UAE Gratuity Calculation by Years of Service: Complete Table 2026
Reviewed under Federal Decree-Law No. 33 of 2021 | Last updated: July 2026
The most common question employees ask when thinking about leaving a job in the UAE is not about the formula — it is about the number. How much will I actually get after two years? After five? After a decade of work?
This guide answers that directly. Below you will find a complete reference table showing gratuity amounts for every major service milestone, calculated at four common salary levels. The formula behind every figure is the same one used by MOHRE under Article 51 of Federal Decree-Law No. 33 of 2021.
If your salary or service years fall outside the table, use our free UAE Gratuity Calculator to get your exact personalised figure.
Table of Contents
- The Formula That Drives Every Number
- The Two Rates: 21 Days and 30 Days
- Complete Gratuity Table: 1 to 25 Years of Service
- What Each Milestone Actually Means
- Worked Examples at Different Salary Levels
- The 24-Month Maximum Cap
- How Unpaid Leave Changes Your Total
- Gratuity by Year: Resignation vs Termination
- Frequently Asked Questions
The Formula That Drives Every Number
Every figure in this guide comes from the same two-step formula set out in Article 51 of UAE Labour Law. Understanding it takes two minutes and saves a lot of confusion later.
First, your basic monthly salary is divided by 30 to produce a daily wage. UAE law always uses 30 as the divisor, regardless of how many working days are in any given month.
That daily wage is then multiplied by a fixed number of days — 21 or 30, depending on your service length — and then by the number of years you have worked.
Daily Wage = Basic Monthly Salary ÷ 30
Gratuity (Years 1–5) = Daily Wage × 21 × Number of Years
Gratuity (Beyond Year 5) = Daily Wage × 30 × Additional Years
Total Gratuity = First-5-Year Amount + Beyond-5-Year Amount
Two things are critical to get right before running any calculation. First, gratuity is always based on your basic salary only — not your total package. Housing allowances, transport, food, phone, commissions, overtime, and bonuses are all excluded. Only the fixed basic salary stated in your contract is used.
Second, any days taken as unpaid leave are subtracted from your service duration before the formula is applied. A week of unpaid leave in year three reduces your effective service time and, consequently, your gratuity.
The Two Rates: 21 Days and 30 Days
UAE law rewards long service. For your first five years, you earn 21 calendar days of basic salary per year. From year six onwards, that rate increases to 30 days per year for every additional year worked.
This is not applied retroactively. If you work for 8 years, your gratuity is not recalculated at 30 days for all 8 years. The 21-day rate always applies to the first 5 years, and the 30-day rate applies only to years 6 and beyond.
Here is what that means in practice for someone earning AED 10,000 basic salary:
| Year | Rate Applied | Gratuity Earned That Year | Running Total |
|---|---|---|---|
| Year 1 | 21 days | AED 7,000 | AED 7,000 |
| Year 2 | 21 days | AED 7,000 | AED 14,000 |
| Year 3 | 21 days | AED 7,000 | AED 21,000 |
| Year 4 | 21 days | AED 7,000 | AED 28,000 |
| Year 5 | 21 days | AED 7,000 | AED 35,000 |
| Year 6 | 30 days ↑ | AED 10,000 | AED 45,000 |
| Year 7 | 30 days | AED 10,000 | AED 55,000 |
| Year 8 | 30 days | AED 10,000 | AED 65,000 |
| Year 9 | 30 days | AED 10,000 | AED 75,000 |
| Year 10 | 30 days | AED 10,000 | AED 85,000 |
Notice how the jump from year 5 to year 6 is larger — AED 10,000 added in year 6 versus AED 7,000 added in each of the preceding years. This is why staying past the five-year mark makes a meaningful difference to your final payout.
