How is gratuity calculated for a limited (fixed-term) contract in the UAE?

Since the UAE Labour Law (Federal Decree-Law No. 33 of 2021) made all private-sector contracts fixed-term, the gratuity calculation is the same for everyone and does not depend on contract type. Administered by MOHRE, the rule requires at least one continuous year of service to qualify. The benefit is 21 days' basic wage for each of the first five years of service and 30 days' basic wage for each subsequent year, calculated on your basic salary only — allowances are excluded. The total cannot exceed two years' wages, and unpaid leave days do not count toward your service period. Under the previous law, fixed-term (limited) and unlimited contracts were treated differently on early exit, but that split has been removed; whether you resign or are terminated, you now receive the full gratuity once you pass one year. Non-renewal of a fixed-term contract at its natural end does not reduce gratuity either. MOHRE provides an official calculator that applies these rules. For a complex situation, you can compare verified UAE employment lawyers on LEXAI.