Expats get gratuity. UAE nationals – and GCC nationals working in the UAE – get something structurally different: a funded pension through GPSSA (or ADPF in Abu Dhabi). If you are Emirati, or you employ UAE nationals, here is how the two systems compare.
Why nationals don’t get gratuity
Employers must register UAE national employees with the General Pension and Social Security Authority and pay monthly contributions instead of accruing end of service gratuity. The pension replaces gratuity for the registered – it is not paid on top. GCC nationals working in the UAE are covered through their home country’s scheme under the GCC unified protection system, with the UAE employer contributing at the home scheme’s rates.
The contribution numbers
Two regimes run in parallel. Nationals employed before 2 October 2023 remain under the older law: employee 5%, employer 12.5% in the private sector. Those who joined the workforce from 2 October 2023 fall under Federal Law No. 57 of 2023: employee 11%, employer 15% (26% total), with the government covering 2.5% of the employer share for private sector salaries under AED 20,000. Contributions are calculated on the contribution account salary, which includes basic salary plus specified allowances – a broader base than gratuity uses.
Pension vs gratuity: which is worth more?
Over a full career, the pension usually wins by a wide margin – it pays a lifelong monthly income after qualifying service rather than a one-off lump sum capped at two years of basic pay. The trade-off is liquidity: gratuity arrives as cash within 14 days of exit, while pension value unlocks at retirement age or qualifying conditions. Nationals leaving employment before pension vesting receive end of service compensation from GPSSA under its own rules rather than labour-law gratuity.
For employers of UAE nationals
Registration is mandatory and deadlines are enforced with daily penalties. Budget the employer share (12.5% or 15% depending on the employee’s regime) as a real payroll cost in place of gratuity accrual – our take-home calculator shows the employee-side deduction (salary calculator). Emiratisation hires need this wired into the offer from day one.
Information only, not legal or financial advice. Rates verified 6 July 2026 against GPSSA guidance on Federal Law No. 57 of 2023; Abu Dhabi government entities may fall under ADPF with different rates.