UAE End-of-Service Benefits: Full vs Partial Entitlements

End-of-service benefits in the UAE are mainly the gratuity (end-of-service benefit) under Federal Decree-Law No. 33 of 2021. This guide explains when you get full vs partial gratuity, how it differs for limited and unlimited contracts, which salary components count, and how to resolve disputes. We reference the law and MOHRE. Use our Gratuity Calculator.

Full Gratuity: When You Qualify

Full gratuity (30 days per year for each year after the first five) applies when you have completed five or more years and leave in circumstances that qualify (e.g. employer termination without cause, or resignation with proper notice where the law allows full gratuity). The total cannot exceed two years’ basic salary.

Partial Gratuity: 1–5 Years

Partial gratuity (21 days per year for the first five years) applies for service between one and five years. If you resign before one year, you may not be entitled to gratuity; if you resign early in a limited contract, gratuity may be reduced. Check the law and your contract.

Unlimited vs Limited Contract Differences

Unlimited vs limited: in an unlimited contract, resignation with notice typically gives you gratuity for years served. In a limited contract, early resignation may reduce or eliminate gratuity. If the employer terminates without cause, you are generally entitled to full gratuity plus possible compensation.

Salary Components That Count

Gratuity is calculated on basic salary only, not on allowances (unless the contract or policy says otherwise). So basic salary and length of service determine the amount. Use our Gratuity Calculator to estimate.

Dispute and MOHRE Calculation

Disputes over the calculation or non-payment can be raised with MOHRE. They may attempt conciliation; if that fails, the case can go to the labour court. Keep your contract, payslips, and termination letter. You must lodge within the time limits.

Using the Gratuity Calculator

Use our Employment Benefits Calculator to model different scenarios (basic salary, years of service, contract type) and ensure you receive what you are owed.

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