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

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.

1-year gratuity = (basic salary ÷ 30) × 21

Worked example

An employee with a basic salary of AED 5,000 who completes exactly 1 year:

Example

AED 5,000 basic · 1 year
Daily wage (5,000 ÷ 30)AED 166.67
1 year × 21 days21 days
Calculation166.67 × 21
AED 3,500
Estimated gratuity

Gratuity at 1 year by basic salary

Basic salaryDaily wage1-year gratuity (21 days)
AED 4,000AED 133.33AED 2,800
AED 6,000AED 200.00AED 4,200
AED 8,000AED 266.67AED 5,600
AED 10,000AED 333.33AED 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

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Frequently asked questions

No. End of service gratuity requires at least one full year of continuous service. If you leave before twelve months, no gratuity is due, whether you resign or are terminated.
At exactly one completed year you earn 21 days of basic wage — your basic salary ÷ 30, multiplied by 21. On AED 5,000 basic that is about AED 3,500.
Yes. The first five years are all calculated at 21 days of basic wage per year. The higher 30-day rate only begins after five years.
Yes. Under the current standard formula, resignation does not reduce gratuity once you have completed one year of service.

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.

ℹ️This page is general information, not legal advice, and Gratuity Calculator UAE is not affiliated with MOHRE or any UAE government authority.

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