UAE Gratuity by Tenure: 1 Year, Under 5, and 5+ Years
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You must complete at least one year of continuous service to qualify.
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From one to five years, you earn 21 days of basic salary per year.
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Beyond five years, you earn 30 days per year for the additional years.
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Fractions of a year are paid pro-rata, and the total is capped at two years of basic pay.
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Unpaid absence is excluded from your countable service.
Quick answer: You must complete at least one year of continuous service to qualify for gratuity in the UAE. From one to five years you earn 21 days of basic salary per year, and beyond five years you earn 30 days per year for the additional years. Fractions of a year are paid pro-rata, and the total is capped at two years of basic salary.
Your years of service are the biggest lever on your gratuity, which is why this sits alongside the calculation method in our complete guide to UAE end-of-service gratuity. The examples below use a sample basic salary of 6,000 AED, which is a daily wage of 200 AED.
Less than 1 year
No statutory gratuity is payable below one year of continuous service. The one exception is death in service, where the one-year threshold is waived.
1 to 5 years
You earn 21 days of basic salary for each completed year, with extra months pro-rated. At 200 AED per day, each year adds 4,200 AED.
Exactly 5 years
All five years are paid at the 21-day rate: 5 x 21 x 200 AED = 21,000 AED. The higher 30-day rate only applies to years beyond the fifth.
More than 5 years
The first five years stay at 21 days per year, and every year after that earns 30 days. So you accrue faster once you pass the five-year mark. The full method is in how to calculate gratuity in the UAE.
Gratuity by tenure at a glance (6,000 AED basic)
| Service | Days basis | Calculation | Gratuity |
|---|---|---|---|
| 9 months | none | Below 1-year threshold | 0 AED |
| 1 year | 21 days | 1 x 21 x 200 | 4,200 AED |
| 3 years | 63 days | 3 x 21 x 200 | 12,600 AED |
| 5 years | 105 days | 5 x 21 x 200 | 21,000 AED |
| 7 years | 105 + 60 | (5x21 + 2x30) x 200 | 33,000 AED |
| 10 years | 105 + 150 | (5x21 + 5x30) x 200 | 51,000 AED |
Your tenure, your number
Enter your own start date, last day, and basic salary in the UAE gratuity calculator to see the exact figure, including pro-rated months. Remember that the amount is the same whether you resign or are terminated, as covered in resignation vs termination.
Two things that reduce your countable service
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Unpaid absence is excluded from your length of service, so long unpaid leave can shorten the tenure used in the calculation.
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The two-year cap limits very long service, because the total can never exceed two years of basic salary.
FAQ
Do I get gratuity after 1 year in the UAE?
Yes. One completed year is the minimum, and at that point you earn 21 days of basic salary.
How much is gratuity after 5 years?
Five years at 21 days each, which is 21,000 AED on a 6,000 AED basic. The 30-day rate starts only after five years.
What happens after 5 years?
The first five years stay at 21 days per year, and each additional year earns 30 days.
Sources and References
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Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 51 on end-of-service gratuity
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Cabinet Resolution No. 1 of 2022 (Executive Regulations of the Labour Law)
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Ministry of Human Resources and Emiratisation, end-of-service guidance (mohre.gov.ae)
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UAE Government portal, end-of-service gratuity (u.ae)
This article is for general information and does not constitute legal advice. End-of-service entitlements and disputes should be reviewed with a qualified professional or the Ministry of Human Resources and Emiratisation (MoHRE).