Gratuity After 5 Years in the UAE
Five years is a milestone in the gratuity formula: it is the last year at the 21-day rate, and the point after which each additional year earns the higher 30-day rate. This guide shows the five-year figure and how to plan your end of service.
Last reviewed: 19 June 2026
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How much you get after 5 years
Five completed years earn 105 days of basic wage — 21 days for each of the five years. The daily wage is your basic salary divided by 30.
Where the 30-day rate begins
A common misconception is that hitting five years switches the whole calculation to 30 days. It does not. All five years are at 21 days; the 30-day rate applies only to years beyond five. So at exactly five years you are still entirely on the 21-day rate — the higher rate starts to add up from year six.
Worked example
An employee with a basic salary of AED 10,000 who completes 5 years:
Example
Long-service comparison
How the same AED 10,000 basic salary grows with service, showing where the 30-day rate kicks in:
| Service | Days counted | Gratuity (basic AED 10,000) |
|---|---|---|
| 5 years | 105 days (21 × 5) | AED 35,000 |
| 6 years | 135 days (105 + 30) | AED 45,000 |
| 7 years | 165 days (105 + 60) | AED 55,000 |
| 8 years | 195 days (105 + 90) | AED 65,000 |
End-of-service planning
- If you are close to five years, remember the extra value of the 30-day rate only starts in year six.
- Confirm your exact joining and last-working dates — a few days can shift a part-year.
- Keep your basic salary documented; allowances do not count.
- Factor in notice period timing for your last day — see the notice period guide.
Settlement expectations
At five years your gratuity is usually the largest line in your final settlement, which also includes unpaid salary and encashment of unused annual leave, minus lawful deductions.
Estimate your five-year gratuity
Enter your basic salary and dates for an instant figure.
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Official sources & further reading
Confirm details with the UAE Government portal (u.ae) and MOHRE. On this site, see gratuity after 3 years, gratuity after 10 years, and the gratuity guide.