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: 23 June 2026
Quick answer
After five completed years you generally receive 105 days of basic salary — 21 days for each year, since the first five years all use the 21-day rate. On AED 10,000 basic that is about AED 35,000. Five years is a key threshold: each year beyond it earns the higher 30-day rate. This is an estimate; use the calculator for exact dates.
On this page
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.
Why 5 years is a key gratuity milestone
Five years matters because it is the boundary between the two accrual rates in the standard UAE private-sector calculation. Everything up to and including year five is earned at 21 days of basic wage per year; from year six onward each year is earned at 30 days. Passing five years therefore speeds up how quickly your gratuity grows — the extra value shows up in later years, not at the five-year mark itself. To see how those later years add up, compare with gratuity after 10 years.
Worked example
An employee with a basic salary of AED 10,000 who completes 5 years:
Example
5-year gratuity by basic salary
| Basic salary | Daily wage (÷30) | Qualifying days | Estimated gratuity |
|---|---|---|---|
| AED 3,000 | AED 100.00 | 105 days | AED 10,500 |
| AED 5,000 | AED 166.67 | 105 days | AED 17,500 |
| AED 10,000 | AED 333.33 | 105 days | AED 35,000 |
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 to estimate your exact figure for five years of service.
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 3 years, gratuity after 10 years, and the gratuity guide.