Gratuity is calculated only on the last drawn basic salary. It excludes allowances like housing, transport, and utilities. 

Yes. Divide your basic monthly salary by 30 to get the daily wage, then multiply it by 21 or 30, based on your total years of service. 

Yes, as long as you’ve completed at least one year of continuous service. Resignation still qualifies you for gratuity under the law. 

Under the new UAE Labour Law, all employment contracts are limited (fixed-term). Gratuity is calculated as: 

• 21 days’ pay per year for the first 5 years 
   

• 30 days’ pay per year for each additional year 

No, gratuity is not paid monthly. It’s a lump-sum payment made at the end of employment. 

You’ll need: 

• Type of contract (now all are limited) 
   

• Last basic salary 
   

• Total years of service 
   

You must complete at least 1 year of service. 

• 1–5 years: 21 days’ basic pay per year 
   

• Over 5 years: First 5 years = 21 days/year, after that = 30 days/year 

Previously, gratuity under unlimited contracts varied: 

• 1–3 years (resignation): 1/3 of 21 days/year 
   

• 3–5 years: 2/3 of 21 days/year 
   

• 5+ years: Full 21 days/year 
   

Now, all contracts are limited, and gratuity is calculated as: 

• 21 days/year for up to 5 years 
   
• 30 days/year after 5 years