UAE End-of-Service Gratuity When You Leave (2026)
Key takeaways
- Eligibility starts at one full year of continuous service; below that, no gratuity is due.
- Accrual is 21 days’ basic pay per year for the first five years and 30 days’ basic pay per year thereafter, up to a maximum of two years’ total pay.
- Gratuity is based on your last basic salary only — housing, transport and other allowances are excluded.
- Under the 2021 law, resignation no longer reduces your gratuity, unlike the old 1980 rules.
- Final settlement — gratuity, unpaid wages, unused leave — must be paid within 14 days of the contract ending.
- In DIFC and ADGM, mandatory workplace savings schemes generally replace the traditional gratuity; check whether you are enrolled.
Who qualifies, and what the law says
Gratuity for private-sector employees is governed by Federal Decree-Law No. 33 of 2021 (the Labour Law), which came into force on 2 February 2022 and replaced the 1980 law. A worker who has completed at least one year of continuous service is entitled to an end-of-service gratuity on termination, whatever the reason for leaving. Days of unpaid absence are not counted towards the length of service used in the calculation.
Because the UAE has no personal income tax and no state pension for expatriates, this gratuity is, for most departing residents, the single most important lump sum they take with them. There is no social-security payout to draw on later, so it is worth checking the figure carefully before you sign a cancellation or clearance form. The Ministry of Human Resources and Emiratisation (MOHRE) publishes the governing rules and a summary of entitlements on its portal at mohre.gov.ae.
How the gratuity is calculated
The official method, set out by the UAE Government on its calculations for gratuity pay page, works from your basic monthly salary — the figure in your contract before allowances:
- 1 to 5 years of service: 21 days of basic salary for each year worked.
- More than 5 years: 21 days per year for the first five years, then 30 days per year for every year beyond the fifth.
- Overall cap: the total gratuity may not exceed the equivalent of two years’ full pay.
To convert a monthly basic salary into a daily rate, divide it by 30. A worker on a basic salary of AED 10,000 has a daily rate of about AED 333.33, so one year at the 21-day rate produces roughly AED 7,000. Partial years after the first are paid on a pro-rata basis. The UAE Government and reputable calculators such as The National’s gratuity calculator apply the same formula, which is a useful cross-check against whatever your employer proposes.
Resignation vs. termination — what changed in 2021
Under the old 1980 law, an employee who resigned before completing five years could lose a large slice of gratuity on a sliding scale. That distinction has gone. Under Federal Decree-Law No. 33 of 2021 and its Executive Regulations, an eligible employee receives the full accrual rate whether they resign or are terminated, provided they have completed at least one year of service. Law firms tracking the reform, including Afridi & Angell, confirm that the previous reductions for resignation no longer apply. Gratuity can still be forfeited only in the narrow cases of dismissal for gross misconduct listed in Article 44 of the law.
Deductions your employer may lawfully make
Your gratuity is a gross entitlement, but employers may set off certain sums against your final settlement. The most common are outstanding staff loans or salary advances, the cost of items issued to you that are not returned, and amounts owed under a court order or a written agreement. Any deduction must be documented. Days of unpaid leave are excluded from the service period rather than deducted from the money. If you dispute a deduction, raise it before you sign off on the settlement — see the dispute route below.
DIFC, ADGM and savings schemes instead of gratuity
If you worked in one of the financial free zones, the traditional gratuity may not apply. In the Dubai International Financial Centre (DIFC), the end-of-service gratuity was replaced from 1 February 2020 by a funded DIFC Employee Workplace Savings (DEWS) plan, into which employers contribute monthly (5.83% of basic salary for the first five years of service and 8.33% thereafter), as explained by Al Tamimi & Company. The Abu Dhabi Global Market (ADGM) operates its own mandatory workplace savings scheme on similar principles. When you leave, you withdraw your accumulated savings pot rather than a calculated gratuity. Separately, MOHRE has introduced a voluntary alternative end-of-service Savings Scheme for the wider private sector; if your employer opted in, your benefit is the invested balance, not the 21/30-day formula. Confirm which regime you are under, because the paperwork and the sum can differ substantially.
Getting paid, and what to do if you are not
All end-of-service dues must be paid within 14 days of the end of the contract. If your employer fails to pay, or you disagree with the amount, you can file a complaint with MOHRE, which offers free mediation before a case is referred to the labour courts; the process starts at mohre.gov.ae or through the MOHRE call centre. Keep copies of your contract, payslips showing your basic salary, and the final settlement statement. Because gratuity, visa cancellation and bank-account closure all happen in the same short window, it is sensible to reconcile the gratuity figure before you sign the visa-cancellation paperwork, as your leverage drops once the employment relationship formally ends.
How Flyto can help
Flyto moves households from the UAE to Europe and worldwide, door-to-door; get a quote. We coordinate packing, shipping and delivery around your notice period and final-settlement dates, so the physical move lines up with your visa cancellation and departure rather than fighting against it.
Frequently asked questions
Do I get gratuity if I resign?
Yes. Provided you have completed at least one year of continuous service, resignation gives you the full accrual rate — 21 days per year for the first five years and 30 days per year thereafter — under Federal Decree-Law No. 33 of 2021, with the pre-2022 reductions for resignation removed. Source.
Is gratuity calculated on my total salary or just basic pay?
On your last basic salary only. Housing, transport and other allowances are excluded from the calculation, per the UAE Government’s calculations for gratuity pay.
Is there a maximum gratuity?
Yes. The total end-of-service gratuity is capped at the equivalent of two years’ full pay, regardless of how long you served. Source.
How soon must my employer pay?
Within 14 days of the end of the contract, alongside any unpaid wages and payment for unused annual leave, under the UAE Labour Law administered by MOHRE.
What if I worked in the DIFC or ADGM?
You are likely in a funded savings scheme (DEWS in the DIFC from 1 February 2020, or ADGM’s equivalent) rather than the traditional gratuity, so you withdraw your accumulated pot instead. Source.
Can my employer withhold gratuity because I owe money?
It may lawfully set off documented debts such as staff loans or unreturned company property against your final settlement, but it cannot simply refuse to pay. Disputes go to MOHRE for mediation and, if needed, the labour courts.
Sources
- UAE Government (u.ae) — End of service benefits for private-sector employees
- UAE Government (u.ae) — Calculations for gratuity pay
- MOHRE — Laws and regulations (Federal Decree-Law No. 33 of 2021)
- MOHRE — Complaints and labour dispute service
- Afridi & Angell — End-of-Service Gratuity Clarified
- Al Tamimi & Company — DIFC Employee Workplace Savings (DEWS) scheme
- The National — UAE gratuity calculator