21 days of wage for each of the first 5 years and 30 days for each year after that, with partial years counted in proportion. The total cannot exceed two years of wages.
Who is eligible for end of service gratuity?
Full-time workers who have completed one year or more of continuous service. Days of absence without pay are not counted.
Is gratuity calculated on basic salary or total salary?
The commonly used method uses your last basic salary, not allowances. Check your contract and the labor law, or ask MOHRE, for your exact case.
Is there a maximum gratuity amount?
Yes. According to the official UAE government portal, the total gratuity cannot exceed the wage of two years.
Do UAE nationals get end of service gratuity?
UAE nationals are covered by pension and social security legislation instead, according to the official portal.
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