Is UAE gratuity calculated on my last drawn basic salary?

Yes. In the UAE, end-of-service gratuity is calculated on your last drawn basic wage — the basic salary you were earning at the time your employment ends — not an average of your past salaries. The UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, ties the benefit to your final basic salary, and then applies the standard accrual: 21 days of that basic wage for each of the first five years of service and 30 days for each year beyond five, capped at two years' wages. This means pay rises you received during your tenure work in your favour, because the whole accrued entitlement is calculated using your higher final basic wage rather than the lower salaries you earned in earlier years. Only basic salary counts — allowances are excluded — so a large package with a small basic component will produce a smaller gratuity. If your employer calculates gratuity on an outdated or reduced basic figure, that can be challenged. You can raise it with MOHRE or compare verified UAE employment lawyers on LEXAI to review the calculation.