Gratuity is a lump-sum payment you receive when leaving your job. It's based on tenure, salary, and contract type.
All full-time employees under a limited or unlimited contract are eligible after completing at least 1 year of service.
It's based on your basic salary—not total salary. Years of service and resignation/termination terms also affect the payout.
For 1–5 years: 21 days’ salary per year. After 5 years: 30 days’ salary per year (with limits).
Under a limited contract, full benefits apply if the contract ends naturally. Early resignation may reduce the amount.
Example: AED 5,000 basic salary 3 x 21 days = 63 days’ pay → ~AED 10,500 gratuity.
Unpaid leave, early resignation, or misconduct can reduce or cancel your gratuity benefits.
Gratuity is your legal right. Stay informed with UAE labor law updates to ensure you're compensated fairly.