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: 23 June 2026
Quick answer
One year is the minimum qualifying period for UAE private-sector gratuity — below twelve months nothing is payable. For a full year you generally earn 21 days of basic salary (basic ÷ 30 × 21). On AED 5,000 basic that is about AED 3,500. It is based on basic salary, not gross. This is an estimate — use the calculator for exact dates.
On this page
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 (÷30) | Qualifying days | Estimated gratuity |
|---|---|---|---|
| AED 3,000 | AED 100.00 | 21 days | AED 2,100 |
| AED 5,000 | AED 166.67 | 21 days | AED 3,500 |
| AED 10,000 | AED 333.33 | 21 days | AED 7,000 |
Exact dates, unpaid leave and part-years
The one-year figures above assume a clean twelve months of continuous service. In practice, a few details can move your estimate:
- Less than one year: service under twelve months usually does not qualify for any gratuity.
- Exactly one year or more: once you complete a full year you qualify, and part-years beyond that accrue too.
- Unpaid leave: long unpaid periods may be excluded from qualifying service, slightly reducing the total.
- Exact dates: your real joining and last-working dates decide the precise figure, so rounding to whole years can mislead.
For a date-accurate result, calculate your exact estimate rather than relying on a rounded one-year figure.
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 to estimate your exact figure.
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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.