UAE End-of-Service Gratuity: The Complete Guide (2026)

Quick answer: In the UAE, end-of-service gratuity is a statutory lump sum based on your last basic salary. You earn 21 days of basic pay for each of the first five years of service and 30 days for each year beyond five, provided you have completed at least one year. The total is capped at two years of basic pay, and it must be paid within 14 days of your last working day.

What is end-of-service gratuity in the UAE?

End-of-service gratuity (in Arabic, mukafaat nihayat al-khidma) is a mandatory payment that private-sector employers make to expatriate employees when employment ends. It functions as the UAE's main substitute for a pension for foreign workers, who are not part of the national pension system. The rules sit in Article 51 of Federal Decree-Law No. 33 of 2021, the labour law in force since 2 February 2022.

UAE and GCC nationals are not covered by this formula. They accrue pension through the General Pension and Social Security Authority (GPSSA) instead.

How is gratuity calculated?

Gratuity is based on basic salary only. Allowances such as housing and transport are excluded. The daily wage is your monthly basic salary divided by 30. You then apply 21 days per year for the first five years and 30 days per year after that. For the full method and worked examples, see our guide on how to calculate gratuity in the UAE.

Two points cause most disputes: whether the calculation uses basic or total salary, and how many years count. These are covered in is UAE gratuity calculated on basic or total salary and UAE gratuity by tenure.

Does resigning reduce your gratuity?

No. Under the current law, resignation and termination give you the same gratuity once you have completed one year. The old reductions for resignation were removed on 2 February 2022. The details, including gross misconduct and death in service, are in UAE gratuity on resignation vs termination.

If you remember the old "limited" and "unlimited" contract split, that distinction is also gone. See limited vs unlimited contract gratuity in the UAE.

Which rules apply where you work?

Your end-of-service system depends on where your employer is registered, not where you live:

Mainland and most MoHRE free zones use the traditional lump-sum gratuity.
DIFC replaced gratuity with the DEWS savings scheme in February 2020.
ADGM introduced an employee-choice savings model from 1 April 2025. Compare all three in DIFC (DEWS) vs ADGM vs mainland gratuity. For the voluntary mainland alternative, read about the UAE voluntary Savings Scheme under Cabinet Resolution 96/2023.

What if your gratuity is not paid?

Employers must settle all dues within 14 days of your last day. If they do not, you can file a free complaint with MoHRE, which can issue a binding decision for smaller claims. The full process is in the 14-day gratuity rule and what to do if you are not paid.

Estimate your gratuity

Enter your basic salary and dates in the UAE gratuity calculator. It has a mainland, DIFC, and ADGM toggle, so you see the right result for your regime.

FAQ

Who gets gratuity in the UAE?

Full-time expatriate private-sector employees who complete at least one year of continuous service. UAE and GCC nationals accrue pension through GPSSA instead.

How much gratuity will I get?

21 days of basic salary per year for the first five years and 30 days per year after that, capped at two years of basic pay.

Is gratuity paid if I resign?

Yes. Since 2 February 2022, resignation and termination are treated the same once you complete one year.

When must my employer pay it?

Within 14 days of your last working day.

Sources and References

Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 51 on end-of-service gratuity
Cabinet Resolution No. 96 of 2023 (voluntary alternative end-of-service savings scheme)
DIFC Employee Workplace Savings (DEWS) scheme (difc.com)
ADGM Employment Regulations 2024 (adgm.com)
Ministry of Human Resources and Emiratisation, end-of-service guidance (mohre.gov.ae)
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).