Tool · Employment
End of service gratuity under Article 51: 21 days, 30 days and the two-year cap, worked out on your basic salary.
Your resultExample
Each further month of service adds about AED 350.
AED 12,600estimated gratuity for 3.00 years on AED 6,000 basic
Not included: unused annual leave, notice pay and any unpaid salary, which are owed separately.
Resigning or being terminated makes no difference after one year: the reduction for resignation ended on 2 February 2022. Gratuity guide
Check my settlement on WhatsAppFile check AED 100 (5% VAT included), credited to your fee if you go ahead.
Labour Law Articles 51 and 53 · checked 27 Sep 2026. Estimate, not legal advice; the authority's payment screen and decision are final.
| Daily basic wage (basic / 30) | AED 200 |
|---|---|
| First 3.00 years at 21 days | AED 12,600 |
| Gratuity | AED 12,600 |
Not included in this figure
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In short: UAE end of service gratuity is 21 days of basic wage for each of the first five years of service and 30 days for each year after that, with part-years counted pro rata once one full year is completed. Nothing is due under one year. It uses the last basic salary only, is capped at two years' wage and must be paid within 14 days of the contract ending (Federal Decree-Law No. 33 of 2021, Articles 51 and 53). The formula is the same in every emirate; DIFC and ADGM have their own employment laws.
End of service gratuity in the UAE is governed by Article 51 of Federal Decree-Law No. 33 of 2021. The formula is fixed, and the only real variables are your basic salary and your length of service.
| Element | Rule |
|---|---|
| Minimum service | One year of continuous service. Below that, no gratuity is payable. |
| Daily wage | Monthly basic salary ÷ 30 |
| First five years | 21 days of basic wage per year |
| Each year after five | 30 days of basic wage per year |
| Unpaid leave | Days of unpaid absence do not count as service |
| Maximum | Total cannot exceed two years’ basic wage |
| Resignation | Since 2 February 2022, full entitlement after one year, the same as termination |
All examples use a daily wage of monthly basic salary divided by 30, as the law does.
| Situation | Working | Gratuity |
|---|---|---|
| 10 months, AED 6,000 basic | Less than one year of service | AED 0 |
| 3 years, AED 6,000 basic | AED 200 a day × 21 days × 3 years = 63 days | AED 12,600 |
| 3 years 6 months, AED 6,000 basic | AED 200 × 21 × 3.5 years = 73.5 days (part-year pro rata) | AED 14,700 |
| Exactly 7 years, AED 6,000 basic | AED 200 × (21 × 5 + 30 × 2) = 165 days | AED 33,000 |
| 10 years, AED 10,000 basic | AED 333.33 × (21 × 5 + 30 × 5) = 255 days | AED 85,000 |
| Resigned after 2 years, AED 8,000 basic | AED 266.67 × 21 × 2 = 42 days (no cut for resigning) | AED 11,200 |
The two-year cap equals 720 days of basic wage. With 105 days for the first five years and 30 days a year after that, it is reached after about 25 and a half years of service.
Basic salary versus total package, lawful deductions, Dubai, Abu Dhabi and free zone rules, the 14-day payment deadline and the rest of your final settlement are covered in our end of service gratuity guide.
Daily basic wage is your monthly basic salary divided by 30. You receive 21 days of that wage for each of the first five years of service and 30 days for each year beyond five, with part-years pro rata. The total is capped at two years' basic wage.
Basic salary only, as stated in your employment contract. Housing, transport, utilities, bonuses, commissions, overtime and benefits in kind are all excluded.
No. Since 2 February 2022 the graduated reduction for resignation no longer exists. After one year of service you receive the full entitlement whether you resign or are terminated.
No. Gratuity requires at least one year of continuous service. Other end of service entitlements, such as unpaid salary and unused leave, are still owed.
Within 14 days of the end of the contract, together with unpaid salary and other entitlements (Article 53). If it is not paid, you can file a MOHRE complaint.
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