Last updated: July 17, 2026 | Educational estimate | Not legal advice
For three years of service, many employees estimate gratuity using 21 days of basic salary per year. This calculator helps turn that into a simple number.
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 3-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 3 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.
Audit middle-years settlement details
At three years, small record differences can move the estimate: joining date, last working date, unpaid leave, basic salary changes, leave-salary treatment, and deductions. Keep those inputs in writing before comparing your number with the employer's final-settlement line.
Use the final settlement calculator for a line-by-line comparison and the unpaid-leave gratuity guide if the service period or eligible days are unclear.
Quick FAQ
How is UAE gratuity commonly estimated after 3 years?
For a simple private-sector estimate, three 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 3-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 can change a 3-year gratuity estimate?
Unpaid leave, incorrect basic salary, partial-year date errors, deductions, leave-salary treatment, and contract or free-zone details can change the final settlement, so compare the estimate with written records.
Is this gratuity-after-3-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.