Employment Law · Practical Guide
When employment ends, employees and employers should check the service period, salary basis, contract category and any applicable alternative savings arrangement before calculating final entitlements.
Legal Compass UAE · Updated 24 October 2026 · 5 minute read
Under the general UAE private sector rules for eligible expatriate full time employees, gratuity is usually linked to completed continuous service and the last basic salary. Different rules can apply to UAE nationals, part time work, domestic workers, public sector employment and employees participating in an approved alternative savings scheme.
The general private sector framework provides gratuity for eligible expatriate full time employees who complete at least one year of continuous service. Confirm the start date, end date, any unpaid absence that affects the calculation and whether a different employment arrangement applies.
The UAE Government's official guidance explains that the traditional gratuity calculation for eligible expatriate workers is based on the last basic salary rather than automatically including all allowances. Check the employment contract, payroll records and the actual legal classification of the payments.
For eligible full time expatriate employees under the traditional private sector system, the general framework is 21 days of basic salary for each year of the first five years of service and 30 days of basic salary for each additional year after five years, subject to the legal conditions and overall cap. Fractions of a year may be treated proportionately after completing one year of continuous service.
This is a summary, not an individual calculation. Part time and other work patterns can use a different calculation method. A voluntary alternative end of service savings scheme may also replace the traditional system for participating employers and beneficiaries.
For employees covered by the general private sector rule, the official portal states that wages, other entitlements and gratuity are generally payable within 14 days of contract termination. Confirm which rules apply to your employment category before relying on that timing.
A legal review may help clarify the documents and calculation issues relevant to your situation.
Discuss your matterDisclaimer: This is general information, not legal advice or an official gratuity calculation. Actual entitlement depends on the applicable regime, employment type, service history, salary records and lawful deductions or alternative savings arrangements.