End-of-service gratuity after 1 year in the UAE (basic wage AED 10,000)
After 1 year of service on a basic wage of AED 10,000 a month, the end-of-service gratuity for a full-time foreign worker in the UAE private sector is AED 7,000. That is 21 days of basic wage at AED 333.33 a day, or 0.7 months of basic wage.
1 year is the first length of service that earns a gratuity. One day less (364 days) gives AED 0, because Article 51(2) needs a year or more of continuous service. At the first year the gratuity is 21 days of wage.
One more year of service (2 years) would add AED 7,000 to the gratuity on a basic wage of AED 10,000, taking it to AED 14,000. A year at the 21 day rate is 0.7 months of basic wage.
The cap of 2 years of basic wage (AED 240,000 on AED 10,000) is not reached: this gratuity is 2.92% of it. The cap is reached after 25.5 years of service.
Work out your own gratuityThe working
| Step | Value |
|---|---|
| Basic wage per month | AED 10,000 |
| Day's wage (basic ÷ 30) | AED 333.33 |
| Service | 1 year (365 days) |
| Days of wage | 21 days |
| Gratuity | AED 7,000.00 |
Full-time foreign worker, mainland private sector, no unpaid absence, a 365-day year. UAE nationals are under the pension legislation (Article 51(1)). Staff of free zones such as DIFC and ADGM follow their own rules.
The same 1 year on other basic wages
| Basic wage per month | Day's wage (basic ÷ 30) | Gratuity after 1 year | In months of basic wage |
|---|---|---|---|
| AED 5,000 | AED 166.67 | AED 3,500 | 0.7 months |
| AED 8,000 | AED 266.67 | AED 5,600 | 0.7 months |
| AED 10,000 (example) | AED 333.33 | AED 7,000 | 0.7 months |
| AED 12,000 | AED 400.00 | AED 8,400 | 0.7 months |
| AED 15,000 | AED 500.00 | AED 10,500 | 0.7 months |
| AED 20,000 | AED 666.67 | AED 14,000 | 0.7 months |
| AED 25,000 | AED 833.33 | AED 17,500 | 0.7 months |
| AED 30,000 | AED 1,000.00 | AED 21,000 | 0.7 months |
| AED 40,000 | AED 1,333.33 | AED 28,000 | 0.7 months |
| AED 50,000 | AED 1,666.67 | AED 35,000 | 0.7 months |
Common questions
How much gratuity is due after 1 year in the UAE?
On a basic wage of AED 10,000 a month, a full-time foreign worker in the private sector gets AED 7,000 after 1 year of continuous service: 21 days of basic wage at AED 333.33 a day.
Is the gratuity worked out on the whole salary?
No. Article 51 uses the basic wage. Allowances such as housing and transport are not part of it, so use the basic wage on your contract.
Does the gratuity change if I resign?
Article 51 gives one scale and does not mention the reason the contract ends. See the guide on resignation and termination.
Other lengths of service
Gratuity by years of service, 1 to 25 years · Gratuity calculator · Resignation or termination
Sources
- UAE Government portal: Federal Decree-Law No. 33 of 2021 (English text, Article 51)
- UAE Government portal: End of service benefits for workers in the private sector
- Every rule used, with its source and check date: Sources and rates
This page shows figures calculated from Article 51 of Federal Decree-Law No. 33 of 2021, as listed on the Sources page. It is general information only. Your contract, your payroll and your personal situation may differ. Rules as at 2 November 2026.