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End-of-service gratuity
Federal labour law: gratuity is on basic salary, not housing, not transport, not commission. That is why a tiny basic and fat allowances hurt you at exit.
- Qualify after
- 1 year of service
- Years 1–5
- 21 days basic / year
- After 5 years
- 30 days basic / year
- Cap
- 2 years of wages
- Federal labour law: gratuity is on basic salary, not housing, not transport, not commission.
- That is why a tiny basic and fat allowances hurt you at exit.
- DIFC has its own DEWS scheme — different building, different rules.
- Use the calculator on this page for a round number, then read your contract.
- Resignation vs termination used to change the fraction under old law; limited contracts under the 2021 decree-law are simpler, but HR still owes you a written settlement.
Gratuity sketch
Basic only. 21 days/year for the first five years, 30 after. Capped at 24 months of basic. Not legal advice.
Estimated end-of-service
AED 16,800
Practical notes, not official law. Confirm on ICP, MOHRE, RTA, KHDA and your employer before you act.
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