For exactly two years of qualifying service, UAE gratuity is normally equal to 42 days of basic wage. Divide the last monthly basic salary by 30, then multiply the daily amount by 42.
Two-year formula(Monthly basic salary ÷ 30) × 42 days
How to calculate gratuity in UAE for 2 years
Assume the employee completed two full years, had no unpaid absence and is covered by the standard federal private-sector formula.
- Find the last monthly basic salary.
- Divide it by 30 to obtain the daily basic wage.
- Multiply the daily amount by 21 days for year one.
- Multiply it by another 21 days for year two.
Example: AED 5,000 basic salary for 2 years
- Daily basic wage: AED 5,000 ÷ 30 = AED 166.67
- Gratuity days: 2 × 21 = 42 days
- Estimated gratuity: AED 166.67 × 42 = AED 7,000
Two-year gratuity examples by basic salary
| Monthly basic salary | Daily basic wage | Gratuity days | Estimated gratuity |
|---|---|---|---|
| AED 3,000 | AED 100 | 42 | AED 4,200 |
| AED 5,000 | AED 166.67 | 42 | AED 7,000 |
| AED 8,000 | AED 266.67 | 42 | AED 11,200 |
| AED 10,000 | AED 333.33 | 42 | AED 14,000 |
UAE gratuity days from 1 to 10 years
The table shows gratuity days before multiplying by the daily basic wage. It assumes full years, full-time work and no unpaid absence.
| Service | Gratuity days | Equivalent basic-salary months |
|---|---|---|
| 1 year | 21 | 0.70 month |
| 2 years | 42 | 1.40 months |
| 3 years | 63 | 2.10 months |
| 4 years | 84 | 2.80 months |
| 5 years | 105 | 3.50 months |
| 6 years | 135 | 4.50 months |
| 7 years | 165 | 5.50 months |
| 8 years | 195 | 6.50 months |
| 9 years | 225 | 7.50 months |
| 10 years | 255 | 8.50 months |
How a partial year changes the result
After one completed year, a part of the next year is calculated proportionally. For example, two years and six months normally means 2.5 years at the 21-day rate, giving 52.5 gratuity days before any work-pattern adjustment.
What can make the two-year result different?
- Unpaid absence reduces eligible service.
- A part-time or job-sharing ratio may reduce the full-time value.
- A special jurisdiction or end-of-service savings scheme may use another method.
- The employer may provide a more generous contractual benefit.
- Lawful deductions can affect the final amount paid.
Frequently asked questions
How much gratuity is paid for 2 years in the UAE?
Two full qualifying years equal 42 days of basic wage under the standard formula.
What is the gratuity for AED 5,000 basic salary and 2 years?
The estimate is AED 7,000: AED 5,000 divided by 30, multiplied by 42 days.
How much is gratuity for 5 years?
Five full years equal 105 days of basic wage, or 3.5 months of basic salary.
What happens after 5 years?
Each full year after year five adds 30 days of basic wage instead of 21 days.
Does six months count after two years?
Yes. Once at least one year has been completed, a partial year is calculated proportionally.