Gratuity Calculator by Years of Service UAE 2026
UAE gratuity accrues at 21 days of basic salary per year for the first five years, then at 30 days per year. The rate change at year five catches most people out. This page shows the figure at every service length from 1 to 20 years.
How much gratuity do you get for each year of service in the UAE?
Gratuity rises with service length at two different rates. Article 51 of Federal Decree-Law No. 33 of 2021 sets 21 days per year to year five, then 30 days per year after. Every figure below uses basic monthly salary.
| Service | AED 5,000 | AED 8,000 | AED 10,000 | AED 15,000 | AED 20,000 |
|---|---|---|---|---|---|
| 1 year | AED 3,500 | AED 5,600 | AED 7,000 | AED 10,500 | AED 14,000 |
| 2 years | AED 7,000 | AED 11,200 | AED 14,000 | AED 21,000 | AED 28,000 |
| 3 years | AED 10,500 | AED 16,800 | AED 21,000 | AED 31,500 | AED 42,000 |
| 4 years | AED 14,000 | AED 22,400 | AED 28,000 | AED 42,000 | AED 56,000 |
| 5 years (rate changes here) | AED 17,500 | AED 28,000 | AED 35,000 | AED 52,500 | AED 70,000 |
| 6 years | AED 22,500 | AED 36,000 | AED 45,000 | AED 67,500 | AED 90,000 |
| 7 years | AED 27,500 | AED 44,000 | AED 55,000 | AED 82,500 | AED 110,000 |
| 8 years | AED 32,500 | AED 52,000 | AED 65,000 | AED 97,500 | AED 130,000 |
| 10 years | AED 42,500 | AED 68,000 | AED 85,000 | AED 127,500 | AED 170,000 |
| 12 years | AED 52,500 | AED 84,000 | AED 105,000 | AED 157,500 | AED 210,000 |
| 15 years | AED 67,500 | AED 108,000 | AED 135,000 | AED 202,500 | AED 270,000 |
| 20 years | AED 92,500 | AED 148,000 | AED 185,000 | AED 277,500 | AED 370,000 |
The arithmetic behind every row appears in the UAE gratuity formula guide.
Why does gratuity jump after five years?
Year six accrues at 30 days instead of 21, a 43 percent higher rate. A worker on AED 10,000 basic earns AED 7,000 for year five and AED 10,000 for year six. Staying past the five-year mark raises every subsequent year by AED 3,000 at that salary.
The earlier years keep their 21-day rate. The higher rate applies only to service beyond year five, not retroactively to the whole period.
How much gratuity for 2 years in the UAE?
Two years of service produces 42 days of basic salary. A worker on AED 10,000 basic receives AED 14,000. A worker on AED 5,000 basic receives AED 7,000. The arithmetic runs basic divided by 30, multiplied by 21, multiplied by 2.
How much gratuity for 3 years in the UAE?
Three years of service produces 63 days of basic salary. A worker on AED 8,000 basic receives AED 16,800. A worker on AED 15,000 basic receives AED 31,500.
How much gratuity for 5 years in the UAE?
Five years of service produces 105 days of basic salary. A worker on AED 10,000 basic receives AED 35,000. Year five marks the last year at the 21-day rate. Every year after accrues at 30 days.
How much gratuity for 10 years in the UAE?
Ten years of service produces 255 days of basic salary. The first five years contribute 105 days. The next five contribute 150 days. A worker on AED 12,000 basic receives AED 102,000.
When does the two-year cap start to matter?
The statutory cap bites at 25.5 years of service. Two years of wage equals 720 days of basic salary. The first five years contribute 105 days, leaving 615 days of headroom. At 30 days per year that covers 20.5 further years.
Below 25 and a half years with one employer, the cap changes nothing. Above it, gratuity stops growing at 24 months of basic salary.
How do partial years count?
Partial years accrue pro rata, not rounded down. Three years and seven months counts as 3.583 years. A worker on AED 9,000 basic with that service receives AED 22,575.
Partial years pay pro rata down to the day. The step by step calculation guide works through a full example.
Unpaid leave comes out of the service period first. Paid annual leave, sick leave within entitlement and public holidays all count as service. Unpaid leave and gratuity covers the arithmetic.
Frequently asked questions
Does one year of service qualify for gratuity?
One year of continuous service is the statutory minimum. Service below one year produces no gratuity, though unpaid salary and accrued annual leave remain payable.
Does a salary rise increase gratuity for earlier years?
The calculation uses your last basic salary across the whole service period. A raise shortly before leaving lifts every year you have already served.
Do contract renewals reset the year count?
Renewals with the same employer keep the service running. Service counts from your original start date through every renewal.
Does gratuity differ between Dubai and Abu Dhabi?
Federal law sets the same rates across all seven emirates. ADGM and DIFC operate separate regimes with their own provisions.
Is gratuity paid on basic salary or total package?
Gratuity uses basic salary alone. Housing, transport and utility allowances sit outside the calculation.
Gratuity is one line of your final payment. The full settlement calculator adds leave, notice and pending salary.
