Gratuity Eligibility in UAE 2025 – Rules, Conditions & MOHRE Guidelines

In the United Arab Emirates, end-of-service gratuity plays an essential role in protecting employee rights. It’s a financial reward that recognizes years of service when an employee’s job ends, ensuring fair compensation under the country’s labour regulations.

The updated UAE Labour Law 2025, issued under Federal Decree-Law No. 33 of 2021 and supervised by the Ministry of Human Resources and Emiratisation (MOHRE), defines clear conditions for who qualifies and how gratuity is calculated.

Whether you work in a private company or a free-zone entity, understanding gratuity eligibility helps you know exactly when you’re entitled to receive end-of-service benefits. The 2025 MOHRE guidelines aim to make these rules transparent for both employers and employees, ensuring fair treatment across all sectors. you can easily check your gratuity using the UAE Gratuity Calculator.

Overview of Gratuity Eligibility in UAE 2025

Gratuity eligibility in the UAE is based on clear laws that protect employee rights and ensure fair treatment at the end of their service. It is part of the end-of-service benefits that every private sector employee is entitled to under the UAE Labour Law.

According to the Ministry of Human Resources and Emiratisation (MOHRE), any employee who completes at least one year of continuous service qualifies for gratuity. The payment is calculated based on the worker’s last basic salary and the total number of years they have worked.

The UAE government updates these rules regularly to make the process transparent for both employers and employees. Whether you are a UAE national or an expatriate, the law ensures that you receive your due compensation once your employment ends.

In 2025, these updated MOHRE guidelines continue to protect employees, maintain fairness in workplaces, and encourage companies to follow proper procedures when ending an employment contract.The UAE Gratuity Calculator helps workers know their estimated end-of-service pay.

MOHRE Guidelines for Gratuity Eligibility

The Ministry of Human Resources and Emiratisation (MOHRE) is the main authority that manages and enforces gratuity laws in the UAE. It provides official rules that define when an employee becomes eligible for end-of-service benefits. MOHRE rules and the UAE Gratuity Calculator follow the same calculation method.
According to MOHRE’s latest guidelines for 2025:

• An employee must complete at least one full year of continuous service to be eligible for gratuity.
• The benefit applies only to employees working under the UAE Labour Law, excluding certain categories like domestic workers or government employees (who have separate systems).
• Gratuity is calculated on the basis of the last basic salary, not including allowances, bonuses, or commissions.
• If an employee resigns or their service ends, the employer must pay the gratuity within 14 days from the last working day.
• Termination due to serious misconduct under Article 44 of the Labour Law can cancel gratuity eligibility.

MOHRE ensures that companies follow these rules strictly and that workers can file complaints through MOHRE channels if their gratuity is delayed or denied.

These clear guidelines protect both employees and employers by maintaining transparency, reducing disputes, and ensuring compliance with the UAE Labour Law 2025.

Minimum Service Period for Gratuity in UAE

To qualify for gratuity in the UAE, an employee must complete a minimum of one year of continuous service with the same employer. If the service period is less than one year, the worker is not entitled to any gratuity payment under the law. You can use the UAE Gratuity Calculator to see how much you earn after one year

Here’s how the gratuity is calculated based on years of service:

• Less than 1 year: Not eligible for gratuity.
• 1 to 5 years of service: Entitled to 21 days of basic salary for each year worked.
• More than 5 years of service: Entitled to 30 days of basic salary for each additional year after the fifth year.

This calculation only includes the basic wage and excludes housing, transport, or other allowances.

These service periods are clearly defined by MOHRE to ensure that all employees receive a fair amount according to their total time with the company.

Gratuity Eligibility for Limited and Unlimited Contracts

In the UAE, gratuity also depends on the type of employment contract. There are two main kinds of contracts under the labour law: limited and unlimited. Each has its own rules for gratuity eligibility.

Limited Contract:
A limited contract has a fixed period that both the employer and employee agree on. If an employee completes the full duration of the contract and has worked for at least one year, they become eligible for gratuity. But if the employee leaves before the end of the contract, the gratuity may be reduced or not paid at all, depending on the reason and service period.

Unlimited Contract:
An unlimited contract does not have an end date. It continues until either the employee or employer decides to end it with proper notice. Employees under an unlimited contract qualify for gratuity after completing one full year of service. The amount they receive depends on how long they have worked and the reason for leaving the job.

The 2025 MOHRE rules make both contract types easier to understand. The main point is simple: an employee must complete at least one year of continuous work and leave the company in a proper way to receive the end-of-service gratuity. The UAE Gratuity Calculator gives separate results for both contract types.

Conditions Affecting Gratuity Eligibility

Some specific conditions can affect whether an employee will receive gratuity or not. These rules are mentioned clearly in the UAE Labour Law and followed under MOHRE guidelines.

Probation Period:
If an employee leaves the company during the probation period, gratuity is not given. The probation time is not counted toward the service period required for gratuity.

Unpaid Leave:
Unpaid leaves are not included in the total service time used to calculate gratuity. Only paid working days are counted.

Termination for Misconduct:
If a worker is terminated for serious misconduct under Article 44 of the Labour Law, they lose the right to receive gratuity.

Resignation Before One Year:
An employee who resigns before completing one full year of service is not eligible for gratuity.

Absconding or Long Absence:
If an employee leaves work without notice or disappears from the job, this is treated as absconding. In this case, gratuity is also not paid.

Break in Service:
If a worker leaves and later joins the same company again, the previous service is not automatically added unless both sides agree in writing.

