AED 5000 Salary Gratuity in UAE (2026): How Much Will You Get?
Wondering what your AED 5000 salary gratuity actually comes to? If your basic salary is AED 5,000, this page gives you the exact figure for every length of service — and then shows what each setting in the calculator does to that number.
All figures use the current UAE Labour Law, Federal Decree-Law No. 33 of 2021.
Quick Answer
| Years of service | Gratuity |
|---|---|
| 1 year | AED 3,500 |
| 2 years | AED 7,000 |
| 3 years | AED 10,500 |
| 4 years | AED 14,000 |
| 5 years | AED 17,500 |
| 6 years | AED 22,500 |
| 7 years | AED 27,500 |
| 8 years | AED 32,500 |
| 10 years | AED 42,500 |
| 15 years | AED 67,500 |
| 20 years | AED 92,500 |
Resigning does not reduce any of these figures.
How AED 5000 Salary Gratuity Is Calculated
Your daily wage: AED 5,000 ÷ 30 = AED 166.67
| Service period | Days per year | Value per year |
|---|---|---|
| Years 1 to 5 | 21 days | AED 3,500 |
| Year 6 onwards | 30 days | AED 5,000 |
Each of your first five years is worth AED 3,500. Every year after that is worth AED 5,000.
Year six is the milestone. Crossing five years lifts your annual accrual by AED 1,500 — a 43% jump. At four years and ten months, those last two months are worth far more than the ten before them.
Every Calculator Setting and What It Does to Your AED 5000 Salary Gratuity
This is the part most guides skip. Here is what actually moves your number.
Basic salary — the biggest lever
Not your package. Your basic.
| Contract shows | Basic used | Gratuity after 5 years |
|---|---|---|
| AED 5,000 all basic | 5,000 | AED 17,500 |
| AED 5,000 total (3,000 basic + 2,000 allowances) | 3,000 | AED 10,500 |
Same salary on paper. AED 7,000 of difference. Housing, transport, commission, overtime and bonuses are all excluded.
Find the line in your contract that says “basic salary” and use only that.
First working day — start from your original joining date
Enter the date you first joined, not the start of your latest contract renewal. Renewals are continuous service.
| What you enter | Service counted | Gratuity |
|---|---|---|
| Original joining date (2020) | 6 years | AED 22,500 |
| Latest renewal date (2024) | 2 years | AED 7,000 |
Getting this wrong costs AED 15,500.
Last working day — include your notice period
Your notice period is part of your service. Enter the final day of notice, not the day you handed in your resignation.
On a 60-day notice period at AED 5,000, those two months are worth around AED 583 in the 21-day band, or AED 833 in the 30-day band.
Labour Law Version — leave it on Current Law
This is the setting people change by mistake.
Current Law (Decree-Law No. 33 of 2021) is correct for anyone leaving today. Resignation and termination pay the same, and no contract type matters.
Old Law (Federal Law No. 8 of 1980) only applies if your employment ended before February 2022, or you are checking a historic settlement.
Switching to Old Law reveals two extra fields — Contract Type and Separation Method — which do not exist under the current law.
Contract Type — only appears under Old Law
Under the repealed law, this changed everything for people who resigned.
AED 5,000, resignation, Old Law:
| Service | Unlimited contract | Limited contract |
|---|---|---|
| 2 years | AED 2,333 (one third) | AED 0 |
| 4 years | AED 9,333 (two thirds) | AED 0 |
| 7 years | AED 27,500 (full) | AED 27,500 (full) |
Under the current law, all of these pay in full. Contract type has no effect on your gratuity at all.
Separation Method — also Old Law only
Under the old law, being terminated paid more than resigning.
AED 5,000, 4 years, Old Law, unlimited contract:
| Separation | Gratuity |
|---|---|
| Terminated by employer | AED 14,000 |
| Resigned | AED 9,333 |
Under the current law, both pay AED 14,000. This is the single biggest improvement the 2021 law made for employees.
Unpaid Leave Days — reduces your service period
Every day of unpaid absence is subtracted before the calculation runs.
On AED 5,000, each unpaid day costs you:
| Band | Cost per day |
|---|---|
| Years 1–5 (21-day band) | AED 9.59 |
| Year 6+ (30-day band) | AED 13.70 |
| Unpaid leave taken | Reduction (years 1–5) |
|---|---|
| 30 days | AED 288 |
| 60 days | AED 575 |
| 90 days | AED 863 |
Paid annual leave and sick leave are not deducted — only unpaid absence.
Notice Pay Deduction — reduces the pay out, not the entitlement
If you leave without serving your full notice, your employer may deduct payment in lieu.
AED 5,000, 5 years, one month notice not served:
| Line | Amount |
|---|---|
| Gratuity entitlement | AED 17,500 |
| Notice pay deduction | − AED 5,000 |
| Reaching your account | AED 12,500 |
Your gratuity is unchanged. The settlement is smaller.
The two-year cap — applied automatically
Total gratuity cannot exceed two years’ basic salary. On AED 5,000 that ceiling is AED 120,000.
| Service | Calculated | Paid |
|---|---|---|
| 25 years | AED 117,500 | AED 117,500 |
| 25.5 years | AED 120,000 | AED 120,000 |
| 30 years | AED 142,500 | AED 120,000 |
Below 25½ years the cap never touches you.
Part Years on AED 5000
Nothing is rounded down. Months count in proportion.
| Service | Gratuity |
|---|---|
| 1 year 6 months | AED 5,250 |
| 2 years 3 months | AED 7,875 |
| 3 years 6 months | AED 12,250 |
| 4 years 8 months | AED 16,333 |
| 5 years 6 months | AED 20,000 |
| 7 years 4 months | AED 29,167 |
Under one year pays nothing. Eleven months of service earns no gratuity at all. If your first anniversary is close, that is worth knowing before you resign.
If You Work in DIFC or ADGM
None of the figures on this page apply to you.
DIFC replaced gratuity with DEWS in 2020 — your employer pays 5.83% of basic salary monthly for the first five years and 8.33% after that, and you receive the accumulated fund rather than a calculated lump sum.
ADGM operates its own regulations and permits approved savings schemes.
Every other free zone — JAFZA, DMCC, DAFZA, Dubai South — uses the standard calculation above.
When You Should Be Paid
Within 14 days of your contract ending, under Article 53.
Your gratuity is one line in the settlement, alongside unpaid salary, leave encashment, notice pay and any repatriation ticket your contract provides for. Ask for the itemised breakdown before signing.
Run Your Own Numbers
Every figure here assumes a clean AED 5,000 basic with no unpaid leave and no deductions.
Enter your actual dates in the UAE Gratuity Calculator to see a year-by-year breakdown you can download and take to HR.
FAQs
How much gratuity on AED 5,000 after 5 years?
AED 17,500.
How much after 2 years?
AED 7,000.
How much after 10 years?
AED 42,500.
Does resigning reduce it?
No. Resignation and termination pay the same under the current law.
What if AED 5,000 is my total package?
Your gratuity is built on the basic portion only. If basic is AED 3,000, five years pays AED 10,500 instead of AED 17,500.
Do I get anything under one year?
No.
Is there a maximum?
AED 120,000, reached at about 25½ years of service.
How much does unpaid leave cost me?
About AED 9.59 per day in your first five years, and AED 13.70 per day after that.
Does contract type matter?
Not under the current law. It only mattered under the repealed 1980 law.
Is gratuity taxable in the UAE?
No.
Working with a different basic salary? See our AED 6,000 breakdown.
Last updated: August 2026
Based on: UAE Federal Decree-Law No. 33 of 2021, Articles 51 and 53
Written by Farhan — About
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