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How do I calculate gratuity after 10 years of service in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A long-serving employee with a decade at one company wants to work out their end-of-service gratuity.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
For ten years of continuous service in the UAE private sector, your gratuity combines both accrual bands. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, the first five years accrue at 21 days' basic wage each, and the remaining five years accrue at 30 days' basic wage each. To calculate: find your daily basic wage (monthly basic salary divided by 30), multiply by 21 and then by 5 for the first five years, multiply by 30 and then by 5 for the next five years, and add the two results together. The whole calculation uses basic salary only — allowances are excluded — and your last drawn basic wage is the figure used, so pay rises during your tenure benefit the full accrual. The total remains capped at two years' wages, which a ten-year employee may approach depending on the salary structure. Unpaid leave days are not counted in the service period. MOHRE's official calculator handles the two-band split for you. If your employer applies the lower rate to your post-five-year service, you can challenge it with MOHRE or compare verified UAE employment lawyers on LEXAI.
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