Under Article 51 of Federal Decree Law No. 33 of 2021, a full time foreign worker with at least one year of continuous service gets 21 days of basic wage for each of the first five years and 30 days for each year after, with part years in proportion. It uses the last basic wage, leaves out unpaid absence, and cannot exceed two years' wage.
What does that look like in numbers?
Work out a day of basic wage first. Article 67 says a month counts as 30 days, so a day is the monthly basic wage divided by 30. On AED 6,000 a month that is AED 200. Five years then earn 5 × 21 = 105 days, or AED 21,000, and every year after adds 30 days, or AED 6,000.
| Service | Days of basic wage | Gratuity | In rupees |
|---|---|---|---|
| 1 year | 21 days | AED 4,200.00 | PKR 316,304 |
| 3 years | 63 days | AED 12,600.00 | PKR 948,912 |
| 5 years | 105 days | AED 21,000.00 | PKR 1,581,521 |
| 8 years | 195 days | AED 39,000.00 | PKR 2,937,110 |
| 12 years | 315 days | AED 63,000.00 | PKR 4,744,562 |
| 20 years | 555 days | AED 111,000.00 | PKR 8,359,466 |
The calculator does the same for your own dates, part years included.
How are days and years counted?
By the Gregorian calendar, with a year of 365 days (Article 67). Service is counted in days and divided by 365, and a part year earns its share once one full year is complete (Article 51(3)). Days of unpaid absence are not counted (Article 51(4)). If the contract is renewed or extended, the new term is added to the original one when continuous service is counted (Article 8(4)).
Which wage is used?
The last basic wage the worker was entitled to (Article 51(5)). Article 1 defines the basic wage as the wage in the contract paid for the work, "which does not include any other allowances or benefits in kind". Housing, transport and other allowances are therefore left out. For piecework pay the law uses the average daily wage, which Article 23 takes over the six months before the claim.
Is there a limit?
Yes. Article 51(6) says the whole gratuity must not exceed two years' wage. On the basic wage alone, two years is 720 days of wage at 30 days a month, which service only reaches after about 25 and a half years: 105 days for the first five years plus 30 days for each of the next 20.5. The Decree Law defines "wage" as the basic wage plus allowances, so the limit can be higher still.
When must it be paid, and can anything be deducted?
Within 14 days of the end of the contract, together with the last wages and every other entitlement (Article 53). The employer may deduct amounts payable under the law or a judgment, following the Implementing Regulation (Article 51(7)).
Who is not covered?
UAE nationals, whose end of service benefits follow the pensions law (Article 51(1)); employees of federal and local government, the armed forces, police and security, and domestic workers (Article 3); workers in patterns other than full time, which the Implementing Regulation covers (Article 52); and anyone in an alternative scheme approved by the Cabinet (Article 51(8)). Workers who were on open ended contracts under the old 1980 law should note Article 68(3), which lets the employer calculate end of service for that contract under its terms.
Has the rule changed since 2021?
Not Article 51. The Ministry's consolidated text marks the articles changed in 2022 and 2023, and Article 51 is not among them. The official legislation portal lists three amendments to the Decree Law, the latest on 29 July 2024, and shows it as active; this site could not open the 2024 amending decree on an official source, so it relies on the portal showing no change to the gratuity rules since.
Sources
- Federal Decree Law No. 33 of 2021 and its amendments, MOHRE English text (PDF, Internet Archive copy of 2 March 2026), checked 18 October 2026
- UAE Legislation portal, Federal Decree by Law No. 33 of 2021 (Internet Archive copy of 4 October 2026), checked 18 October 2026
Last checked 18 October 2026. Rates on this page are from 8 November 2026 and are refreshed daily. If a rule here has changed, the official source wins.