Complete Gratuity Table: 1 to 25 Years of Service
The table below shows gratuity amounts at four common basic salary levels. All figures are calculated using the standard Article 51 formula and assume no unpaid leave. Amounts are rounded to the nearest AED.
| Years of Service | AED 5,000/mo | AED 8,000/mo | AED 12,000/mo | AED 20,000/mo |
|---|---|---|---|---|
| 1 year | AED 3,500 | AED 5,600 | AED 8,400 | AED 14,000 |
| 2 years | AED 7,000 | AED 11,200 | AED 16,800 | AED 28,000 |
| 3 years | AED 10,500 | AED 16,800 | AED 25,200 | AED 42,000 |
| 4 years | AED 14,000 | AED 22,400 | AED 33,600 | AED 56,000 |
| 5 years | AED 17,500 | AED 28,000 | AED 42,000 | AED 70,000 |
| 6 years ↑ 30-day rate begins | AED 22,500 | AED 36,000 | AED 54,000 | AED 90,000 |
| 7 years | AED 27,500 | AED 44,000 | AED 66,000 | AED 110,000 |
| 8 years | AED 32,500 | AED 52,000 | AED 78,000 | AED 130,000 |
| 9 years | AED 37,500 | AED 60,000 | AED 90,000 | AED 150,000 |
| 10 years | AED 42,500 | AED 68,000 | AED 102,000 | AED 170,000 |
| 11 years | AED 47,500 | AED 76,000 | AED 114,000 | AED 190,000 |
| 12 years | AED 52,500 | AED 84,000 | AED 126,000 | AED 210,000 |
| 13 years | AED 57,500 | AED 92,000 | AED 138,000 | AED 230,000 |
| 14 years | AED 62,500 | AED 100,000 | AED 150,000 | AED 280,000 ⚠ |
| 15 years | AED 67,500 | AED 108,000 | AED 162,000 | AED 300,000 ⚠ |
| 18 years | AED 82,500 | AED 120,000 ⚠ | AED 192,000 ⚠ | AED 360,000 ⚠ |
| 20 years | AED 92,500 | AED 120,000 ⚠ capped | AED 216,000 ⚠ capped | AED 400,000 ⚠ capped |
| 25 years | AED 115,000 | AED 120,000 ⚠ capped | AED 216,000 ⚠ capped | AED 480,000 ⚠ capped |
⚠ = Calculated formula result exceeds or approaches the 24-month salary cap. The actual payout is limited to 24 × basic monthly salary. See the cap section below for details.
All figures assume no unpaid leave, full continuous service, and resignation with notice served or lawful termination. For a personalised calculation, use our free gratuity calculator.
What Each Milestone Actually Means
Less Than 1 Year — No Gratuity
Employees who leave before completing 12 months of continuous service receive zero gratuity. This applies whether you resign or are terminated. There is no partial entitlement, no pro-rata for 11 months, and no exceptions under the standard private sector law. The one-year minimum is absolute.
If you are approaching the one-year mark and considering leaving, the difference between resigning at 11 months and 12 months is the difference between nothing and a full year’s gratuity. On a salary of AED 10,000, that is AED 7,000. On AED 20,000, it is AED 14,000. Worth waiting for if you can.
1 to 5 Years — The 21-Day Rate
From year one through year five, your gratuity grows by 21 days of basic salary for each full year completed. The accumulation is linear — each additional year adds exactly the same amount to your running total.
For a practical example: an employee on AED 12,000 basic salary who completes 3 years has AED 25,200 waiting. Complete 5 years and that becomes AED 42,000 — still at the 21-day rate throughout.
An important point for employees approaching the five-year mark: completing exactly 5 years does not trigger the higher rate. The 30-day rule only activates from the start of year six. There is no bonus at the five-year mark itself — just a higher rate for everything that comes after.
Beyond 5 Years — The 30-Day Rate
From year six onwards, each additional year earns 30 days of basic salary instead of 21. That is a 43% increase in the rate of accumulation per year.
The first five years remain calculated at 21 days. The higher rate applies only to the extra years beyond five. The two portions are then added together to get the total.
For an employee on AED 8,000 basic salary who works for 8 years:
- First 5 years: (AED 8,000 ÷ 30) × 21 × 5 = AED 28,000
- Years 6, 7, 8 (3 additional years): (AED 8,000 ÷ 30) × 30 × 3 = AED 24,000
- Total gratuity: AED 28,000 + AED 24,000 = AED 52,000
Very Long Service — Approaching the Cap
After around 14 to 20 years of service, depending on your salary, the calculated gratuity can begin approaching the legal maximum of 24 months of basic salary. Once the formula produces a number higher than 24 times your monthly basic salary, the excess is cut off and you receive only the capped amount.
