It is the question that catches out most UAE employees: gratuity is calculated on your basic salary, not your gross package. With allowances often making up a third or more of total pay, the gap can be significant.
Here is exactly what counts toward your gratuity.
The 2021 law bases gratuity on the basic salary. Housing, transport, mobile and other allowances are excluded, so your gratuity is built on the basic line of your contract, not the headline total.
Your basic salary is stated on your employment contract and usually itemised on your payslip. If your package is quoted as a single all-in number, ask HR for the basic-salary breakdown used for gratuity.
Employers split packages differently, and a higher basic generally means a higher gratuity. When negotiating an offer, the basic-to-allowance split is worth as much attention as the headline salary.