Last updated: July 19, 2026 | Educational estimate | Not legal advice
Five years is an important threshold because additional service after five years is commonly estimated at 30 days of basic salary per year instead of 21 days.
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 to check the general rule, then compare it with your contract and employer final-settlement breakdown. Source link checked July 19, 2026.
Check the UAE Government end-of-service benefits page
Download 5-year review checklist
Use this checklist to collect the basic salary figure, service dates, unpaid leave notes, and employer calculation before relying on a final-settlement number.
Download gratuity after 5 years checklist
When service crosses 5 years
If your last working date is close to the five-year mark, do not compare only the headline estimate. Confirm the completed-service period first, then check whether notice-period days, unpaid leave, or a final-settlement cut-off date changes the employer's calculation.
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.
Quick FAQ
How is gratuity commonly estimated after 5 years in the UAE?
A common private-sector estimate uses 21 days of basic salary for each of the first five years, then 30 days of basic salary for each additional year, subject to the legal cap, contract details, unpaid leave, and special cases.
Does the 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 check when service passes 5 years?
Check the exact completed-service dates, basic salary, unpaid leave records, notice-period treatment, and employer final-settlement breakdown before relying on the estimate.
Is this gratuity-after-5-years guide legal advice?
No. It is an educational estimate checklist. For disputes, free-zone differences, unusual contracts, or unclear final settlements, check official sources or qualified advice.