AED 12000 Salary Gratuity in UAE (2026): What Your Notice Period Is Really Worth
Your AED 12000 salary gratuity is AED 42,000 after five years and AED 102,000 after ten.
But at this salary level there’s a second number that usually matters more, and almost nobody calculates it: your notice period. On AED 12,000 basic with a three-month notice, that’s AED 36,000 sitting on the table — considerably more than most people gain by timing their exit around gratuity.
This guide covers both.
Quick Answer
Daily wage: AED 12,000 ÷ 30 = AED 400
| Years of service | Gratuity |
|---|---|
| 1 year | AED 8,400 |
| 2 years | AED 16,800 |
| 3 years | AED 25,200 |
| 4 years | AED 33,600 |
| 5 years | AED 42,000 |
| 6 years | AED 54,000 |
| 7 years | AED 66,000 |
| 8 years | AED 78,000 |
| 10 years | AED 102,000 |
| 15 years | AED 162,000 |
| 20 years | AED 222,000 |
Each of your first five years adds AED 8,400. From year six, each adds AED 12,000.
Resigning doesn’t reduce any of these figures.
Your Notice Period Is Worth More Than Your Timing
At AED 12,000 basic, a three-month notice period is worth AED 36,000 in salary. Here’s how the three scenarios play out.
You serve your full notice
Your notice period counts as service. Enter the final day of notice as your last working day, not the day you handed in your resignation. Three months at this salary adds roughly AED 2,100 to your gratuity if you’re in the 21-day band, or AED 3,000 if you’re past year five. You also receive your normal salary throughout.
Your employer waives it and pays you in lieu
Your service ends on the date you actually stop working, but you receive the notice pay as a separate settlement line — AED 36,000 for three months.
You lose the small gratuity accrual, gain the pay, and start your new job three months earlier. Usually the best outcome.
You leave without serving it
Your employer may lawfully deduct payment in lieu from your settlement. That’s AED 36,000 off on a three-month notice.
To put that in perspective: waiting six months to cross the five-year mark adds about AED 4,200 to your gratuity. Walking out of a three-month notice costs AED 36,000. The notice period is roughly nine times more consequential than the gratuity timing.
Check your contract for the notice period length before you plan anything else.
Part Years Count in Proportion
| Service | Gratuity |
|---|---|
| 1 year 6 months | AED 12,600 |
| 2 years 3 months | AED 18,900 |
| 3 years 9 months | AED 31,500 |
| 4 years 8 months | AED 39,200 |
| 5 years 6 months | AED 48,000 |
| 7 years 4 months | AED 70,000 |
Below twelve months, nothing is payable.
Is AED 12,000 Your Basic or Your Package?
Everything above assumes AED 12,000 is your basic salary.
If it’s your total package with AED 7,000 basic and AED 5,000 in allowances, five years pays AED 24,500, not AED 42,000.
Find the line in your MOHRE labour contract that says “basic salary.” Housing, transport, commission and overtime are all excluded. Our AED 10,000 breakdown covers the package split in more detail.
Note this affects your notice pay too. Payment in lieu of notice is normally calculated on the full package rather than basic alone, so check your contract wording — the two figures can differ significantly.
What Else Reduces the Payout
Unpaid leave. Each unpaid day costs AED 23.01 in years one to five, and AED 32.88 after that.
The ceiling. Total gratuity can’t exceed two years’ basic salary — AED 288,000 here, reached at about 25½ years.
Contract renewals don’t reduce anything — but employers sometimes count from the wrong date. Renewals don’t reset your service, so check which date they used.
Resigning Costs You Nothing
Under the repealed Federal Law No. 8 of 1980, resigning early did cut your gratuity. That stopped applying in February 2022.
Under Federal Decree-Law No. 33 of 2021, resignation and termination pay identically. Contract type makes no difference either.
At seven years on AED 12,000 basic, you receive AED 66,000 either way.
DIFC and ADGM
DIFC replaced gratuity with DEWS in 2020 — 5.83% of basic salary monthly for the first five years, 8.33% after. You receive the fund, not a calculated figure.
ADGM runs its own approved savings schemes.
JAFZA, DMCC, DAFZA, Dubai South and the other free zones use the standard calculation above.
When You Should Be Paid
Within 14 days of your contract ending, under Article 53. Your gratuity, notice pay, leave encashment and any repatriation ticket all form part of the same settlement. Ask for it itemised.
Run Both Numbers
Enter your basic salary and both possible exit dates in the UAE Gratuity Calculator, then compare that difference against your notice period value. That comparison is the actual decision.
FAQs
How much gratuity on AED 12,000 after 5 years?
AED 42,000.
After 2 years?
AED 16,800.
After 10 years?
AED 102,000.
Does my notice period count towards my gratuity?
Yes, if you serve it. Enter the final day of notice as your last working day.
What if I leave without serving notice?
Your employer may deduct payment in lieu — AED 36,000 on a three-month notice at this salary.
What if my employer waives the notice?
Your service ends on your actual last day, and the notice pay is a separate settlement line.
Does resigning reduce it?
No.
Is there a maximum?
AED 288,000, reached at about 25½ years.
What if AED 12,000 is my package?
Gratuity runs on the basic portion only. On AED 7,000 basic, five years pays AED 24,500.
Last updated: August 2026 · Based on: Federal Decree-Law No. 33 of 2021, Articles 51 and 53
Written by Farhan — About
Different basic salary? See AED 8,000, AED 10,000 and AED 15,000.
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