How does basic salary affect my end-of-service gratuity in the UAE?

In the UAE private sector, your end-of-service gratuity is calculated on your basic salary, not your total or gross package. Under the Labour Law (Federal Decree-Law No. 33 of 2021), gratuity accrues based on your length of continuous service and is computed using the basic wage, which is why the split between basic salary and allowances has a direct financial impact when you leave. Two employees with identical total packages can receive markedly different gratuity sums if one has a much lower basic component. The exact calculation method, including how service length translates into the gratuity figure, is set out in the law and administered by MOHRE, so confirm the current formula and any conditions for your case rather than estimating. Allowances such as housing and transport are generally excluded from the gratuity base. To plan ahead, check the basic-salary figure stated in your registered MOHRE contract and your total continuous service. If your gratuity payment seems lower than expected or your basic figure was reduced during employment, you can verify the calculation with MOHRE and compare verified UAE legal professionals on LEXAI to review the amount.