UAE gratuity after 5 years

The five-year mark is where UAE gratuity changes shape: the accrual rate for the years beyond five is higher than for the first five. That is why a single flat "days per year" calculation is wrong for long-serving staff.

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Why the fifth year matters

UAE end-of-service benefit is generally calculated at 21 days of basic pay for each of the first five years, and 30 days for each year after that, subject to the overall cap. A calculator that applies one rate to the whole period will understate or overstate the total depending on length of service.

What the cap does

Total gratuity is capped at two years of total remuneration. For very long service the cap, not the rate, is what determines the payout, so the number stops growing.

Use basic pay, not total salary

The calculation uses basic wage. Entering the full package including allowances is the single most common reason people get a figure that does not match HR.

How to do it

  1. Enter the basic monthly wage, not the full package
  2. Enter completed years of service
  3. Read the rule the calculator cites alongside the total

Questions

Is this the official MOHRE figure?

No. It is an estimate that applies the published rule. Your employer or MOHRE is the authority, and the final settlement can differ for reasons like unpaid leave.

Does resignation change the amount?

Under the current UAE labour law the full benefit applies after one year of service, unlike the older rules that reduced it on resignation. Check your contract and the law in force for your case.

What about the 30-day years?

Years after the fifth accrue at the higher rate, which the calculator applies separately rather than averaging.

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