How to Calculate Your UAE End-of-Service Gratuity as a Pakistani Worker: 21 Days a Year
Work out your UAE gratuity: 21 days of basic wage a year for 5 years, then 30 days, capped at 2 years of pay. See examples at AED 3,000 and how to claim it.
Short answer: A foreign worker in the UAE private sector who finishes at least one year gets a gratuity of 21 days of basic wage for each of the first five years and 30 days for each year after that. It is worked on your last basic wage, not on allowances, and it cannot pass two years of wages in total.
Take a Pakistani driver who leaves a Dubai logistics firm after eight years. His payslip says AED 5,000, but only AED 3,000 of that is basic wage. The other AED 2,000 is housing and transport. The gratuity is worked on the AED 3,000. Most disputes start there.
We read the Ministry of Human Resources and Emiratisation (MOHRE) worker rights page and the UAE government page on end-of-service benefits on 12 October 2026. The worked examples below are our own arithmetic, not an official calculator.
The gratuity is 21 days a year, then 30 days a year
MOHRE says a full-time foreign worker with one year or more of continuous service is entitled to a gratuity. It pays a wage of 21 days for each year of the first five years and 30 days for each year beyond that. Part years count in proportion once you have completed one year.
| Service | Rate | Applies to |
|---|---|---|
| Under 1 year | No gratuity | Full-time foreign workers |
| Years 1 to 5 | 21 days of basic wage a year | Each completed year |
| Year 6 onward | 30 days of basic wage a year | Each year after the fifth |
| Part of a year | Pro rata | Only after one full year |
| Total limit | Two years of wages | Whole gratuity |
Only your last basic wage counts
MOHRE says the gratuity is calculated on the last basic wage you were entitled to. Housing, transport and other allowances are outside it. Days of unpaid absence are also left out of your service period.
Check your contract and offer letter for the split. If the document shows one lump sum with no basic figure, ask HR for the basic wage in writing before you sign anything on exit. A pay line called "total salary" is not the same as basic wage.
A worked example at AED 3,000 basic wage
We divide the monthly basic wage by 30 to get a day's wage, which is AED 100 here. That is our working method, so confirm it against your own settlement sheet. At AED 100 a day, one of the first five years is worth AED 2,100, and each later year is worth AED 3,000.
After 3 years the gratuity is AED 6,300. After 5 years it is AED 10,500. After 8 years, five years at AED 2,100 plus three years at AED 3,000 gives AED 19,500. After 10 years it is AED 25,500, and after 12 years AED 31,500. None of these touches the two-year cap of AED 72,000.
What an employer may deduct
MOHRE says the employer may deduct from the gratuity any amounts payable under the law or under a court judgment, within the rules in the implementing regulation. It does not say an employer may hold the gratuity back for any other reason.
Ask for the deductions in writing, line by line. Compare them with what you actually owe. A loan balance you signed for is different from an unexplained "company charge".
The optional savings scheme can replace the gratuity
The UAE government page describes a voluntary alternative called the Savings Scheme. The employer chooses to join. Money is paid each month into an investment fund instead of building a gratuity. The employer pays 5.83% of monthly basic salary under 5 years of service and 8.33% after 5 years.
If your employer has moved you to this scheme, the page says you are entitled to the contributions and returns within 14 days after your employment ends. You may also leave the money invested. Ask which system applies to you before you resign.
How to claim what you are owed
Ask the employer for a written settlement first. If it does not come, file a labour complaint with MOHRE, which tries to settle the dispute before it goes to court.
- Ask HR for your last basic wage, joining date and last working day in writing.
- Work out your gratuity with the rates above and compare it with the settlement sheet.
- Keep your contract, payslips and bank statements.
- If the employer does not pay, file a complaint with MOHRE within the time limit.
- If you have gone home, you can still pursue it. Our guide to recovering unpaid dues from abroad through OPF shows the Pakistan side.
The filing steps are in our guide to a MOHRE labour complaint. Saudi rules differ, and if you worked there instead, use our guide to the Saudi end-of-service award.
Common questions
Do I get a gratuity if I resign?
The MOHRE page we read ties the gratuity to completing a year of service and does not cut it for resignation. We did not read a resignation reduction. Check your case with MOHRE if your employer claims one.
Does the gratuity use my total salary?
No. It uses the last basic wage. Allowances such as housing and transport are not counted.
Is there a minimum service period?
Yes, one year of continuous service. Below that, a full-time foreign worker gets no gratuity under this rule.
What is the maximum gratuity?
Two years of wages in total. At a basic wage of AED 3,000 that would be AED 72,000.
Can unpaid leave days reduce my gratuity?
Yes. Days of unpaid absence are not counted as service, so they shorten the period used in the calculation.
When must the employer pay?
We did not read a payment deadline for the ordinary gratuity on the pages we opened. It is reported as 14 days from the end of the contract. The savings scheme page does state 14 days for that scheme.
How we verified this
What we checked, where we read it, and what we could not confirm.
We read the MOHRE worker rights page at mohre.gov.ae and the UAE government page on end-of-service benefits at u.ae on 12 October 2026. Our examples are arithmetic from those rates. Part-time and piece-rate workers have separate formulas on the MOHRE page that we do not cover here.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
