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UAE gratuity: everything you need to know

Your end-of-service benefit is one of the most valuable financial assets you build in the UAE — yet most expats don't understand exactly how it's calculated, when they can claim it, and what to do with it when they leave. All our guides are below.

21
Days' salary per year (first 5 yrs)
30
Days' salary per year (after 5 yrs)
6+
In-depth guides + free calculator
🧮
Free UAE Gratuity Calculator
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Start here: how gratuity works

UAE gratuity guide
Gratuity Guide
Gratuity · 12 min read · 📅 June 2026

UAE gratuity: how it works — the complete guide

Full legal framework: who qualifies, what basic salary means, the 1-year minimum, and contract types under the 2021 Labour Law.

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How to calculate UAE gratuity
Calculator Guide
Gratuity · 10 min read · 📅 June 2026

How to calculate UAE gratuity: step-by-step with examples

21 days for years 1–5, 30 days after 5 years — worked examples at different salary levels, including the common basic-vs-total salary mistake.

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Specific situations

Gratuity resignation vs termination
Gratuity Guide
Gratuity · 9 min read · 📅 June 2026

Gratuity: resignation vs termination — does it matter?

The 2021 Labour Law abolished reduced gratuity for resigned employees in years 1–5. What the new rules say and what counts as gross misconduct.

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UAE DEWS explained
DEWS Guide
Gratuity · 10 min read · 📅 June 2026

UAE DEWS explained: the alternative to traditional gratuity

DIFC Employee Workplace Savings replaces lump-sum gratuity with monthly invested contributions — who is covered, how it works, and whether it's better.

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What to do with your payout

What to do with UAE gratuity payout
Investing Guide
Gratuity · 12 min read · 📅 June 2026

What to do with your UAE gratuity payout

Investment frameworks for deploying gratuity based on your life stage, risk appetite, and whether you're staying in the Gulf or returning home.

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Quick reference: gratuity formula

Service period Daily rate Per year (approx) Applies to resignation?
Under 1 year — No entitlement —
Year 1–5 21 days / year ~5.83% of annual basic ✅ Yes (full, since 2022)
Year 5+ 30 days / year ~8.33% of annual basic ✅ Yes (full)

Calculated on basic salary only, not total package. Maximum gratuity is capped at 2 years' total basic salary. Full calculation guide →