Last updated: July 17, 2026 | Educational estimate | Not legal advice
After one year of continuous service, UAE employees may become eligible for end-of-service gratuity. A common estimate is 21 days of basic salary for each completed year of service. This page helps employees check the basic idea before using the calculator or accepting an employer final-settlement number.
Quick estimate rules
- Less than 1 year of service: gratuity is commonly estimated as zero.
- 1 to 5 years: commonly estimated at 21 days of basic salary per year.
- More than 5 years: first 5 years at 21 days per year, then 30 days per extra year.
- The total gratuity is generally capped at two years of wage.
Official source check
The UAE Government private-sector end-of-service benefits page states that gratuity is calculated on basic salary and excludes allowances. Use that page as a source check, then compare it with your contract and employer final-settlement breakdown. Source link checked July 17, 2026.
Check the UAE Government end-of-service benefits page
Before accepting a 1-year settlement
Ask for the final-settlement breakdown before signing or confirming receipt. Match the service dates, basic salary, unpaid leave, deductions, and any leave-salary line against your own working file so the first-year gratuity estimate is not reviewed in isolation.
If the employer number is unclear, compare it with the final-settlement deductions checklist and keep evidence using the unpaid gratuity evidence guide.
Download 1-year review checklist
Use this checklist to record the joining date, last working date, basic salary, unpaid leave, and employer calculation before relying on a final-settlement number.
Download gratuity after 1 year checklist
Important note
This website gives a simple estimate only. UAE labour law, contract terms, unpaid leave, free-zone rules, and individual disputes can affect the final amount.
Quick FAQ
Can an employee receive gratuity after 1 year in the UAE?
For a simple private-sector estimate, gratuity may become relevant after one year of continuous service. The final result can depend on contract terms, unpaid leave, free-zone rules, and the exact employment situation.
What salary figure should be used after 1 year?
UAE Government guidance says private-sector end-of-service gratuity is calculated on basic salary and excludes allowances such as housing and transport.
What should I check before accepting a 1-year final settlement?
Compare joining date, last working date, basic salary, unpaid leave, employer deductions, and the written final-settlement breakdown before relying on the number.
Is this gratuity-after-1-year page legal advice?
No. It is an educational estimate checklist. For disputes, unusual contracts, or unclear final settlements, check official sources or qualified advice.