Calculating Gratuity in Dubai: How Much Will I Get After 2 Years on an Unlimited Contract?

As per the UAE Labour Law, you are entitled to receive gratuity. The law specifies that an employee employed under a contract of unspecified terms who resigns after a continuous service of not less than a year and not more than three years is entitled to one-third (i.e., seven days) of the end-of-service gratuity. If the period of continuous service was more than three years and less than five years, the employee is entitled to two-thirds (14 days) of the gratuity. If the service exceeds five years, then from the fifth year onwards, the employee is entitled to a gratuity of 30 days per year, provided that the total gratuity shall not exceed the wages of two years. Therefore, after the completion of your third year in the job, your gratuity shall be calculated as 21 days (i.e., your one day's salary multiplied by 21) will be your third year's gratuity. If you resign before the completion of the third year, you are entitled only to seven days of gratuity.