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Gratuity for 1 year of service in the UAE
After 1 year you get 21 days of basic salary (1 × 21). On a basic salary of AED 10,000 that's AED 7,000.
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Get Savyit freeGratuity for 1 year, by basic salary
| Basic salary / month | Daily wage | Gratuity |
|---|---|---|
| AED 3,000 | AED 100.00 | AED 2,100 |
| AED 5,000 | AED 166.67 | AED 3,500 |
| AED 8,000 | AED 266.67 | AED 5,600 |
| AED 10,000 | AED 333.33 | AED 7,000 |
| AED 15,000 | AED 500.00 | AED 10,500 |
| AED 20,000 | AED 666.67 | AED 14,000 |
| AED 30,000 | AED 1,000.00 | AED 21,000 |
How UAE gratuity is calculated
- Find your daily wage: basic monthly salary ÷ 30.
- First 5 years: 21 days' wage for each year.
- After 5 years: 30 days' wage for each extra year.
- Part years count in proportion once you have one full year. Unpaid leave days don't count.
- The total can't be more than 24 months of basic salary.
Only basic salary counts. Housing, transport and other allowances are left out. Since the 2021 law, resigning no longer cuts your gratuity, and it must be paid within 14 days of your last day.
How long the payout lasts
AED 7,000 covers 23 days at AED 300 a day, or 14 days at AED 500. Between jobs, a daily number is easier to keep to than a lump sum. Plan your next salary →
Other years of service
Estimate under Federal Decree-Law No. 33 of 2021 (Article 51), for private-sector staff on the mainland and in most free zones. Not legal advice: your employer's final settlement and MOHRE decide the amount. Read the law.
Questions
Is gratuity for 1 year 21 or 30 days a year?
21 days a year: every year up to five counts at 21 days, so 1 year is 21 days of basic pay.
What if I leave at 1 years and 6 months?
Part years count in proportion, so 1.5 years on AED 10,000 basic gives AED 10,500.
Does my housing allowance count?
No. Gratuity uses basic salary only, without housing, transport or other allowances.
Do I lose gratuity if I resign?
No. Since the 2021 law you get the full amount whether you resign or are let go, once you have one year of service.
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Estimates for planning, not financial advice. Everything is calculated in your browser; nothing you type is sent anywhere. Updated 2026-10-29.