The UAE Ministry of Human Resources and Emiratisation (MOHRE) says end-of-service gratuity for foreign private-sector workers is calculated across four levels: fractions of a year, the first period, years of service and the maximum gratuity. Work out your amount with our UAE gratuity calculator.
The four levels
- First period: 21 days' basic wage for each of the first five years.
- Further years: 30 days for each additional year.
- Fractions of a year: counted pro rata, provided at least one year of continuous service is completed.
- Maximum: total gratuity may not exceed two years' wage.
Quick examples
| Basic | Service | Gratuity |
|---|---|---|
| AED 10,000 | 3 years | AED 21,000 |
| AED 10,000 | 6 years | AED 45,000 |
| AED 12,000 | 10 years | AED 102,000 |
Payment deadline
Employers must pay gratuity and any wages due within 14 days of the contract ending.
The optional savings scheme
An optional alternative lets employers invest end-of-service amounts in funds approved by the Securities and Commodities Authority, so employees' savings can grow through investment returns.
Read more in our jobs and labour law coverage.