How is UAE gratuity calculated?
On your last basic salary: 21 days per year for the first 5 years and 30 days for each additional year, prorated for partial years, capped at two years of pay.
Is gratuity based on basic or gross salary?
On the basic salary only. Housing, transport and other allowances are excluded.
What counts as basic salary?
Basic salary is the core wage stated in your contract, before housing, transport and other allowances. Only this figure is used to work out gratuity.
Does resigning reduce my gratuity?
No. Decree-Law 33/2021 abolished the old resignation reduction. With at least one continuous year of service, resignation and termination are treated the same.
Do I get gratuity if I leave during probation?
No. Gratuity requires at least one completed year of continuous service, so leaving during probation or the first year means none is due.
Is end-of-service gratuity taxable in the UAE?
There is no personal income tax in the UAE, so your gratuity is paid in full without any income-tax deduction.
How soon must my employer pay the gratuity?
Final entitlements, including gratuity, are due within 14 days of the contract ending.
Do DIFC and ADGM employees get gratuity?
DIFC operates the DEWS savings scheme instead of a traditional gratuity, so figures can differ from this estimate.