Last updated: July 17, 2026 | Educational estimate | Not legal advice
After two years, a common gratuity estimate is 21 days of basic salary for each completed year of service, subject to contract and labour-law details.
How to estimate the amount
The simple estimate starts with basic salary, not total package. Divide basic salary by 30 to estimate a daily basic wage, then multiply by eligible gratuity days.
- Less than 1 year: commonly estimated as no gratuity.
- 1 to 5 years: commonly 21 days of basic salary per year.
- Over 5 years: commonly 21 days per year for the first 5 years, then 30 days per additional year.
- Total gratuity is generally limited and special cases can change the result.
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, salary records, and employer final-settlement breakdown. Source link checked July 17, 2026.
Check the UAE Government end-of-service benefits page
Download 2-year review checklist
Use this checklist to record the service period, basic salary, unpaid leave, and employer calculation before relying on a final-settlement number.
Download gratuity after 2 years checklist
Before relying on the number
Check your employment contract, basic salary, unpaid leave, free-zone rules, final settlement details, and current UAE labour guidance. This website provides estimates only and is not legal advice.
Match the estimate to the settlement
A two-year estimate is only useful if the service period and basic salary match the employer's written final-settlement breakdown. Compare the gratuity line with leave salary, notice-period pay, unpaid leave, and deductions before signing or acknowledging the amount.
Use the final settlement calculator for a line-by-line review, then check unclear deductions against the final-settlement deductions checklist.
Quick FAQ
How is UAE gratuity commonly estimated after 2 years?
For a simple private-sector estimate, two completed years commonly fall in the 1-to-5-year band, often estimated at 21 days of basic salary per completed year, subject to contract details, unpaid leave, and special cases.
Does the 2-year estimate use basic salary or total salary?
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 compare after two years of service?
Compare your joining date, last working date, completed service period, basic salary, unpaid leave, leave-salary line, deductions, and employer final-settlement breakdown before relying on the estimate.
Is this gratuity-after-2-years page legal advice?
No. It is an educational estimate checklist. For disputes, unusual contracts, or unclear final settlements, check official sources or qualified advice.