Is there a maximum limit on end-of-service gratuity in the UAE?

Yes. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, total end-of-service gratuity is capped at two years' wages. No matter how many years you have served, the gratuity payable cannot exceed the equivalent of two years of pay. In practice this cap only affects employees with very long tenure relative to their basic wage, because the standard accrual — 21 days' basic wage per year for the first five years and 30 days per year thereafter — takes a long time to reach the ceiling. The calculation still uses basic salary only, with allowances excluded and unpaid leave days not counted. There is no separate dirham ceiling set in the law beyond this two-years'-wages limit, so the cap scales with your own salary. MOHRE's official calculator applies the limit automatically. If you believe your gratuity has been wrongly capped, reduced, or calculated on the wrong wage figure, you can file a complaint with MOHRE or compare verified UAE employment lawyers on LEXAI to review the numbers.