Every private-sector employee with at least one year of continuous service is entitled to end-of-service gratuity under Federal Decree-Law 33/2021, based on basic salary.
The formula
- 21 days' basic pay per year for the first 5 years
- 30 days' basic pay per year beyond 5 years
- Capped at 2 years' basic salary total
- Payable within 14 days of last working day
Worked example
Employee basic AED 8,000, 7 years of service. Daily basic = 8000/30 = 266.67. First 5 years: 5 × 21 × 266.67 = AED 28,000. Next 2 years: 2 × 30 × 266.67 = AED 16,000. Total gratuity = AED 44,000.
Deductions and disputes
Unpaid loans and salary advances may be deducted with employee consent. Disputes go to MoHRE first, then Labour Court.
Automate gratuity accruals with monthly payroll — from AED 25/employee
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Frequently asked questions
Quick answers to common UAE compliance questions.
This article is for general guidance only and reflects FTA rules as of July 2026. Always confirm your specific position with a qualified UAE tax advisor.