| Daily basic wage (basic ÷ 30) | AED 400 |
| First 5 years: 21 days a year | 105.0 days |
| After 5 years: 30 days a year | 79.8 days |
| Gratuity | AED 73,923 |
Resigning no longer cuts your gratuity: the old one-third and two-thirds reductions ended with the 2021 Labour Law (in force since 2 February 2022).
About 1.1% of the world's adults are dollar millionaires, and together they own roughly 45% of all household wealth.
UBS Global Wealth Report 2023How UAE gratuity is calculated
Under Federal Decree-Law No. 33 of 2021, a private sector employee with at least one year of continuous service gets an end of service gratuity based on their last basic salary, not the full package:
- 21 days of basic salary for each of the first five years.
- 30 days of basic salary for each year after that.
- Part years count pro rata, as long as you have completed one full year.
- Days of unpaid leave are not counted as service.
- The total can't exceed two years of basic salary.
The daily wage is the monthly basic salary divided by 30. So someone on AED 12,000 basic earns AED 400 a day, AED 8,400 a year of gratuity for the first five years and AED 12,000 a year after.
Resigning versus being let go
The old law cut gratuity to a third or two thirds if you resigned early. The 2021 law ended that: since 2 February 2022 you get the same gratuity whether you resign or your employer ends the contract, as long as you have a year of service.
When it must be paid
Your employer must pay all end of service dues, including gratuity and unused leave, within 14 days of your last working day. If they don't, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
Who this doesn't cover
UAE nationals usually get a pension from the GPSSA or their emirate's pension fund instead. DIFC employees are in the DEWS savings scheme, and some employers have moved staff to an approved savings scheme in place of gratuity. Government employees follow their own HR law.
Questions people ask
Is gratuity based on basic or total salary?
On your last basic salary only. Housing, transport and other allowances are not included unless your contract says otherwise.
Do I get gratuity if I resign before one year?
No. Gratuity starts after one full year of continuous service. Unused annual leave is still paid.
Do I lose gratuity if I resign?
Not any more. Under the 2021 Labour Law, resigning gives the same gratuity as being let go, once you have one year of service.
Is there a maximum gratuity?
Yes. Total gratuity can't be more than two years of your basic salary.
How is unused leave paid?
Unused annual leave days are paid at your basic salary: basic ÷ 30 for each day, on top of gratuity.
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Estimates, not advice. Our calculators follow the published rules as we understand them (checked October 2026), but they are not financial, tax or legal advice. Rules change and your contract, bank or free zone may differ. Confirm with MOHRE, the Federal Tax Authority, your bank or a licensed adviser before you act. Full disclaimer