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How is end-of-service gratuity calculated in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A private-sector employee finishing a job in the UAE wants to know the basic method for working out their end-of-service gratuity.

This answer is AI-generated by LEXAI. 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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Jun 26, 2026
In the UAE private sector, end-of-service gratuity is calculated on your basic wage (excluding allowances) under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), enforced by MOHRE. You must complete at least one continuous year of service to qualify. The standard formula gives 21 days' basic wage for each of the first five years of service, and 30 days' basic wage for each year beyond five. To work it out: divide your monthly basic wage by 30 to get a daily rate, multiply by 21 for each of the first five years, then by 30 for later years, and add any pro-rated partial year. The total gratuity is capped at two years' wages. Days of unpaid leave are not counted in the service period. Use your basic salary figure, not your gross package, or you will overstate the result. MOHRE provides an official online gratuity calculator. If your employer disputes the amount, you can file a complaint with MOHRE, and you can compare verified UAE employment lawyers on LEXAI for your situation.
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