Correction, 7 October 2026: This guide has been revised to remove unsupported salary-band calculations, automatic old/new-law splits and assumptions that DIFC and ADGM share the same benefits system.
These examples use AED 10,000 last monthly basic wage, standard federal full-time employment and the stated qualifying service. They exclude savings schemes, disputed continuity and deductions.
| Qualifying years | Gratuity before deductions (AED) |
|---|---|
| 0.5 | 0 |
| 1 | 7000 |
| 2 | 14000 |
| 3 | 21000 |
| 5 | 35000 |
| 6 | 45000 |
| 10 | 85000 |
Why year six changes the rate
The first five years earn 105 days of basic wage in total. Each additional year earns 30 days. Five and a half qualifying years therefore produce AED 40,000 at this wage. Do not round the daily rate early or restart the five-year band after a salary increase.
The standard federal calculation
For a foreign full-time employee under federal private-sector law, Article 51 uses the last basic wage: 21 days for each of the first five qualifying years, then 30 days for each additional year. After one year of continuous service, fractions of a year are counted proportionately. Unpaid absence is excluded from the gratuity service calculation. Housing and transport allowances are not part of the basic-wage calculation. The statutory ceiling is two years’ wage; keep the distinction between basic wage and total contractual wage clear.
Check which rules apply before using a calculator
DIFC’s DEWS or another qualifying scheme, ADGM employment regulations and the federal alternative Savings Scheme have distinct rules. Part-time work needs its contractual hours ratio; domestic, government and pension-covered employment are outside this standard calculation. Use the free-zone comparison to identify your arrangement.
Compare an itemised breakdown
Use the Final Settlement Checker for a standard federal monthly-paid case. Ask HR for the wage basis, qualifying service, unused leave, notice position, earned pay and each proposed deduction. A calculator estimate is a starting point for questions, not a decision on your legal entitlement.
Reviewed 7 October 2026. General information, not personalised legal advice. If the contract, service continuity, salary change or deduction is disputed, confirm the facts with the relevant authority or a qualified employment adviser.