How much gratuity after 10 years in the UAE?
Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the UAE Labour Law; not legal advice.
With a basic salary of AED 5,000 and exactly 10 years of continuous service, your gratuity after 10 years in the UAE is AED 42,500 — that is 8.5 months of your last basic salary. The calculation runs in two bands: 21 days of basic salary for each of the first 5 years, then 30 days of basic salary for each of years 6 to 10.
The gratuity formula for 10 years in the UAE
Under Article 54 of Federal Decree-Law No. 33 of 2021, the UAE Labour Law, a full-time private-sector worker with at least one year of continuous service earns end-of-service gratuity on the last basic salary: 21 days of basic salary for each of the first five years, and 30 days of basic salary for every year after that. For gratuity after 10 years in the UAE, the two bands join into one simple rule.
Start with the daily wage — your last basic salary divided by 30. The first five years earn 21 days each (105 days in total); years six to ten earn 30 days each (150 days in total). That gives 255 days of basic salary, which is exactly 8.5 months. So the fastest way to estimate gratuity after 10 years in the UAE is a one-line formula: last basic salary × 8.5.
Related reading: how gratuity is calculated in the UAE explains the full formula behind these bands, and our free UAE gratuity calculator does the arithmetic for any service length.
Worked example: AED 5,000 basic salary, 10 years of service
Take a worker with a last basic salary of AED 5,000 and exactly 10 years of continuous service — no breaks, no unpaid absence.
- Step 1 — daily wage: 5,000 ÷ 30 = AED 166.67.
- Step 2 — the first 5 years at 21 days a year: 166.67 × 21 × 5 = AED 17,500.
- Step 3 — years 6 to 10 at 30 days a year: 166.67 × 30 × 5 = AED 25,000.
- Step 4 — add the two bands: 17,500 + 25,000 = AED 42,500.
- Step 5 — check the cap: two years’ salary is 5,000 × 24 = AED 120,000, far above 42,500, so the cap does not apply.
Gratuity after 10 years at different basic salaries
Because gratuity after 10 years in the UAE is always 8.5 months of basic salary, any figure is one multiplication away. The table below uses the standard gratuity formula — before rounding and the 2-year cap, which never applies at 10 years.
| Basic salary (AED) | Gratuity after 10 years (AED) | In months of basic salary |
|---|---|---|
| 3,000 | 25,500 | 8.5 |
| 4,000 | 34,000 | 8.5 |
| 5,000 | 42,500 | 8.5 |
| 6,000 | 51,000 | 8.5 |
| 8,000 | 68,000 | 8.5 |
| 10,000 | 85,000 | 8.5 |
| 12,000 | 102,000 | 8.5 |
What counts toward your gratuity after 10 years
- Only your last basic salary. Housing, transport, commissions and other allowances are excluded — the daily wage is basic salary ÷ 30, so a big allowances package does not raise the figure.
- At least 1 year of continuous service is needed to qualify; after 10 years this condition is obviously met.
- Days of unpaid absence are not counted as service.
- A raise in year 9 lifts the whole award, because the law looks at your last basic salary — and a pay cut lowers it.
- Part-time workers earn gratuity under the same bands, calculated pro-rata on their contracted working hours.
The 2-year salary cap
Article 54 of the UAE labour law caps the total award at 24 months of basic salary. After 10 years you earn 8.5 months — the cap is nowhere near your figure. It only bites after very long service: the full 21/30-day formula reaches 24 months at around 25.5 years of service.
What if you worked 10 years and 6 months?
Part-years count proportionally, so do not throw them away. The extra six months fall in the 30-day band: (basic salary ÷ 30) × 30 × 0.5 = half a month of basic salary. On AED 5,000 that is AED 2,500 extra, so 10.5 years of service earns AED 45,000.
5 years vs 10 years: how the gratuity grows
At the same AED 5,000 basic salary, 5 years of service earns AED 17,500 (3.5 months of basic salary), while gratuity after 10 years in the UAE earns AED 42,500 (8.5 months). The second five years are worth more than the first because the 30-day band takes over from year 6 — each year after the fifth earns about 43% more than an early year.
Common mistakes when estimating 10-year gratuity
- Using total salary instead of basic salary. Allowances are excluded, and including them inflates the estimate by thousands — this is the single most common error.
- Applying the 30-day rate to all 10 years. The first 5 years are always at 21 days; the 30-day rate starts only at year 6.
- Dropping extra months. Six extra months are worth half a month of basic salary, not zero.
- Using an old basic salary. A recent raise lifts the entire award because only the last basic salary counts.
- Forgetting DIFC/ADGM. This mainland formula does not apply in Dubai’s and Abu Dhabi’s financial free zones, which run their own schemes.
When and how you receive your gratuity
Under the UAE labour law, the employer must pay everything — gratuity included — within 14 days of your last working day, as part of your final settlement in the UAE. Ask for a written breakdown of the calculation before you sign anything. If the money does not arrive, see what to do when your final settlement is not paid. And if you are leaving by choice, check whether you get full gratuity when you resign in the UAE — since 2022, resignation no longer reduces the award.
Double-check your 10-year figure in five minutes
- Write down your last basic salary from a recent payslip, with allowances stripped out.
- Count your continuous service in years and months, including any notice period you served.
- Multiply: basic salary × 8.5 for exactly 10 years — or skip the arithmetic with our free UAE gratuity calculator.
- Compare the result against the 2 years’ salary ceiling (it will not apply at 10 years, but build the habit).
- If the employer’s figure differs, ask for their written calculation and do not sign a final settlement you do not fully understand.
Frequently asked questions
How much gratuity after 10 years in the UAE with a basic salary of AED 5,000?
AED 42,500. The first 5 years earn 21 days of basic salary per year (AED 17,500), and years 6 to 10 earn 30 days per year (AED 25,000).
Is gratuity after 10 years in the UAE equal to 8.5 months’ salary?
Yes — 8.5 months of your last basic salary, not your total salary. The arithmetic: (21 days × 5 + 30 days × 5) ÷ 30 = 255 days ÷ 30 = 8.5 months.
Does UAE gratuity include allowances after 10 years?
No. Only your last basic salary counts toward the daily wage. Housing, transport, commissions and other allowances are excluded, so the figure is lower than the total package many workers see on their payslip.
What is the maximum gratuity you can get in the UAE?
Two years’ (24 months’) basic salary. After 10 years you earn 8.5 months, so the cap does not affect you — it only matters after about 25.5 years of service.
Do I get full gratuity if I resign after 10 years in the UAE?
Yes. Since the February 2022 labour law change, resigning no longer reduces the award. With more than 1 year of continuous service you receive the full amount however the job ends.
Work out your own amount
Enter your dates and salary to see your end-of-service pay instantly.
More questions
- Full gratuity if you resign?
- What is the notice period?
- How is overtime paid?
- Final settlement not paid? What to do
Sources
This guide is based on the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Labour laws are amended from time to time; for the latest version, always check the official gazette of UAE.
