Gratuity is a lump-sum benefit paid to employees at the end of their service, based on years worked and basic salary.
| Years of Service | Entitlement |
|---|---|
| Under 1 year | No gratuity |
| 1–5 years | 21 days' basic salary per year |
| Beyond 5 years | 30 days' basic salary per year (for years beyond the 5th) |
Total gratuity is capped at two years' total salary. The daily wage used in the calculation is the basic monthly salary ÷ 30.
Gratuity is calculated on basic salary only — allowances like housing, transport, and other benefits are typically excluded, unless your contract specifies otherwise.
Federal Decree-Law No. 33 of 2021 (effective February 2022) governs private sector employment. Gratuity entitlement applies to both limited and unlimited contracts, provided the employee has completed at least one year of continuous service.
Calculate your estimated gratuity.
Use the Gratuity Calculator →Specific circumstances (unpaid leave deductions, disciplinary termination, free zone-specific rules) can affect your exact entitlement. Verify with MOHRE, your free zone authority, or an HR/legal professional.