AED 25000 Salary Gratuity in UAE (2026): Statutory Rate or Enhanced?

Your AED 25000 salary gratuity is AED 87,500 after five years and AED 212,500 after ten — at the statutory rate.
But Article 51 sets a minimum, not a fixed entitlement. At senior salary levels, a meaningful number of contracts provide more than the statutory 21 and 30 days — and because the amounts here are large, the difference runs into six figures over a career.
Most people never check. This guide shows you both figures and where to look.

Quick Answer — Statutory Rate

Daily wage: AED 25,000 ÷ 30 = AED 833.33

Each of your first five years adds AED 17,500. From year six, each adds AED 25,000.

Article 51 Is a Floor, Not a Ceiling

The statutory entitlement is 21 days of basic wage per year for your first five years and 30 days thereafter. An employer cannot pay less than that.

They can, however, agree to pay more — and more favourable terms written into your contract are enforceable.

The most common enhancement is 30 days per year from year one, removing the lower band entirely.

AED 37,500 apart at ten years. The gap is largest early on, because the enhancement removes the 21-day band that only applies to your first five years.

Where to look

Check your employment contract and any offer letter annexure for wording around end-of-service benefits. You’re looking for anything that specifies a number of days per year, or a formula that differs from Article 51.

Also check your company handbook or HR policy document. Enhanced terms are sometimes set at policy level rather than in individual contracts, and if the policy has been consistently applied it carries weight.

If you find nothing, the statutory rate applies. Worth two minutes to confirm rather than assume.

The Cap at This Salary

Total gratuity cannot exceed two years’ basic salary — AED 600,000 on AED 25,000 basic.

At the statutory rate you’d reach that at around 25½ years of service. Under an enhanced 30-day arrangement you’d reach it at 24 years.

Below roughly 24 years, the cap never affects you.

Is AED 25,000 Your Basic?

At senior level this is worth checking carefully, because the absolute amounts are so large.

If your package is AED 25,000 with AED 14,000 basic and the rest in housing, transport and other allowances, ten years pays AED 119,000, not AED 212,500.

A difference of AED 93,500 on the same decade of work.

Find the line in your MOHRE labour contract that says “basic salary.” Our AED 10,000 breakdown explains how the split works and why employers structure packages this way.

Part Years Count in Proportion

At this salary each month in the 30-day band is worth roughly AED 2,083. Rounding a part year down is expensive — check the service dates on your settlement statement.

DIFC, ADGM and the Savings Scheme

At this level a lot of employment sits outside standard mainland arrangements.

DIFC — DEWS. Contributions of 5.83% of basic salary monthly for your first five years, then 8.33%. On AED 25,000 that’s AED 1,457.50 a month rising to AED 2,082.50. You receive contributions plus investment returns, with no cap.

ADGM operates its own regulations and permits approved savings schemes.

The mainland savings scheme. Under Cabinet Resolution No. 96 of 2023, mainland employers can opt into a MOHRE-approved scheme. Accrued gratuity is frozen at the join date and everything after is monthly contributions.

Two things that matter at this salary: the two-year cap doesn’t apply to DEWS or savings scheme balances, and those funds sit outside your employer’s balance sheet. On a six-figure entitlement, that second point is not trivial. Our AED 15,000 breakdown compares the three systems in more detail.

What Reduces the Payout

Unpaid leave. Each unpaid day costs AED 47.95 in years one to five, and AED 68.49 after that. A month of unpaid leave past year five is over AED 2,000. Full breakdown here.

Notice you don’t serve. Senior notice periods are often three months — AED 75,000 at this salary. That’s more than four years of statutory accrual.

Wrong start date. Renewals don’t reset your service.

Resigning Doesn’t Reduce It

The repealed 1980 law cut gratuity for early resignation. That stopped applying in February 2022. Resignation and termination now pay identically, and contract type makes no difference.

When You Should Be Paid

Within 14 days, under Article 53.

At this level the settlement usually includes several other lines — leave encashment, notice pay, unpaid bonus or commission, and a repatriation ticket. Ask for the whole thing itemised, and don’t sign a release before you’ve reconciled every line.

Check Your Own Figure

Enter your basic salary and dates in the UAE Gratuity Calculator, then compare the result against your contract terms. If your contract provides an enhanced rate, the calculator’s statutory figure is your floor, not your entitlement.

[Calculate My Gratuity]

FAQs

How much gratuity on AED 25,000 after 5 years?

AED 87,500 at the statutory rate.

After 10 years?

AED 212,500.

Can my contract give me more than the statutory rate?

Yes. Article 51 is a minimum, and more favourable contractual terms are enforceable. A common enhancement is 30 days per year from year one.

Where do I check for enhanced terms?

Your employment contract, any offer letter annexure, and your company handbook or HR policy document.

What is the maximum gratuity on this salary?

AED 600,000 — two years’ basic salary — reached at around 25½ years at the statutory rate.

What if AED 25,000 is my package?

Gratuity runs on the basic portion only. On AED 14,000 basic, ten years pays AED 119,000.

Does the cap apply to DEWS?

No. DEWS and savings scheme balances aren’t subject to the two-year cap.

Does resigning reduce it?

No.

Last updated: August 2026 · Based on: Federal Decree-Law No. 33 of 2021, Articles 51 and 53 · Cabinet Resolution No. 96 of 2023
Written by Farhan — About
Different basic salary? See AED 15,000 and AED 20,000.