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End-of-service pay under Article 51 — 21 days, 30 days, and the two-year cap, calculated properly on basic salary.
Estimate only. Calculated under Article 51 of Federal Decree-Law 33 of 2021. Since 2 February 2022 resignation after one year attracts the full entitlement. Government fees and rules change, and individual cases are assessed on their own facts. Figures verified August 2026. Send us your documents for an exact position before acting.
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 |
| Maximum | Total cannot exceed two years’ basic wage |
| Resignation | Since 2 February 2022, full entitlement after one year — same as termination |
This is where almost every disagreement starts. Gratuity is calculated on your last basic wage only. Excluded from the calculation:
Someone on AED 20,000 total with AED 8,000 basic accrues gratuity on AED 8,000. That is lawful, and it is why the split between basic and allowances on your contract matters far more than most people realise when they sign it.
Under the old law, resigning reduced your gratuity on a sliding scale — as little as a third if you left between one and three years. That was abolished. Since 2 February 2022, resigning after one year attracts the same 21 days per year as being terminated.
If someone tells you your gratuity is reduced because you resigned, they are quoting a rule that no longer exists.
Come to the conversation with a number, not a grievance. Calculate it, check it against your contract's basic salary line, and put it in writing.
If it is not paid, a MOHRE complaint is free to file and does not require a lawyer. The WPS record and your registered contract are usually enough to establish the position — we cover the full sequence in what to do when your salary is not paid.
Final settlement documents are sometimes presented for signature before payment clears. Sign only what reflects what you have actually been paid.
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. The total is capped at two years' basic wage.
No. Since 2 February 2022 the graduated reduction for resignation was abolished. After one year of service you receive the full entitlement whether you resign or are terminated.
Basic salary only, as stated in your employment contract. Housing, transport, utilities, bonuses, commissions, overtime and benefits in kind are all excluded.
No. Gratuity requires at least one year of continuous service. Below that threshold none is payable, though other end-of-service entitlements such as unused leave may still apply.
Yes. Total gratuity cannot exceed two years' basic wage regardless of how long you have served, which typically bites at around 22 to 23 years of service.
Only in limited circumstances, principally dismissal for specified serious misconduct. Otherwise gratuity is a statutory entitlement, and a MOHRE complaint is free to file if it is withheld.
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