UAE gratuity after 5 years — what changes at the 5-year mark
Five years is the point where the UAE rate changes. Service up to that mark accrues 21 days of basic pay a year; every year beyond it accrues 30. The higher rate is not applied retroactively to your earlier years.
Exactly 5 years of service accrues 5 × 21 = 105 days of basic pay. The 30-day rate applies only to service beyond 5 years.
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Frequently asked questions
How much gratuity do I get after exactly 5 years in the UAE?
Five full years accrue 105 days of basic pay (5 × 21). On a basic salary of AED 6,000 that is a daily wage of AED 200 and a gratuity of AED 21,000.
Does the 30-day rate apply to all my years once I pass 5?
No. The higher rate is not retroactive — your first five years stay at 21 days each, and only the years beyond five accrue 30 days.
Is there a maximum UAE gratuity?
Yes. The total is capped at two years’ basic salary, no matter how long you have served.
Do partial years count after the first year?
Yes. Once you have completed one qualifying year, additional service is paid pro-rata, so months beyond a full year still add to your total.