Exactly 5 Years of UAE Service: Which Gratuity Tier Applies?
October 23, 2026
At exactly 5 years of UAE service, the entire tenure is calculated at the 21-day rate. The higher 30-day rate only applies to years of service beyond the fifth — so completing precisely 5 years, with no sixth year started, never triggers the 30-day rate at all.
Skip the math and get your answer instantly:
Open the UAE Gratuity Calculator →Worked Example
Monthly basic salary: AED 7,000. Service: exactly 5 years. Daily basic wage: 7,000 ÷ 30 = AED 233.33.
- Gratuity: 5 × 21 × 233.33 = AED 24,500
- No portion of this uses the 30-day rate, since no year of service beyond the fifth has started
What Changes the Moment Year 6 Starts
As soon as service extends even slightly into a sixth year, that additional period is calculated at the 30-day rate (pro-rated for a partial year), while the first 5 years remain fixed at the 21-day rate already established. The boundary is exactly 5 completed years, not a rounding point.
Frequently Asked Questions
What rate applies at exactly 5 years of UAE service?
The 21-day rate for all 5 years — the 30-day rate only applies to service beyond the fifth year.
What's the gratuity at exactly 5 years on AED 7,000 basic salary?
AED 24,500 (5 years × 21 days × AED 233.33 daily wage).
Does starting a 6th year change the first 5 years' calculation?
No — the first 5 years stay at the 21-day rate; only the additional time in year 6 and beyond uses the 30-day rate.
Is 5 years a rounding point or a hard boundary?
A hard boundary — service must actually extend into a sixth year before any 30-day-rate time accrues.