Under Federal Decree-Law No. 33 of 2021, gratuity is paid on the basic salary once you complete at least one year of service. You earn 21 days of basic pay for each of the first five years, then 30 days of basic pay for every year after that. The daily wage is your monthly basic divided by 30.
Total gratuity is capped at two years’ total pay. Since the 2021 law unified contracts, resignation no longer reduces gratuity as it once did under the limited/unlimited distinction — that legacy logic is shown only for comparison.
Both examples assume an AED 10,000 monthly basic salary.
Basic vs gross salary. UAE gratuity is calculated on the basic salary only — housing, transport and other allowances are excluded. Check your contract or payslip for the basic figure.