Gratuity for "3 Months' Salary" in the UAE
"Is gratuity three months' salary?" and "do I get gratuity after 3 months?" are two of the most common — and most misunderstood — questions UAE employees ask. This guide clears up both myths and replaces them with real, worked examples.
Last reviewed: 23 June 2026
Quick answer
UAE gratuity is not simply "three months' salary". It is calculated in days of basic wage — 21 days per year for the first five years, 30 days after — so the total depends on your basic salary and years of service. Below three years it is usually worth less than three months' basic pay. Treat this as general guidance and confirm with the calculator.
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Does 3 months of service qualify for gratuity?
No. End of service gratuity in the UAE requires at least one full year of continuous service. If you leave after three months — for any reason — you are not entitled to gratuity. You are still owed any unpaid salary for days worked, but not gratuity. For the eligibility threshold in detail, see gratuity after 1 year.
Is gratuity equal to "3 months' salary"?
Also no. Gratuity is not a fixed number of months of salary. It is calculated in days of basic wage. Because the daily wage is your basic salary divided by 30, one year of service (21 days) is actually about 0.7 of a month — not a full month. The "X months" shorthand people use is a rough approximation that often overstates the figure.
Where the "3 months" idea comes from
After several years, total gratuity can add up to the rough equivalent of a few months' basic salary — which is probably why the "3 months" phrase circulates. But it is never a flat rule, and it is based on basic salary, not your total package.
How gratuity is actually worked out
- Daily wage = monthly basic salary ÷ 30.
- First 5 years: 21 days of basic wage per year.
- After 5 years: 30 days of basic wage per year.
- Minimum 1 year of service; total capped at 2 years' basic wage.
See the full method in our step-by-step gratuity guide, and why only basic salary is used in basic vs gross salary.
Worked examples table
Real figures for different basic salaries and service lengths (all below the two-year cap):
| Basic salary | 1 year (21 days) | 3 years (63 days) | 5 years (105 days) |
|---|---|---|---|
| AED 4,000 | AED 2,800 | AED 8,400 | AED 14,000 |
| AED 6,000 | AED 4,200 | AED 12,600 | AED 21,000 |
| AED 9,000 | AED 6,300 | AED 18,900 | AED 31,500 |
| AED 12,000 | AED 8,400 | AED 25,200 | AED 42,000 |
Notice that even at 5 years, the figure is closer to 3–4 months of basic salary than "3 months" of total pay — the exact amount depends entirely on your basic salary and service length.
When is gratuity less or more than 3 months' basic pay?
A quick way to sense-check the "3 months" idea is to convert gratuity days into months of basic salary (days ÷ 30). This ratio is the same for every salary, so it shows exactly where the three-month mark falls regardless of what you earn.
| Years of service | Gratuity in days | ≈ Months of basic salary | vs 3 months' basic |
|---|---|---|---|
| 2 years | 42 days | ≈ 1.4 months | Less than 3 months |
| 3 years | 63 days | ≈ 2.1 months | Less than 3 months |
| 5 years | 105 days | ≈ 3.5 months | More than 3 months |
| 10 years | 255 days | ≈ 8.5 months | More than 3 months |
So gratuity only reaches roughly three months of basic pay at just over four years of service. In cash terms on an AED 6,000 basic salary, that is about AED 12,600 at 3 years (2.1 months), AED 21,000 at 5 years (3.5 months) and AED 51,000 at 10 years (8.5 months). Remember these are months of basic salary, not total package, and the running total is capped at two years' basic wage.
Common misconceptions
- "3 months of work earns a partial gratuity." — No; under one year means zero.
- "Gratuity is always 3 months of salary." — No; it is day-based on basic salary.
- "It uses my total/gross salary." — No; basic salary only.
- "Resigning cancels it." — No; resignation does not reduce gratuity once you pass one year (see resignation gratuity).
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Official sources & further reading
Confirm details with the UAE Government portal (u.ae) and MOHRE. On this site, see the gratuity guide, gratuity for an AED 5,000 salary, and the gratuity FAQ.