This is not common for most employees, but it becomes relevant for long-serving workers earning mid to high salaries. The cap section below explains this in full.
Worked Examples at Different Salary Levels
Example A — AED 6,000 Basic Salary, 7 Years
| Step | Calculation | Amount |
|---|---|---|
| Daily wage | AED 6,000 ÷ 30 | AED 200 |
| First 5 years (21-day rate) | AED 200 × 21 × 5 | AED 21,000 |
| Years 6 and 7 (30-day rate) | AED 200 × 30 × 2 | AED 12,000 |
| Total gratuity | AED 33,000 |
Example B — AED 15,000 Basic Salary, 5 Years and 6 Months
This example shows how partial years are handled. The additional 6 months beyond the fifth year is calculated proportionally.
| Step | Calculation | Amount |
|---|---|---|
| Daily wage | AED 15,000 ÷ 30 | AED 500 |
| First 5 full years (21-day rate) | AED 500 × 21 × 5 | AED 52,500 |
| 6 additional months at 30-day rate (0.5 years) | AED 500 × 30 × 0.5 | AED 7,500 |
| Total gratuity | AED 60,000 |
Example C — AED 20,000 Basic Salary, 12 Years
| Step | Calculation | Amount |
|---|---|---|
| Daily wage | AED 20,000 ÷ 30 | AED 666.67 |
| First 5 years (21-day rate) | AED 666.67 × 21 × 5 | AED 70,000 |
| Years 6–12 (7 years at 30-day rate) | AED 666.67 × 30 × 7 | AED 140,000 |
| Formula total | AED 70,000 + AED 140,000 | AED 210,000 |
| 24-month cap check | AED 20,000 × 24 = AED 480,000 | Not reached ✅ |
| Total gratuity | AED 210,000 |
The 24-Month Maximum Cap
No matter how long you have worked or how many years accumulate in the formula, UAE law places a ceiling on the total gratuity payment. Under Article 51, the maximum you can receive is 24 months of your basic salary.
For an employee on AED 5,000 basic salary, the cap is AED 120,000. For AED 10,000 basic salary, it is AED 240,000. If the formula produces a higher figure, only the capped amount is paid.
Looking at the table above, you can see that the cap begins to affect higher-salary employees after around 14 years of service. For lower-salary employees, the formula may not reach the cap even after 25 years.
Here is a quick reference showing at what service duration the cap activates at each salary level:
| Basic Monthly Salary | 24-Month Cap Amount | Cap Reached After Approx. |
|---|---|---|
| AED 5,000 | AED 120,000 | ~29 years |
| AED 8,000 | AED 192,000 | ~29 years |
| AED 12,000 | AED 288,000 | ~29 years |
| AED 20,000 | AED 480,000 | ~29 years |
The cap applies uniformly across all salary levels because the formula grows at the same proportional rate regardless of how much you earn. The key variable is service length, not salary amount.
How Unpaid Leave Changes Your Total
Every day of unpaid leave you take reduces your effective service period. When your employer calculates your gratuity, they subtract all unpaid leave days from the total working days before converting to years for the formula.
To see the real impact, consider an employee on AED 10,000 basic salary who has worked for exactly 5 years but took 60 days of unpaid leave during that time.
Their adjusted service duration is: (5 × 365) − 60 = 1,765 days, which equals 4.84 years instead of 5.
Gratuity on 4.84 years: (AED 10,000 ÷ 30) × 21 × 4.84 = AED 33,880
Gratuity on 5.00 years: (AED 10,000 ÷ 30) × 21 × 5.00 = AED 35,000
The 60 days of unpaid leave cost this employee AED 1,120 in gratuity. For longer service periods, unpaid leave has a proportionally larger effect because it not only reduces total years but can also push someone from the 30-day bracket back towards the 21-day bracket if they are near the 5-year mark.
If you believe your employer has incorrectly counted your unpaid leave days, you have the right to request your HR attendance records before signing any final settlement document.
