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 service | Gratuity |
|---|---|
| 1 | AED 5,600 |
| 3 | AED 16,800 |
| 5 | AED 28,000 |
| 7 | AED 44,000 |
| 10 | AED 68,000 |
| 15 | AED 108,000 |
| 20 | AED 148,000 |
Gratuity by years of service
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
- Pay for unused annual leave days.
- Pay for the notice period if you didn't work it.
- Any unpaid salary or other dues.