End-of-service gratuity after 7 years in the UAE (basic wage AED 10,000)
After 7 years 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 55,000. That is 165 days of basic wage at AED 333.33 a day, or 5.5 months of basic wage.
The first 5 years earn 105 days (5 x 21) and the 2 years after them earn 60 days (2 x 30), 165 days in all. The higher rate accounts for 36% of the days.
One more year of service (8 years) would add AED 10,000 to the gratuity on a basic wage of AED 10,000, taking it to AED 65,000. A year at the 30 day rate is 1 month of basic wage.
The cap of 2 years of basic wage (AED 240,000 on AED 10,000) is not reached: this gratuity is 22.92% 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 | 7 years (2,555 days) |
| Days of wage | 165 days |
| Gratuity | AED 55,000.00 |
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 7 years on other basic wages
| Basic wage per month | Day's wage (basic ÷ 30) | Gratuity after 7 years | In months of basic wage |
|---|---|---|---|
| AED 5,000 | AED 166.67 | AED 27,500 | 5.5 months |
| AED 8,000 | AED 266.67 | AED 44,000 | 5.5 months |
| AED 10,000 (example) | AED 333.33 | AED 55,000 | 5.5 months |
| AED 12,000 | AED 400.00 | AED 66,000 | 5.5 months |
| AED 15,000 | AED 500.00 | AED 82,500 | 5.5 months |
| AED 20,000 | AED 666.67 | AED 110,000 | 5.5 months |
| AED 25,000 | AED 833.33 | AED 137,500 | 5.5 months |
| AED 30,000 | AED 1,000.00 | AED 165,000 | 5.5 months |
| AED 40,000 | AED 1,333.33 | AED 220,000 | 5.5 months |
| AED 50,000 | AED 1,666.67 | AED 275,000 | 5.5 months |
Common questions
How much gratuity is due after 7 years in the UAE?
On a basic wage of AED 10,000 a month, a full-time foreign worker in the private sector gets AED 55,000 after 7 years of continuous service: 165 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.