How UAE end-of-service gratuity is actually calculated
The 21-day and 30-day rules, what counts as basic pay, and the three places employers most often get it wrong.
The short version
Gratuity accrues on basic salary, not on gross pay.
For the first five years of service an employee earns 21 days' basic pay per year; from the sixth year onward, 30 days per year.
Where it goes wrong
Counting allowances. Housing and transport allowances are not part of the basic salary the calculation runs on.
Unpaid leave. Days of unpaid leave do not count towards the period of service.
Resignation before five years. Under the current law an employee who resigns is entitled to the full accrual.
What Dawmo does
The accrual is computed nightly from each employee's own contract and shown to them in the app, so the figure at separation is not a surprise.
لم يمر هذا الشرح بعد على مراجع امتثال محدد بالاسم. تعاملوا معه نقطة بداية لا استشارة، وتحققوا مما ستتصرفون بناءً عليه من المصدر المذكور. More on this in UAE employment.