حHesab UAE

UAE End-of-Service Gratuity: How It's Worked Out on Basic Salary

21 days' basic for each of the first 5 years, then 30 days, and the same if you resign. After 10 years on AED 8,000 basic, the gratuity is AED 68,000.

By the Hesab UAE team · Updated 17 October 2026 · 4 min read

End-of-service gratuity is one of the first things UAE employees ask about before resigning or when a contract ends. The good news is that the current law is simple: it's worked out on basic salary, and you don't lose any of it by resigning once you've done a year.

The rule (Federal Decree-Law No. 33 of 2021)

  • You qualify after at least one year of continuous service.
  • 21 days of basic salary for each of the first five years.
  • 30 days for each year after that, with part years pro rata.
  • The total can't be more than two years' pay (24 months).
  • The amount is the same whether you resign or your employer ends the contract.

How much? An example on AED 8,000 basic

Years of serviceGratuity
1AED 5,600
3AED 16,800
5AED 28,000
7AED 44,000
10AED 68,000
15AED 108,000
20AED 148,000
Daily wage = basic ÷ 30. Unpaid absence days don't count.

Notice that it's basic only, not housing or transport. If your basic is low and your allowances are large, your gratuity will be smaller than many people expect.

What's added at final settlement

  1. Pay for unused annual leave days.
  2. Pay for the notice period if you didn't work it.
  3. Any unpaid salary or other dues.
UAE Gratuity CalculatorWork out your gratuity and final settlement from your start and last working day.

Sources we checked

Tools in this article

UAE Annual Leave CalculatorDays earned, days left and what they're worthSalary Increase Calculator UAEYour new salary, the % raise and your real raise

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