Gratuity After 10 Years in the UAE

Q: How do the 21-day and 30-day rates combine over 10 years?

The first five years are paid at 21 days of basic wage per year (105 days), and years six to ten are paid at 30 days per year (150 days), for a total of 255 days.

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.

Calculate Your Gratuity The two-year cap

Last reviewed: 19 June 2026

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).

10-year gratuity = (basic ÷ 30) × [ (21 × 5) + (30 × 5) ] = (basic ÷ 30) × 255

Worked example

An employee with a basic salary of AED 12,000 who completes 10 years:

Example

AED 12,000 basic · 10 years

Daily wage (12,000 ÷ 30)AED 400

First 5 years × 21 days105 days

Years 6–10 × 30 days150 days

Calculation400 × 255

AED 102,000

Estimated gratuity

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.

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.

Open the Calculator

Frequently asked questions

How much gratuity do I get after 10 years in the UAE?

Ten years earns 255 days of basic wage: 105 days for the first five years plus 150 days for the next five years. On AED 12,000 basic, about AED 102,000.

Does the two-year cap apply at 10 years?

Usually no. The cap limits total gratuity to two years' basic wage (720 days). At ten years you have 255 days, well below it. The cap typically only binds after roughly 25 years or more.

How do the 21-day and 30-day rates combine over 10 years?

The first five years are paid at 21 days per year (105 days), and years six to ten at 30 days per year (150 days), for a total of 255 days.

Is ten-year gratuity reduced if I resign?

No. Under the current standard formula, resignation does not reduce your gratuity at any length of service beyond the one-year minimum.

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.

5️⃣