Gratuity After 1 Year in the UAE
One year of service is the threshold that unlocks end of service gratuity in the UAE. This guide explains what you get at exactly twelve months, why nothing is payable before then, and shows the figures across common basic salaries.
Last reviewed: 19 June 2026
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Is gratuity payable before one year?
No. End of service gratuity requires at least one full year of continuous service. If you leave at, say, ten or eleven months — whether you resign or are terminated — no gratuity is due. The one-year threshold is the single most important eligibility rule.
What happens at exactly one year
The moment you complete twelve months, you become eligible for 21 days of basic wage. The first five years of service are all calculated at this 21-day rate; the higher 30-day rate only starts after five years.
Worked example
An employee with a basic salary of AED 5,000 who completes exactly 1 year:
Example
Gratuity at 1 year by basic salary
| Basic salary | Daily wage | 1-year gratuity (21 days) |
|---|---|---|
| AED 4,000 | AED 133.33 | AED 2,800 |
| AED 6,000 | AED 200.00 | AED 4,200 |
| AED 8,000 | AED 266.67 | AED 5,600 |
| AED 10,000 | AED 333.33 | AED 7,000 |
Common misconceptions
- "I get a partial gratuity at 9 months." — No; nothing is payable before one full year.
- "Resigning at one year cancels my gratuity." — No; resignation does not reduce it under the current formula.
- "My first year counts at 30 days." — No; the first five years are at 21 days each.
- "Gratuity uses my total salary." — No; it uses basic salary only.
Check your one-year figure
Enter your basic salary and dates for an instant estimate.
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Official sources & further reading
Confirm details with the UAE Government portal (u.ae) and MOHRE. On this site, see the gratuity guide, the UAE Labour Law overview, and gratuity after 2 years.