How is UAE gratuity calculated?

UAE gratuity is calculated based on your basic salary (not total salary). For the first 5 years: 21 days of basic salary per year. For each year beyond 5 years: 30 days of basic salary per year. Maximum gratuity is capped at 2 years' total salary. For unlimited contracts, resignation before 1 year = no gratuity.

Does UAE gratuity include allowances?

No. UAE gratuity is calculated on your basic salary only, not on housing allowance, transport allowance, or any other benefits. If your total salary is AED 10,000/month with basic AED 5,000 + AED 5,000 allowances, gratuity is calculated on the AED 5,000 basic only.

What is the difference between limited and unlimited UAE contracts?

Since 2022, UAE Labour Law amendments moved most contracts to unlimited/open-ended terms. For unlimited contracts: if you resign before 1 year, no gratuity; 1–3 years: 1/3 gratuity; 3–5 years: 2/3 gratuity; 5+ years: full gratuity. If terminated without cause: full gratuity regardless of tenure.

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UAE End of Service Calculator

Gratuity · EOSB · UAE Labour Law 2024 · DIFC / ADGM

Gratuity is calculated on your basic salary only — not your housing allowance or other benefits. If your payslip shows AED 8,000 basic + AED 4,000 allowances, use AED 8,000 in the calculator.

Monthly Basic Salary (AED)

Years of Service

Reason for Leaving

Contract Type

UAE Gratuity Rules — Quick Reference

Scenario	Years	Days Rate	Multiplier
Resignation — under 1 year	Under 1 yr	21 days/yr	0% — no gratuity
Resignation — 1 to 3 years	1–3 yrs	21 days/yr	1/3 entitlement
Resignation — 3 to 5 years	3–5 yrs	21 days/yr	2/3 entitlement
Resignation — over 5 years	5+ yrs	30 days/yr (5yr+)	Full entitlement
Terminated by employer	Any	21 or 30 days/yr	Full entitlement
Mutual agreement	Any	21 or 30 days/yr	Full entitlement

📍 DIFC and ADGM employees — different rules

If you work in the Dubai International Financial Centre (DIFC) or Abu Dhabi Global Market (ADGM), you are subject to their own employment laws, not the UAE Federal Labour Law. DIFC moved to an optional DEWS (DIFC Employee Workplace Savings) scheme in 2020. Check with your HR department or DIFC Authority directly.

كيف تحسب مكافأة نهاية الخدمة في الإمارات؟

تُحسب مكافأة نهاية الخدمة على أساس الراتب الأساسي فقط (لا يشمل بدل السكن أو بدل النقل). للسنوات الخمس الأولى: 21 يوم عمل عن كل سنة. لما يزيد عن خمس سنوات: 30 يوم عمل عن كل سنة. الحد الأقصى للمكافأة: لا يتجاوز أجر سنتين كاملتين.