Skip to main content
LEXAI

Ask a Lawyer·Labour / Employment

Labour / EmploymentAnswered

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 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

1 answers

Best answer
L
LEXAI

Editorially reviewed by LEXAI

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.
Helpful (0)

Facing something similar?

Describe your own situation below. Your details go to our team, and a verified UAE lawyer may receive them so they can contact you about it.

Pick your situation so your enquiry can reach a verified UAE lawyer who works in that area.

Your details stay private and are used only to handle your enquiry. A verified UAE lawyer may receive them so they can contact you about it. Privacy policy

Related Questions

Underlying law

Related UAE legislation

Keep reading

Related guides

Labour Employment

UAE Work Permit: Types, Eligibility, and How MOHRE Issues One (2026)

Working in the UAE without a valid MOHRE work permit is illegal for both the worker and the employer. This guide sets out the 13 permit categories, the conditions MOHRE checks, the offer-letter-to-contract sequence, the fee bands, and what cancellation does.

5 min read

Labour Employment

UAE Maximum Pension Salary: Contribution Limits and Deductions Explained

The UAE calculates pension on a capped contribution salary, not on total pay. This guide explains the floor and the ceiling, what counts toward the contribution salary, how employer and employee shares split, and why expatriate staff receive end-of-service gratuity instead of a pension.

5 min read

Labour Employment

Warning Letter UAE Labour Law: Rules, the Penalty Ladder and Your Rights

A written warning is a formal disciplinary penalty under UAE labour law, not an informal telling-off. Learn what a valid warning must contain, which sanctions an employer may impose and in what order, how many warnings can precede dismissal, and how to contest one.

5 min read

Have a legal question?

Post your question and get a free answer about UAE law. For advice on your own situation, speak to a verified lawyer.

Ask a Question
Related Questions

How is end-of-service gratuity calculated in ADGM?

1 answers

How is end-of-service calculated for DIFC employees under DEWS?

1 answers

Is my employer required to pay for my annual flight ticket in the UAE?

1 answers

Is my employer required to pay for an annual flight ticket home in the UAE?

1 answers

Is an addendum to an employment contract legally binding in the UAE?

1 answers

Need direct legal help?

Browse Lawyers
Browse Lawyers