UAE · examples

How to calculate gratuity in UAE for 5 years (and other lengths)

Gratuity depends on two things: your basic salary and how long you worked. The rule is 21 days of basic pay per year for the first five years, then 30 days per year after that. Your daily wage is basic salary divided by 30.

Gratuity for 5 years

Five years earns 21 × 5 = 105 days of basic salary. On AED 10,000 basic, the daily wage is AED 333.33, so gratuity is 105 × 333.33 = about AED 35,000.

Gratuity for 3 years

21 × 3 = 63 days. On AED 10,000 basic: 63 × 333.33 = about AED 21,000.

Gratuity for 4 years

21 × 4 = 84 days. On AED 10,000 basic: 84 × 333.33 = about AED 28,000.

Advertisement

Gratuity for 10 years

The first five years give 105 days; the next five give 30 × 5 = 150 days, for 255 days total. On AED 12,000 basic (daily wage AED 400): 255 × 400 = AED 102,000. Always check the two-year cap, which limits any payout to 24 months of basic salary.

Calculate your exact amount

Enter your salary and service length in the UAE gratuity calculator for an instant figure, including partial years, or download its free Excel version.

Questions

How much gratuity for 5 years in UAE?

105 days of basic salary (21 × 5). On AED 10,000 basic that is about AED 35,000. Scale it by your own basic salary.

Does gratuity increase after 5 years?

Yes. Years beyond five earn 30 days each instead of 21, so the rate rises with longer service.

How are partial years counted?

Pro-rata. A few extra months add a proportional share of that year's 21 or 30 days.