UAE gratuity: start with your employment regime
Before calculating an amount, establish which employment law and end-of-service scheme applies to you.
By CashOrbits · Published 3 November 2026 · Reviewed 3 November 2026
Check scope before using a formula
This guide covers the traditional federal private-sector gratuity for eligible full-time foreign workers. DIFC, ADGM, government employment, domestic work, pension coverage and alternative savings schemes require separate rules. Do not use this formula for those arrangements.
Use basic wage and eligible service
Under Article 51 of Federal Decree-Law No. 33 of 2021, the traditional calculation requires at least one year of continuous service. Use the last basic wage and exclude unpaid absence from eligible service. Confirm dates and excluded periods with HR rather than rounding service up.
Understand the tiers
For eligible workers, the first five years use 21 days of basic wage per year and later years use 30 days per year, with qualifying part years proportionate. The total is capped at two years of wage. With a basic monthly wage of 6,000 and exactly five eligible years, the model gives 6,000 ÷ 30 × 21 × 5 = 21,000.
Treat the result as one component
Gratuity is separate from unpaid salary, confirmed leave payout and any notice compensation. Contractual enhancements or disputes require individual review. Keep your contract, payslips and service records, and confirm your scheme with HR or the competent authority.
Sources & further reading
UAE legislation: Federal Decree-Law No. 33 of 2021. The worked examples are CashOrbits illustrations, not market quotes. Source reviewed 3 November 2026.
Use this as general education. Your contract, jurisdiction and circumstances may require additional advice. Read our editorial policy.