Gratuity by Year: Does Resignation vs Termination Change the Amount?
Under the current UAE Labour Law, the answer is no — not anymore. Since February 2023, both resignation and termination follow identical gratuity formulas, provided you have served at least one year. The only exception is dismissal for gross misconduct under Article 120, which results in zero gratuity regardless of service length.
| Years of Service | Resigned (Notice Served) | Terminated (No Misconduct) | Same Amount? |
|---|---|---|---|
| Less than 1 year | Zero | Zero | ✅ Yes |
| 1 to 3 years | Full 21 days/year | Full 21 days/year | ✅ Yes |
| 3 to 5 years | Full 21 days/year | Full 21 days/year | ✅ Yes |
| More than 5 years | 21 days (1–5 yrs) + 30 days (extra yrs) | 21 days (1–5 yrs) + 30 days (extra yrs) | ✅ Yes |
| Dismissed — Article 120 misconduct | N/A | Zero gratuity | N/A |
The one scenario where the method of leaving still matters is when an employee resigns without serving the required notice period. In that case, the gratuity formula produces the same number — but the employer is entitled to deduct the salary equivalent of the unserved notice days from the final settlement. The gratuity entitlement itself remains intact; only the notice pay is recoverable.
Frequently Asked Questions
How much gratuity do I get for 1 year of service in UAE?
For one year of service, you receive 21 days of your basic monthly salary. The formula is: (Basic Salary ÷ 30) × 21. An employee on AED 5,000 basic salary receives AED 3,500. An employee on AED 10,000 receives AED 7,000. An employee on AED 20,000 receives AED 14,000. This is the minimum gratuity entitlement under UAE law and applies equally to resigned and terminated employees.
How much gratuity for 5 years in UAE?
For exactly 5 years of service, the formula is: (Basic Salary ÷ 30) × 21 × 5. At AED 5,000 basic salary, that is AED 17,500. At AED 10,000, it is AED 35,000. At AED 15,000, it is AED 52,500. At AED 20,000, it is AED 70,000. The 30-day rate does not apply to the fifth year itself — only from the sixth year onwards.
Does gratuity increase after 5 years in UAE?
Yes, significantly. From year six onwards, the rate increases from 21 days per year to 30 days per year — a 43% increase in how much gratuity accumulates for every additional year worked. The first five years always remain at 21 days. Only the years beyond five benefit from the higher rate. Completing your sixth year adds substantially more to your total than completing your fifth.
How much gratuity for 10 years of service in UAE?
For 10 years of service, the gratuity has two components. The first 5 years at 21 days per year, plus the next 5 years at 30 days per year. At AED 10,000 basic salary: AED 35,000 (first 5 years) + AED 50,000 (next 5 years) = AED 85,000 total. At AED 8,000 basic salary: AED 28,000 + AED 40,000 = AED 68,000. For other salary levels, refer to the table above.
What is the maximum gratuity I can receive in UAE?
The maximum is 24 months of your basic monthly salary, as set by Article 51 of Federal Decree-Law No. 33 of 2021. For an employee earning AED 10,000 basic salary, the cap is AED 240,000. For AED 20,000, it is AED 480,000. If the formula produces a higher amount due to very long service, the total is limited to this cap. Most employees never reach it within typical UAE career lengths.
Summary: Key Numbers to Remember
- Minimum service for any gratuity: 1 full year
- Rate for years 1 to 5: 21 days of basic salary per year
- Rate from year 6 onwards: 30 days of basic salary per year
- Maximum total gratuity: 24 months of basic salary
- Resignation and termination: same formula, same amount
- Unpaid leave: subtracted from total service years
- Gratuity base: basic salary only — allowances excluded
For your exact figure based on your actual salary, start date, end date, and any unpaid leave, use our free UAE Gratuity Calculator. It applies the full Article 51 formula automatically and produces a downloadable PDF report you can keep for your records.
Disclaimer: This article is for informational purposes and reflects Federal Decree-Law No. 33 of 2021. It does not constitute legal advice. For disputes or complex employment situations, consult a qualified UAE employment lawyer or contact MOHRE directly at mohre.gov.ae.
