End-of-service gratuity in the UAE is calculated under Federal Decree-Law No. 33 of 2021: 21 days’ basic salary for each of the first five years of service, and 30 days’ basic salary for every additional year — capped at two years’ total salary. It is calculated on the basic wage, not allowances, and becomes payable when your employment ends. Below is exactly how the calculation works, a worked example, and what to do if your employer refuses to pay.
Who is entitled to end-of-service benefits?
Every private-sector employee in the UAE who completes one year of continuous service is entitled to end-of-service benefits under Law 33/2021 — whether on a limited or unlimited contract, and whether you resign or are terminated. Certain categories of workers (such as domestic workers and some free-zone staff with their own regulations) are covered by separate schemes.
The formula, step by step
- Daily basic wage = your basic monthly salary ÷ 30
- First five years: 21 days’ basic wage per year
- Every year after five: 30 days’ basic wage per year
- Cap: the total may not exceed two years’ total (basic) salary
Only the basic salary counts — housing, transport, phone and other allowances are excluded from the calculation. This is the single point contested most often.
A worked example
If you have spent 7 years with a company and your basic salary is AED 6,000:
- First 5 years: 5 × 21 = 105 days
- Remaining 2 years: 2 × 30 = 60 days
- Total: 165 days × (6,000 ÷ 30) = AED 33,000
When is gratuity paid — and can it be delayed?
Gratuity should be part of your final settlement, paid within 14 days of the end of employment. If it is not, the employer is in breach and you can act quickly — see below.
Your gratuity was not paid: what to do
- Gather your file: the employment contract, offer letter, salary certificates or bank statements, and your last payslips.
- File a labour complaint with the Ministry of Human Resources and Emiratisation (MOHRE) — via its app, website or the 80060 call centre. No resignation is needed and no fee is charged.
- If not resolved, the claim is referred to the Labour Court, where our advocates represent you.
Do not wait: UAE labour claims are subject to a one-year deadline from the date the right falls due (Article 36 of Law 33/2021). Letting a year pass can extinguish an otherwise good claim. Read more on our labour law page or book a consultation.
Frequently asked questions
Is gratuity calculated on my last salary?
It is calculated on your basic salary at the end of service (not the total package, and not an average).
Can I waive gratuity in a contract?
No. End-of-service benefits are a statutory right, and any agreement giving up rights below the minimum set by the law is void.
Do I lose gratuity if I resign early?
Your entitlement is governed by Law 33/2021, which does not make gratuity conditional on staying — but you must have completed one year of service. For your specific dates and contract, get the numbers checked before accepting any settlement figure.
Dispute over your end-of-service pay? Ali Advocates’ labour team in Dubai handles unpaid-wage, gratuity and termination claims before MOHRE and the courts. Book a consultation or see our FAQs.