Gratuity After 2 Years in the UAE
Two years of service comfortably clears the one-year eligibility threshold, so you are entitled to a full gratuity. This guide shows the two-year figure, walks through a worked example, and explains how notice period and basic salary fit in.
Last reviewed: 23 June 2026
Quick answer
After two full years you qualify for a complete end-of-service gratuity worth 42 days of basic wage — 21 days for each year. Your daily wage is basic salary ÷ 30, so on AED 5,000 basic that is roughly AED 7,000. This is a general estimate based on basic salary; confirm your exact figure with the calculator or read the full gratuity guide.
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How much you get after 2 years
Two completed years earn 42 days of basic wage — 21 days for each year, since the first five years are all at the 21-day rate. The daily wage is your basic salary divided by 30.
Worked example
An employee with a basic salary of AED 7,000 who completes 2 years:
Example
2-year gratuity by basic salary
| Basic salary | Daily wage (÷30) | Qualifying days | Estimated 2-year gratuity |
|---|---|---|---|
| AED 3,000 | AED 100.00 | 42 days | AED 4,200 |
| AED 5,000 | AED 166.67 | 42 days | AED 7,000 |
| AED 7,000 | AED 233.33 | 42 days | AED 9,800 |
| AED 10,000 | AED 333.33 | 42 days | AED 14,000 |
| AED 15,000 | AED 500.00 | 42 days | AED 21,000 |
Notice period considerations
If you are resigning around the two-year mark, your notice period days still count toward your service. Plan your last working day with the notice clause in mind — see the UAE notice period guide. The notice period changes the timing of your final settlement, not the gratuity formula.
Why basic salary is used
Gratuity is calculated on basic salary only; allowances are excluded. If much of your package is allowances, your two-year gratuity will be lower than your total pay might suggest — see basic vs gross salary.
Estimate your two-year gratuity
Add your salary and service dates to estimate your exact figure instantly.
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 1 year, gratuity after 3 years, and the gratuity guide.