AED 2,500 Salary Gratuity in UAE (2026): Why Month Twelve Decides Everything

Your AED 2500 salary gratuity is AED 1,750 after one year and AED 8,750 after five.
But at this salary level, the number that matters most isn’t in that table. It’s this: leaving at eleven months pays you nothing at all. One month later, it pays AED 1,750 — roughly three weeks of your salary.
If you’re on a lower wage in the UAE, you’re statistically more likely to change employers within your first two years, which makes that twelve-month line the single most valuable thing to know about your gratuity.

Quick Answer

Daily wage: AED 2,500 ÷ 30 = AED 83.33

Each of your first five years adds AED 1,750. From year six, each year adds AED 2,500.

Resigning doesn’t reduce any of these figures.

The Twelve-Month Line

There is no partial gratuity in your first year. None. Eleven months and twenty-nine days earns exactly the same as one day: nothing.

AED 1,750 for one extra month of work. At AED 2,500 a month, that’s about three weeks of pay for thirty days of employment.

If you’re thinking of leaving and you’re anywhere close to your first anniversary, work out the date before you hand in your notice. And remember your notice period counts towards your service — if you’re at ten months with a thirty-day notice, serving it takes you to eleven, not twelve.

Count from your original first working day, not from your latest contract. Renewals don’t reset your service.

After Year One, Every Month Counts

Once you’re past twelve months, nothing is rounded down. Months are paid in proportion.

At this salary each extra month in your first five years is worth about AED 146, rising to AED 208 after year five.

Small amounts individually. But if your employer rounds four years and eight months down to four, that’s AED 1,167 gone — most of a month’s salary.

Is AED 2,500 Your Basic Salary?

At this level it usually is, or close to it. Lower-wage packages in the UAE tend to have a high basic and small allowances, which actually works in your favour for gratuity.

But check anyway. If your contract shows AED 2,500 total with AED 1,800 basic and AED 700 in housing and transport, your five-year figure is AED 6,300, not AED 8,750.

Find the line in your MOHRE labour contract that says “basic salary.” Housing, transport, overtime and any food allowance are all excluded from the calculation.

Note on accommodation and transport provided in kind. If your employer houses you or provides transport rather than paying an allowance, that has no cash value in the calculation either. Your gratuity runs on the contractual basic figure only.

If You’re a Domestic Worker

Domestic workers — housemaids, drivers, cooks, nannies and household staff — fall under the Domestic Workers Law, not the main Labour Law.

The entitlement is broadly similar: end-of-service benefits after one year of continuous service. But the governing rules and the complaint route differ, so if this is your situation, check the terms in your specific contract rather than assuming the mainland calculation applies exactly.

What Can Reduce the Amount

Unpaid leave. Days of unpaid absence come out of your service before the calculation runs. On AED 2,500 each unpaid day costs about AED 4.79 in your first five years. Thirty days of unpaid leave is roughly AED 144. Here’s how unpaid leave affects gratuity in full.

Notice you don’t serve. Your employer may deduct payment in lieu — a full month at this salary is AED 2,500, which is more than a year and a half of gratuity accrual. Serving your notice is almost always the better decision at this salary level.

Dismissal for gross misconduct under Article 44 can forfeit it entirely, but that requires a specific documented reason.

Resigning Doesn’t Reduce It

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, and contract type makes no difference.

At three years on AED 2,500 basic, you receive AED 5,250 whether you resigned or were let go. If someone tells you that you’ll lose a third of it for quitting, that’s the old law.

When You Should Be Paid

Within 14 days of your contract ending, under Article 53.

Your gratuity forms part of a wider settlement alongside unpaid salary, leave encashment, notice pay and a repatriation ticket where your contract provides one.

If your employer won’t pay, you can file a labour complaint with MOHRE through their call centre, smart app or service centres. It’s free, and labour claims are generally exempt from court fees at the initial stages. Keep your contract, Emirates ID, payslips and any bank statements showing salary transfers.

Small amounts are still statutory entitlements. AED 1,750 is worth claiming.

Check Your Own Dates

Enter your original joining date, your intended last working day and your basic salary in the UAE Gratuity Calculator. If you’re near your first anniversary, run two dates and compare.

[Calculate My Gratuity]

FAQs

How much gratuity on AED 2,500 after 1 year?

AED 1,750 — 21 days of basic wage at AED 83.33 per day.

After 3 years?

AED 5,250.

After 5 years?

AED 8,750.

What if I leave at 11 months?

Nothing is payable. There is no partial entitlement in your first year.

Does my notice period count towards the twelve months?

Yes. Your service runs to the final day of your notice period.

Does resigning reduce it?

No. Resignation and termination pay the same.

Do part years count after the first year?

Yes, in proportion. Four years and eight months is not four years.

What if AED 2,500 is my total package?

Gratuity runs on the basic portion only. On AED 1,800 basic, five years pays AED 6,300.

Is gratuity taxable in the UAE?

No.

Last updated: August 2026 · Based on: Federal Decree-Law No. 33 of 2021, Articles 44, 51 and 53
Written by Farhan — About
Different basic salary? See AED 5,000 and AED 8,000.