How much gratuity do you get after 1 year in the UAE? After 5? After 10? Here are the exact numbers at every common service milestone, using the formula from Federal Decree-Law No. 33 of 2021. All examples use a basic salary of AED 10,000 – scale them to your own salary, or get your precise figure from the gratuity calculator.
The milestone table
Daily wage first: AED 10,000 ÷ 30 = AED 333.33. Then:
- 1 year: 21 days × 1 = AED 7,000. This is the first moment any gratuity is due – one day short of a year pays nothing
- 2 years: 21 days × 2 = AED 14,000
- 3 years: 21 days × 3 = AED 21,000
- 5 years: 21 days × 5 = AED 35,000 – the last year at the 21-day rate
- 6 years: AED 35,000 + 30 days × 1 = AED 45,000 – the 30-day rate kicks in
- 10 years: AED 35,000 + 30 days × 5 = AED 85,000
- 15 years: AED 35,000 + 30 days × 10 = AED 135,000
- 20+ years: approaches and then hits the cap of 24 months of basic pay – AED 240,000 on this salary
The year-five acceleration
Notice the jump between year 5 and year 6: AED 10,000 instead of AED 7,000. After five years, every additional year earns 30 days instead of 21 – a 43% faster accrual. If you are close to the five-year mark and weighing a move, the timing has real money attached: on this salary, each post-five year is worth a full month of basic pay.
Partial years count too
Once past one year, service is pro-rated by the day. Seven and a half years means five years at 21 days plus 2.5 years at 30 days: AED 35,000 + AED 25,000 = AED 60,000. Your last working day, not your resignation date, ends the service count – which is one reason to serve your notice properly. See what else lands in your last payment with the final settlement calculator.
Two caveats on these numbers
First, everything is calculated on basic salary – if your basic is AED 6,000 inside an AED 10,000 package, use AED 6,000. Second, unpaid leave days do not count as service (details in the unpaid leave calculator). Contracts predating February 2022 may carry legacy resignation rules for the old service period.
Information only, not legal advice. Verified 6 July 2026.