Gratuity After 3 Years in the UAE

Q: What if I resign after 3 years?

Under the current standard formula, resignation does not reduce your gratuity. The historical rule that cut resignation gratuity to two-thirds for 3–5 years of service no longer applies to current standard private-sector calculations.

Q: Is the third year still at the 21-day rate?

Yes. The first five years are all calculated at 21 days of basic wage per year, so years one to three are all at the 21-day rate.

Three years is a common point to change jobs — and a frequent source of confusion because of outdated resignation rules. This guide shows the three-year gratuity figure, a resignation scenario, and answers the questions employees ask most.

Calculate Your Gratuity Resignation scenario

Last reviewed: 23 June 2026

Quick answer

Three completed years earn a full gratuity of 63 days of basic wage — 21 days per year. On AED 5,000 basic that is about AED 10,500, and the amount is the same whether you resign or are terminated. Figures here are general estimates based on basic salary, not legal advice; check your own numbers in the calculator.

How much you get after 3 years

Three completed years earn 63 days of basic wage — 21 days for each of the three years. The daily wage is your basic salary divided by 30. The figure is the same whether you are resigning vs being terminated.

3-year gratuity = (basic salary ÷ 30) × 21 × 3 = (basic ÷ 30) × 63

Worked example

An employee with a basic salary of AED 8,000 who completes 3 years:

Example

AED 8,000 basic · 3 years

Daily wage (8,000 ÷ 30)AED 266.67

3 years × 21 days63 days

Calculation266.67 × 63

AED 16,800

Estimated gratuity

Resignation scenario

Resigning at three years does not cut your gratuity

The historical "unlimited contract" rule reduced resignation gratuity to two-thirds for 3–5 years of service. That rule is outdated. Under the current standard formula, the employee above still receives the full AED 16,800 on resignation. Read more on the resignation gratuity page.

3-year gratuity by basic salary

Basic salary	Daily wage (÷30)	Qualifying days	Estimated 3-year gratuity
AED 3,000	AED 100.00	63 days	AED 6,300
AED 5,000	AED 166.67	63 days	AED 10,500
AED 8,000	AED 266.67	63 days	AED 16,800
AED 10,000	AED 333.33	63 days	AED 21,000
AED 12,000	AED 400.00	63 days	AED 25,200

Common employee questions

Does the third year jump to 30 days? No — the 30-day rate begins only after five years.
Will my company apply the old two-thirds cut? They should not for current standard calculations; query it if they do.
Are allowances included? No — basic salary only.
Does my notice period add to the figure? No — it affects timing, not the amount.

Estimate your three-year gratuity

Select "Resignation" or "Termination" — the result is the same under the current formula, so you can estimate your exact figure either way.

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Frequently asked questions

Do I get gratuity after 3 years in the UAE?

Yes. Three years is well past the one-year minimum, so you qualify for a full end-of-service gratuity as a private-sector employee on a standard contract.

Does termination change gratuity after 3 years?

Under the current standard formula the amount is the same for resignation and termination — 63 days of basic wage. Dismissal for gross misconduct is a separate exception; see the termination guide.

How much gratuity do I get after 3 years in the UAE?

Three years earns 63 days of basic wage (21 days per year). That is your basic salary ÷ 30, multiplied by 63. On AED 8,000 basic, about AED 16,800.

What if I resign after 3 years?

Resignation does not reduce your gratuity under the current standard formula. The historical rule that cut resignation gratuity to two-thirds for 3–5 years no longer applies.

Is the third year still at the 21-day rate?

Yes. The first five years are all at 21 days of basic wage per year, so years one to three are all at the 21-day rate.

Does unpaid leave reduce my three-year gratuity?

Unpaid leave is generally excluded from qualifying service, so a long unpaid period can slightly reduce the service length used in the calculation.

Official sources & further reading

Confirm details with the UAE Government portal (u.ae) and MOHRE. On this site, see gratuity after 2 years, gratuity after 5 years, and the UAE Labour Law overview.

5️⃣

Gratuity After 5 Years

Where the 30-day rate begins.

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Resignation Gratuity

Why resignation no longer cuts gratuity.

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Abu Dhabi Calculator

End of service guidance for Abu Dhabi.

Reviewed by the Gratuity Calculator UAE Editorial Team
Last reviewed 23 June 2026. Written in plain English and checked against the current UAE Labour Law gratuity formula — the 21/30-day basic-wage rule and the two-year cap. Sources: current UAE Labour Law guidance and official UAE government information. How we review content.