Under the UAE Labour Law, gratuity is paid to private-sector employees with at least one year of continuous service. It is based on the last basic wage, not allowances: 21 days’ pay for each of the first five years and 30 days’ pay for each additional year, with part years counted pro rata. The total cannot exceed two years’ wages. Days of unpaid absence are not counted. A daily wage of basic ÷ 30 is used here, as most employers do. The UAE has no personal income tax on salaries.
FAQ
How much gratuity for 7 years on a basic salary of AED 10,000?
AED 55,000: AED 35,000 for the first five years plus AED 20,000 for the next two.
Sources (checked 7 Nov 2026): Federal Decree-Law No. 33 of 2021 (Art. 51), Ministry of Human Resources and Emiratisation (MOHRE).