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BahrainGratuity for AED 3,000 basic after 5 years in UAE
After one year of continuous service you get 21 days' basic pay for each of your first five years and 30 days' basic pay for each year after that, pro-rated for part years, up to a maximum of two years' total pay. Housing, transport and other allowances are not counted - only your basic wage. Calculated on the basic wage, under Article 51, Federal Decree-Law No. 33 of 2021.
105.00 days of wage × AED 100.00 per day.
How this number is worked out
The same arithmetic the page just ran, step by step.
| Step | Value |
|---|---|
| Wage used | AED 3,000.00 per month (basic) |
| Daily wage | AED 100.00 = monthly ÷ 30 |
| Days earned per year | first 5 years: 21 days · thereafter: 30 days |
| Months' wage cap | 24 months |
| Resignation reduction | none — same on resignation |
What you get after different lengths of service
On a AED 3,000 basic wage, as a resignation.
| Years | Days earned | AED payable |
|---|---|---|
| 1 years | 21.00 | 2,100.00 |
| 3 years | 63.00 | 6,300.00 |
| 5 years | 105.00 | 10,500.00 |
| 7 years | 165.00 | 16,500.00 |
| 10 years | 255.00 | 25,500.00 |
| 15 years | 405.00 | 40,500.00 |
Each row links to its own page with the full breakdown.
The rule in plain words
After one year of continuous service you get 21 days' basic pay for each of your first five years and 30 days' basic pay for each year after that, pro-rated for part years, up to a maximum of two years' total pay. Housing, transport and other allowances are not counted - only your basic wage. Figures read from the official U.AE page (updated 15 Oct 2026), which cites Article 51. Resignation and dismissal are treated the same under the 2021 law (the old 1980 law's one-third/two-thirds resignation reductions no longer apply). A voluntary alternative 'Savings Scheme' (Cabinet Resolution No. 96 of 2023, Ministerial Resolution No. 668 of 2023) lets employers pay 5.83% of basic monthly instead of accruing gratuity. The law is Federal Decree-Law No. 33 of 2021 as amended (3 amendments listed on the UAE Legislation platform, which shows the law as 'Active').
Frequently asked questions
- Is gratuity calculated on basic salary or total salary in UAE?
- On the basic wage only — allowances such as housing and transport are excluded. That is why a AED 3,000 basic wage and a AED 3,000 total package can produce very different settlements.
- Does resigning reduce my gratuity?
- In UAE, no — the same formula applies whether you resign or the employer terminates the contract.
- Does a fixed-term contract change the amount?
- The end-of-service formula applies to both limited and unlimited contracts in UAE; what changes with a fixed-term contract is the notice and the early-termination compensation, not the gratuity rate.
- Is gratuity paid on unused leave too?
- Unused annual leave is a separate entitlement and is paid out at the end of service in addition to gratuity. This calculator does not include it.
- What if my service is part of a year?
- Partial years count proportionally. At 5.0 years you have earned 105.00 days of wage.
SourceArticle 51, Federal Decree-Law No. 33 of 2021UpdatedArticle numbers and figures are transcribed from the linked official text. Laws change — confirm with the labour ministry before relying on a settlement figure.