UAE Gratuity Example: 8 Years of Service, Mixing the 21-Day and 30-Day Tiers
October 23, 2026
Past 5 years of service, UAE gratuity stops being a single multiplication — the first 5 years are paid at 21 days per year, and every year after that at 30 days per year. Here's a full 8-year example.
Skip the math and get your answer instantly:
Open the UAE Gratuity Calculator →The Numbers
Monthly basic salary: AED 10,000. Daily basic wage: 10,000 ÷ 30 = AED 333.33.
- Years 1-5 (21-day rate): 5 × 21 × 333.33 = AED 35,000
- Years 6-8, three years (30-day rate): 3 × 30 × 333.33 = AED 30,000
- Total gratuity: AED 35,000 + AED 30,000 = AED 65,000
The Mistake to Avoid
A common error is applying 30 days to all 8 years (giving a wrong total of AED 80,000) or applying 21 days to all 8 years (giving a wrong total of AED 56,000). Only the years beyond the fifth get the higher 30-day rate — the first five are always at 21 days, no matter how long the total tenure eventually is.
Frequently Asked Questions
At what point does the 30-day rate start applying?
Starting with the sixth year of service — the first five years are always calculated at 21 days per year.
What is the total gratuity for 8 years at AED 10,000 basic?
AED 65,000 — AED 35,000 for the first 5 years plus AED 30,000 for the remaining 3 years at the higher rate.
Is the 30-day rate applied to all years once you pass 5 years?
No — only to the years after the fifth. The first 5 years keep their original 21-day valuation.
Does the cap affect this example?
No — AED 65,000 is well below the cap of two years' wage (AED 240,000 at this salary).