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.

ServiceAED 5,000AED 8,000AED 10,000AED 15,000AED 20,000
1 yearAED 3,500AED 5,600AED 7,000AED 10,500AED 14,000
2 yearsAED 7,000AED 11,200AED 14,000AED 21,000AED 28,000
3 yearsAED 10,500AED 16,800AED 21,000AED 31,500AED 42,000
4 yearsAED 14,000AED 22,400AED 28,000AED 42,000AED 56,000
5 years (rate changes here)AED 17,500AED 28,000AED 35,000AED 52,500AED 70,000
6 yearsAED 22,500AED 36,000AED 45,000AED 67,500AED 90,000
7 yearsAED 27,500AED 44,000AED 55,000AED 82,500AED 110,000
8 yearsAED 32,500AED 52,000AED 65,000AED 97,500AED 130,000
10 yearsAED 42,500AED 68,000AED 85,000AED 127,500AED 170,000
12 yearsAED 52,500AED 84,000AED 105,000AED 157,500AED 210,000
15 yearsAED 67,500AED 108,000AED 135,000AED 202,500AED 270,000
20 yearsAED 92,500AED 148,000AED 185,000AED 277,500AED 370,000
Gratuity on basic monthly salary, Article 51 of Federal Decree-Law No. 33 of 2021.

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.

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