UAE Gratuity Eligibility

Who qualifies for UAE end-of-service gratuity, minimum service requirements, and special categories under Federal Decree-Law No. 33 of 2021.

Basic Eligibility Requirement

Under the general UAE private-sector framework (Federal Decree-Law No. 33 of 2021), the standard eligibility requirement is:

✓ Minimum 1 complete year (365 days) of continuous eligible service

If you have not completed one full year, you are generally not entitled to gratuity under the standard framework. There is no partial gratuity for less than one year under the general rules.

What Counts as Continuous Service?

Continuous service means uninterrupted employment with the same employer. Breaks in employment generally reset the service counter. However:

  • Approved paid leave (annual, sick, maternity, etc.) counts toward service
  • Approved unpaid leave may be excluded from the eligible service period but does not necessarily break continuity
  • Transfers between companies in the same corporate group should be reviewed carefully — this may or may not reset the counter depending on circumstances

Service Period and Rate Summary

Service PeriodEligible?Rate
Less than 1 year❌ Generally no—
1 year to 5 years✅ Yes21 days/year
Beyond 5 years✅ Yes (higher rate)30 days/year

Probation Period

The probation period (up to 6 months under the current law) is generally considered part of total service. If employment continues beyond probation, the probation period counts toward the total service for gratuity purposes. If employment ends during probation, standard gratuity may not apply.

Unpaid Leave and Eligibility

Periods of approved unpaid absence are generally excluded from the eligible service calculation. For example, if you had 60 days of unpaid leave during a 400-day total employment period, your eligible service is 340 days — just short of the 365-day threshold, meaning you would not be eligible.

Unpaid Leave Impact Example
Total employment: 400 days Unpaid absence: 60 days (approved) Eligible service: 400 - 60 = 340 days Result: NOT eligible (less than 365 days)

Part-Time and Other Work Models

Federal Decree-Law No. 33 of 2021 recognises multiple work models: full-time, part-time, temporary, flexible, remote, and shared-work. Part-time and other non-standard arrangements may have specific gratuity calculation rules that differ from the standard full-time framework. Verify your specific entitlement with MOHRE.

Special Categories

  • UAE nationals: Generally covered by pension schemes (GPSSA), not standard gratuity
  • Domestic workers: Covered by a separate legal framework — see domestic worker gratuity
  • DIFC workers: DIFC Employment Law applies — different rules
  • ADGM workers: ADGM Employment Regulations apply — different rules
  • End-of-Service Savings Scheme enrollees: EOSB paid through the scheme, not traditional gratuity

Quick Eligibility Check

Ask yourself these questions:

  • Have I been employed by the same employer for at least 365 days of eligible service?
  • Am I a private-sector worker subject to UAE federal Labour Law?
  • Is my employment ending (resignation, termination, contract expiry)?

If you answered yes to all three, you are likely eligible. Use ourgratuity calculator to estimate your amount.

⚠ Disclaimer: This calculator provides an estimate only, based on the general UAE private-sector framework under Federal Decree-Law No. 33 of 2021. It does not constitute legal advice. Individual entitlements may differ based on employment contract, applicable free-zone rules, special work models, unpaid absences, and other factors. Always verify your specific entitlement with your employer, MOHRE, or a qualified UAE employment lawyer.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.

Official Sources

GovUAE Government Portal — u.aeMOHREMinistry of Human Resources — mohre.gov.ae
LawFederal Decree-Law No. 33 of 2021 — Article 51
Last reviewed: 2025-01-15 • Rule version: 2021-DL33 • Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.

Eligibility FAQs

Who is eligible for gratuity in the UAE?

Under the general UAE private-sector framework, employees who have completed at least one full year of continuous service are eligible for end-of-service gratuity. This applies to qualifying private-sector employees. Special categories such as domestic workers, free-zone workers, UAE nationals covered by pension schemes, and workers under the End-of-Service Savings Scheme may have different rules.

Is 5 years compulsory for gratuity?

No. In the UAE, the minimum requirement is one full year of continuous service. You become eligible for gratuity after completing one year, not five. The 5-year threshold is only significant because it determines the rate: for the first 5 years, the rate is 21 days per year; for service beyond 5 years, it increases to 30 days per year.

Is gratuity eligible for 5 years or 4.8 years?

In the UAE, gratuity eligibility begins after one full year of service. There is no 4.8-year or 4 years 8 months rule for basic eligibility. A common misconception comes from India, where some interpretations of the Payment of Gratuity Act consider 4 years and 240 days (approximately 4.8 years) as qualifying for the 5th year. This does not apply in the UAE.

Is 4 years 7 months eligible for gratuity?

Yes, in the UAE, any completed period of service of at least one year makes you eligible for gratuity. If you have worked 4 years and 7 months, you are eligible. You will receive gratuity for 4 complete years at 21 days per year, plus a proportional amount for the additional 7 months. Use our calculator to see the exact amount.

Will I get gratuity for 4.11 years?

Yes. In the UAE, you are eligible for gratuity after one complete year. If you have served approximately 4 years and a fraction, you are eligible. The 4 complete years will be calculated at 21 days per year, and the partial year will be calculated proportionally. Enter your exact dates into our calculator for a precise estimate.

Does probation count toward gratuity?

Under UAE Labour Law, the probation period (up to 6 months) is generally considered part of the total service period for gratuity calculation purposes, provided the employment continues beyond probation. If employment is terminated during probation, gratuity rules may differ. Consult MOHRE or your employment contract for specific terms.

Does unpaid leave affect gratuity?

Periods of approved unpaid leave may be excluded from the eligible service period used for gratuity calculation under the general UAE framework. This can reduce the effective service period. Our calculator includes an optional field to enter unpaid absence days, which are then excluded from the service period. Verify your specific situation with MOHRE.

What is rule 3 of gratuity?

This question appears to reference Indian gratuity rules, not UAE rules. In India, Rule 3 of the Payment of Gratuity Rules relates to notice of application for gratuity. In the UAE, the relevant legal basis is Federal Decree-Law No. 33 of 2021, particularly Article 51 for the calculation and Article 53 where applicable. UAE and Indian gratuity rules are separate systems.

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