These conditions make sure that gratuity is only given to employees who have completed their service properly and followed company and legal rules.Employees can verify their benefits through the UAE Gratuity Calculator before resigning.

Gratuity Eligibility in UAE Free Zones

In the UAE, many employees work under free zone authorities, and each free zone has its own rules and employment system. However, most of them follow the same gratuity structure as the UAE Labour Law under MOHRE.

Employees working in free zones like Dubai Internet City, JAFZA, Abu Dhabi Global Market (ADGM), or Dubai International Financial Centre (DIFC) are usually entitled to gratuity if they complete at least one year of service. But the calculation process and payment method can vary depending on the zone’s internal regulations.

For example, DIFC has a different Employee Workplace Savings Plan (DEWS) instead of the traditional gratuity system, while other zones still use the standard MOHRE method.

To avoid confusion, it is always better to check your company’s HR policy or free zone authority’s website. You can also use the UAE Gratuity Calculator to get an estimated amount based on your last salary and total years of work.

For more details on this topic, visit our Free Zone Gratuity Guide to understand how rules differ across various UAE zones.

Common Misunderstandings About Gratuity Eligibility

Many employees in the UAE still have wrong ideas about how gratuity works. These misunderstandings often lead to confusion when calculating end-of-service payments. Knowing the correct rules helps avoid disputes and protects your rights under the law.

Myth 1: Gratuity is only for people who work five years or more.
This is not true. Any employee who completes at least one year of service is eligible for gratuity, as per UAE Labour Law.

Myth 2: Gratuity includes all allowances and bonuses.
Gratuity is always calculated only on the basic salary, not on housing, transport, or other benefits.

Myth 3: Resigned employees do not get gratuity.
Employees who resign after one year of continuous service are also entitled to gratuity.

Myth 4: Employers can delay gratuity payments.
By law, employers must pay gratuity within 14 days after the employee’s final working day.

Myth 5: All companies follow the same rule.
Most private companies follow MOHRE laws, but some free zones (like DIFC or ADGM) have their own systems.

Understanding these facts helps employees make better use of the UAE Gratuity Calculator and prevents them from believing in false information.

To learn more about the most frequent mistakes and how to avoid them, check our Common Gratuity Mistakes to Avoid.

Gratuity Payment Process (Step by Step)

After an employee’s service ends, the company must follow a clear process to calculate and pay the gratuity amount. The UAE Labour Law and MOHRE guidelines make this process simple and transparent.

Step 1: Verify Eligibility
The employer checks if the employee has completed at least one year of continuous service. Only then can gratuity be calculated.

Step 2: Calculate the Amount
The gratuity is calculated based on the last basic salary and the total years of service. Many companies and workers use the UAE Gratuity Calculator to get an accurate estimate.

Step 3: Prepare Final Settlement
The company includes unpaid salary, leave balance, and gratuity in the final payment summary.

Step 4: Pay Within 14 Days
As per Article 53 of the UAE Labour Law, the employer must pay all dues, including gratuity, within 14 days after the employment contract ends.

Step 5: MOHRE Assistance (if needed)
If the payment is delayed or not made, the employee can file a complaint through the MOHRE website, app, or service center. MOHRE will help resolve the issue and ensure that the worker receives their legal payment.

Following this process ensures that employees get their full rights and employers remain compliant with the law.

To check your own estimated amount instantly, you can use the UAE Gratuity Calculator and see how much you’re entitled to receive in 2025.

MOHRE Legal References

The rules for gratuity in the UAE are fully supported by the country’s labour legislation. These laws make sure that employees receive their rightful end-of-service payments and that employers follow the correct procedures.
The main legal documents related to gratuity are:

1. Federal Decree-Law No. 33 of 2021 – This is the current UAE Labour Law that explains gratuity eligibility, calculation, and payment conditions.

2. Ministerial Resolution No. 47 of 2022 – This resolution provides detailed guidelines for implementing the Labour Law and clarifies MOHRE’s authority.

3. Article 51 & Article 53 – These sections specifically explain how gratuity should be calculated and when it must be paid.

4. Article 44 – This article outlines cases where gratuity can be denied due to serious misconduct.

All these laws are monitored by the Ministry of Human Resources and Emiratisation (MOHRE) to ensure employees are treated fairly.

Anyone can read the full version of these laws on the official MOHRE website or through government legal portals. The UAE Gratuity Calculator also follows these same legal standards, making it a reliable tool for estimating your end-of-service benefits.

For a detailed breakdown of these laws, you can visit our UAE Labour Law 2025 Guide for updated references and explanations.

FAQs About Gratuity Eligibility in UAE 2025

Final Thoughts on Gratuity Eligibility in UAE 2025

Understanding gratuity eligibility is very important for both employees and employers in the UAE. It helps workers know their rights and ensures that companies follow the labour law correctly.

The updated 2025 rules under MOHRE make the process easier and more transparent. Every private-sector employee who completes one year of service has the right to receive an end-of-service payment. Using the UAE Gratuity Calculator is the simplest way to estimate this amount accurately.

Employees should always check their contract type, confirm the correct service period, and verify that gratuity is paid on time. On the other hand, employers must follow the law and make the final payment within 14 days after the employee’s last working day.

For a deeper understanding, readers can explore helpful guides like the Resignation Gratuity Calculation Guide , the Free Zone Gratuity Guide, and the main UAE Labour Law 2025 Reference.

By learning these rules, every employee can plan their future confidently and make sure they receive what they truly deserve at the end of their service.