UAE gratuity when service is under one year
Understand why traditional federal gratuity is generally unavailable before one completed year and which other settlement items may still be due.
Read guideSource-backed UAE employment tool
Calculate UAE gratuity using the current federal formula
Estimate traditional end-of-service gratuity for a full-time foreign employee covered by the federal private-sector framework.
Official sources reviewed: 28 July 2026Separate federal, ADGM and DIFC calculation paths
Step 1
Which rules apply to your employment?
Your employer’s legal registration matters more than the city where you work.
Government employees, domestic workers, pension-enrolled UAE/GCC nationals and unsupported free-zone cases need a different review. Not sure which path applies?
Federal gratuity formula
After one completed year, the estimate uses 21 days of the last basic wage for each of the first five years and 30 days for each additional year. An eligible partial year is calculated proportionally.
Basic salary is not total salary
Housing, transport and other allowances are not automatically part of the traditional federal gratuity basis. Enter the last basic wage shown in the contract or verified wage record.
Service dates and unpaid absence
The result uses the official employment start and contract end dates. Verified unpaid absence is excluded from the eligible service period under the federal formula.
Overall cap
Traditional federal gratuity is capped at two years' wage. The cap applies to the gratuity line, not automatically to salary, leave or other final-settlement components.
When not to use this formula
Do not automatically use the federal path for ADGM, DIFC, domestic workers, pension-enrolled UAE or GCC nationals, or an employee enrolled in an alternative end-of-service scheme.
Source-backed calculation
Calculations are tied to the selected jurisdiction and show their assumptions. They do not replace review of your contract, statement or legal advice.
Review official sourcesClear answers
Frequently asked questions
Is UAE gratuity based on basic or total salary?
Traditional federal gratuity is normally based on the last basic wage, not the full salary package.
Do I receive gratuity before one completed year?
Traditional federal gratuity generally requires one completed year of eligible service.
Does resignation reduce gratuity?
The current federal framework does not apply the old resignation reductions merely because the employee resigned, although eligibility and other facts still matter.
Are partial years included?
After one completed eligible year, an additional partial year is generally included proportionally.