Gratuity After 10 Years in the UAE
Ten years of service blends both gratuity rates — five years at 21 days and five at 30 days — producing a substantial payout. This guide shows the ten-year figure, explains the two-year cap, and helps you plan a long-service exit.
Last reviewed: 23 June 2026
Quick answer
Ten years generally combines two bands: the first five years at 21 days each (105 days) and the next five at 30 days each (150 days) — 255 days of basic salary in total. On AED 10,000 basic that is about AED 85,000. The two-year wage cap rarely binds by ten years. This is an estimate; use the calculator for exact dates.
On this page
How much you get after 10 years
Ten completed years earn 255 days of basic wage: 105 days for the first five years (21 days each) plus 150 days for years six to ten (30 days each).
Why it isn't simply 10 × 30 days
A common assumption is that ten years means ten years at 30 days, but the standard calculation splits your service into two bands. The first five years are earned at 21 days of basic wage per year (105 days); only the years after five are earned at 30 days per year (a further 150 days over years six to ten). That is why the total is 255 days, not 300. The step-by-step guide shows the two-band method in full.
Worked example
An employee with a basic salary of AED 12,000 who completes 10 years:
Example
10-year gratuity by basic salary
| Basic salary | Daily wage (÷30) | First 5 years | Next 5 years | Total qualifying days | Estimated gratuity |
|---|---|---|---|---|---|
| AED 3,000 | AED 100.00 | 105 days | 150 days | 255 days | AED 25,500 |
| AED 5,000 | AED 166.67 | 105 days | 150 days | 255 days | AED 42,500 |
| AED 10,000 | AED 333.33 | 105 days | 150 days | 255 days | AED 85,000 |
Long-term comparison
| Service | Days counted | Gratuity (basic AED 12,000) |
|---|---|---|
| 8 years | 195 days | AED 78,000 |
| 10 years | 255 days | AED 102,000 |
| 15 years | 405 days | AED 162,000 |
| 20 years | 555 days | AED 222,000 |
The two-year cap explained
Total gratuity is capped at two years' basic wage. In days that is 24 months × 30 = 720 days of basic wage. At ten years you have accrued 255 days — well below the ceiling. For the full method, see the two-year cap explained step by step.
When does the cap actually bind?
After the first five years (105 days), each further year adds 30 days. Reaching the 720-day cap requires roughly 25+ years of service. So for most employees — including those at ten years — the cap does not reduce the figure. The calculator applies the cap automatically if you ever exceed it.
End-of-service considerations
- Long-service gratuity can be a significant sum — confirm the basic salary used is correct.
- Resignation does not reduce it; the old reduction rules are historical.
- It is paid as part of your final settlement with leave encashment and any unpaid salary.
- Keep long-term records (contracts, salary changes) to support the calculation.
Estimate your ten-year gratuity
The calculator combines both rates and applies the cap automatically, so you can estimate your exact figure in seconds.
Open the CalculatorFrequently asked questions
Official sources & further reading
Confirm details with the UAE Government portal (u.ae) and MOHRE. On this site, see gratuity after 5 years, the UAE Labour Law overview, and the gratuity guide.