UAE employees who complete at least one year of continuous service are entitled to an end-of-service gratuity when they leave. It is calculated on basic salary: 21 days' pay per year for the first five years and 30 days' pay per year after that.
| Fact | Value | Source |
|---|---|---|
| Qualifying service | 1 year minimum | Federal Decree-Law No. 33 of 2021 |
| First five years | 21 days basic pay per year | UAE Labour Law |
| After five years | 30 days basic pay per year | UAE Labour Law |
| Calculation base | Basic salary only | UAE Labour Law |
| Overall cap | 2 years total pay | UAE Labour Law |
| Final settlement deadline | 14 days | UAE Labour Law |
UAE employees who complete at least one year of continuous service are entitled to an end-of-service gratuity when they leave. It is calculated on basic salary: 21 days' pay per year for the first five years and 30 days' pay per year after that.
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), any employee who completes at least one full year of continuous service is owed an end-of-service gratuity when their employment ends.
The gratuity is based on basic salary only — not allowances. You earn 21 days of basic pay for each of the first five years of service, and 30 days of basic pay for each year beyond five years.
For partial years after the first, gratuity is paid pro-rata. The total gratuity is capped at the equivalent of two years' total pay.
An employee who resigns is entitled to the full gratuity, the same as one whose contract ends — the old rule that cut gratuity for early resignation was removed under the 2021 law.
Gratuity can be reduced or lost only in narrow cases of gross misconduct defined in the law. Employers must pay the final settlement, including gratuity, within 14 days of the employment ending.
Laws and regulations change. Always verify with the relevant authority before acting on this information.
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