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Since the UAE Labour Law (Federal Decree-Law No. 33 of 2021) made all private-sector contracts fixed-term, the gratuity calculation is the same for everyone and does not depend on contract type. Administered by MOHRE, the rule requires at least one continuous year of service to qualify. The benefit is 21 days' basic wage for each of the first five years of service and 30 days' basic wage for each subsequent year, calculated on your basic salary only — allowances are excluded. The total cannot exceed two years' wages, and unpaid leave days do not count toward your service period. Under the previous law, fixed-term (limited) and unlimited contracts were treated differently on early exit, but that split has been removed; whether you resign or are terminated, you now receive the full gratuity once you pass one year. Non-renewal of a fixed-term contract at its natural end does not reduce gratuity either. MOHRE provides an official calculator that applies these rules. For a complex situation, you can compare verified UAE employment lawyers on LEXAI.

No. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, you must complete at least one full year of continuous service to be entitled to end-of-service gratuity. If you leave — by resignation or termination — before reaching one year, no gratuity is payable for that incomplete period. Once you pass the one-year mark, gratuity begins to accrue and partial years beyond the first full year are pro-rated. It is worth distinguishing gratuity from your other final-settlement entitlements: even if you have not earned gratuity, you should still be paid any outstanding basic wage, accrued-but-untaken annual leave, and other dues owed up to your last working day. Time spent on probation generally counts toward your continuous service once you are confirmed, so the clock does not necessarily restart after probation. If your employer withholds dues you are owed, you can file a complaint with MOHRE. For a borderline case near the one-year mark, you can compare verified UAE employment lawyers on LEXAI to confirm what you are owed.

In the UAE, once you have completed your first full qualifying year, additional partial years are pro-rated. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), enforced by MOHRE, gratuity accrues at 21 days' basic wage per year for the first five years and 30 days per year afterward. For a fraction of a year, you take the relevant daily entitlement and apply it proportionally to the months and days worked. For example, for service in the first-five-years band, you can calculate the full-year amount (21 days' basic wage) and then take the portion corresponding to the extra months — so half a year would attract roughly half of that year's entitlement. The exact day count is based on your actual completed service, and unpaid leave days are excluded from that total. Because the precise pro-rating depends on your exact start and end dates and basic wage, MOHRE's official online calculator is the most reliable way to get the figure. If your employer rounds down unfairly or ignores partial-year service, you can challenge it with MOHRE or compare verified UAE employment lawyers on LEXAI.

A final settlement in the UAE is broader than gratuity alone. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, your end-of-service settlement should typically include: any unpaid basic salary and allowances up to your last working day; payment for accrued but untaken annual leave; your end-of-service gratuity (if you completed at least one year); any payment in lieu of notice where applicable; and reimbursement of any amounts the employer owes you under the contract. Gratuity itself is calculated on basic wage at 21 days per year for the first five years and 30 days per year thereafter, capped at two years' wages. Lawful deductions — such as amounts you genuinely owe the employer — may be applied, but arbitrary deductions are not allowed. Your employer should settle these dues promptly after your employment ends; if payment is delayed or incomplete, you can file a complaint with MOHRE. To make sure nothing is missed in a complex package, you can compare verified UAE employment lawyers on LEXAI for a review of your settlement.

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.

In the UAE, your employer is required to settle your end-of-service dues, including gratuity, promptly after your employment ends rather than holding them indefinitely. The UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, requires final entitlements to be paid within a short, defined period after the contract ends; you should confirm the exact current timeframe with MOHRE or in the executive regulations, as the precise day-count is set there and should be verified rather than assumed. Your final settlement should cover unpaid wages, accrued annual leave, and gratuity (if you completed at least one year), calculated at 21 days' basic wage per year for the first five years and 30 days thereafter. If your employer fails to pay within the required period or withholds part of what you are owed, you can file a labour complaint with MOHRE, which handles wage and end-of-service disputes and can refer unresolved matters onward. For a delayed or disputed settlement, you can also compare verified UAE employment lawyers on LEXAI to help recover what you are owed.

Employees in the Abu Dhabi Global Market (ADGM) are governed by ADGM's own Employment Regulations, not the mainland UAE Labour Law, so the end-of-service rules differ. ADGM provides for an end-of-service gratuity for eligible employees based on length of service and basic wage, broadly similar in concept to the mainland approach, and the regime also allows for qualifying savings-scheme arrangements as an alternative to a lump-sum payout. Eligibility generally requires completing a minimum qualifying period of continuous service, and the benefit is calculated on basic salary rather than the full package. Because the precise accrual rates, qualifying period, and any savings-scheme contribution levels are set in the ADGM Employment Regulations and have been updated over time, you should confirm the current figures directly from ADGM rather than assuming the mainland 21/30-day formula applies. Check your ADGM employment contract for which arrangement covers you. For a dispute over your ADGM end-of-service entitlement or contributions, you can review the ADGM regulations or compare verified UAE employment lawyers on LEXAI for advice specific to the free zone.

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.

No. Housing, transport, and other allowances do not count toward your end-of-service gratuity in the UAE. The UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, calculates gratuity strictly on your basic wage, and allowances of any kind — housing, transport, utilities, telephone, or general cost-of-living supplements — are excluded from the figure. This is why two employees with the same total package can receive very different gratuities: the one with a higher basic-salary component gets more. To estimate your gratuity, find the basic-wage line in your contract and apply the formula of 21 days' basic wage per year for the first five years and 30 days per year thereafter, capped at two years' wages. Some packages are structured with a deliberately low basic salary, which reduces end-of-service liability; if you believe your basic wage was set artificially low to shrink your benefits, that can be questioned. You can raise concerns with MOHRE or compare verified UAE employment lawyers on LEXAI to review how your salary is structured.

An employer in the UAE can make only lawful, justified deductions from your gratuity or final settlement — not arbitrary ones. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, deductions are restricted to specific, legitimate categories, such as amounts you genuinely owe the employer (for example, a documented advance or loan you agreed to repay), recovery of overpaid wages, or other liabilities permitted by law. Deductions must be properly justified and generally cannot exceed limits set by the regulations. Your employer cannot simply withhold or shrink your gratuity as a penalty for resigning, for joining a competitor, or out of dissatisfaction. Your end-of-service gratuity itself is calculated on basic wage at 21 days per year for the first five years and 30 days thereafter, capped at two years' wages, before any lawful deduction. If your employer applies deductions you do not recognise or refuses to explain them, ask for an itemised breakdown, then file a complaint with MOHRE if it is not resolved. For a contested deduction, you can compare verified UAE employment lawyers on LEXAI.