AED 7000 Salary Gratuity in UAE (2026): How to Check If Your Employer’s Figure Is Right
Most people land on this page after HR has already handed them a number — and something about it feels low.
Your AED 7000 salary gratuity should come to AED 24,500 after five years and AED 59,500 after ten. The full table is below, followed by something you won’t find elsewhere: how to work backwards from whatever your employer offered and identify exactly what they got wrong.
Your Correct Figure, Year by Year
Daily wage: AED 7,000 ÷ 30 = AED 233.33
| Years of service | Gratuity |
|---|---|
| 1 year | AED 4,900 |
| 2 years | AED 9,800 |
| 3 years | AED 14,700 |
| 4 years | AED 19,600 |
| 5 years | AED 24,500 |
| 6 years | AED 31,500 |
| 7 years | AED 38,500 |
| 8 years | AED 45,500 |
| 10 years | AED 59,500 |
| 15 years | AED 94,500 |
| 20 years | AED 129,500 |
Each of your first five years is worth AED 4,900. Every year after that is worth AED 7,000.
If your employer’s number matches, you can stop here. If it doesn’t, the next section will tell you why.
Work Backwards From the Number They Gave You
Take an employee with five years of service on an AED 7,000 basic salary. The correct figure is AED 24,500. Here is what the common wrong answers look like, and what produced each one:
| If HR said | What they did | Correct? |
|---|---|---|
| AED 42,000 | Used a AED 12,000 total package instead of the AED 7,000 basic | No |
| AED 35,000 | Applied 30 days to all five years | No |
| AED 16,333 | Applied the repealed two-thirds resignation cut | No |
| AED 9,800 | Counted from your latest contract renewal, not your original start | No |
| AED 8,167 | Applied the repealed one-third resignation cut | No |
| AED 24,500 | Applied Article 51 correctly | Yes |
Find your number in that table and you already know which conversation to have with HR.
The Six Reasons an AED 7000 Salary Gratuity Comes Out Wrong
1. They used your package instead of your basic
Gratuity runs on basic salary alone. If your AED 7,000 is a total package with AED 4,000 basic, five years pays AED 14,000, not AED 24,500.
Check this: find the line in your MOHRE labour contract that says “basic salary.” Housing, transport, commission and overtime are all excluded. Where an offer letter and the registered contract disagree, the registered contract governs.
If this is your situation, our AED 6,000 breakdown walks through the package-versus-basic split in more detail.
2. They counted from your contract renewal
Renewals do not reset your service. An employee on their third two-year contract has six years, not two.
| Start date used | Service | Gratuity |
|---|---|---|
| Original joining date | 6 years | AED 31,500 |
| Latest renewal date | 2 years | AED 9,800 |
AED 21,700 of difference on identical employment.
Check this: ask which date they used. If it isn’t your original first working day, that is your answer.
Renewals don’t reset your service — here’s how to prove your original start date.
3. They cut it because you resigned
Under the repealed Federal Law No. 8 of 1980, resigning early did reduce your gratuity — to one third between one and three years, and two thirds between three and five.
That law ceased to apply in February 2022. Under Federal Decree-Law No. 33 of 2021, resignation and termination pay identically. Five years on AED 7,000 is AED 24,500 either way.
Check this: ask which provision they relied on. There isn’t one.
4. They rounded your part year down
Months count in proportion once your first year is complete.
| Service | Gratuity |
|---|---|
| 1 year 6 months | AED 7,350 |
| 2 years 3 months | AED 11,025 |
| 3 years 6 months | AED 17,150 |
| 4 years 8 months | AED 22,867 |
| 5 years 6 months | AED 28,000 |
| 7 years 4 months | AED 40,833 |
Rounding four years and eight months down to four costs you AED 3,267.
5. They applied the wrong band
The 30-day rate begins at year six. It does not apply retroactively.
Eight years is not 8 × 30 days. It is (21 × 5) + (30 × 3) = 195 days = AED 45,500. Applying 30 days across all eight gives AED 56,000 — a figure some calculators still produce, and one your employer will not pay.
6. Deductions were applied without being shown
Unpaid leave, notice pay in lieu, outstanding loans and unreturned company assets can all lawfully reduce your settlement. You are entitled to see each one itemised.
On AED 7,000, unpaid leave costs roughly AED 13.42 per day during your first five years and AED 19.18 per day after that. A month of unpaid leave works out to about AED 403.
Check this: if the figure is short and none of the five reasons above explain it, ask for the deductions line by line.
What If Your Basic Salary Changed During Employment?
This one catches people out and almost nobody addresses it.
Your last basic salary is the one that applies — to your entire service period.
If you joined on AED 4,000 basic and were raised to AED 7,000 in your final year, all five years are calculated at AED 7,000. Not averaged, and not split by period.
| Basis used | Five-year gratuity |
|---|---|
| Last basic salary (AED 7,000) | AED 24,500 |
| Averaged across the period | AED 19,250 |
| Starting basic (AED 4,000) | AED 14,000 |
Only the first is correct. If your employer has averaged or used your starting salary, that is a straightforward error to raise.
The reverse also holds: if your basic was reduced before you left, the lower figure applies. Where a reduction happened shortly before an exit, it is worth checking whether you agreed to it in writing.
What to Do If the Number Is Wrong
Ask for it in writing first
Request an itemised final settlement statement showing four things: the basic salary used, your service start and end dates, the days applied in each band, and every deduction.
Most disputes end here. