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: 19 June 2026

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 salary1 year (21 days)3 years (63 days)5 years (105 days)
AED 4,000AED 2,800AED 8,400AED 14,000
AED 6,000AED 4,200AED 12,600AED 21,000
AED 9,000AED 6,300AED 18,900AED 31,500
AED 12,000AED 8,400AED 25,200AED 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.

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).

Get your real number

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Frequently asked questions

No. Gratuity requires at least one full year of continuous service. Three months does not qualify, whether you resign or are terminated.
No. Gratuity is not a fixed number of months. It is calculated in days of basic wage — 21 days per year for the first five years and 30 days afterwards, capped at two years' basic wage.
One year earns 21 days of basic wage — roughly 0.7 of a month, because the daily wage is basic salary divided by 30.
From your first completed year. Before one year there is no entitlement; from one year you accrue 21 days of basic wage per year up to five years, then 30 days per year.

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.

ℹ️This page is general information, not legal advice, and Gratuity Calculator UAE is not affiliated with MOHRE or any UAE government authority.

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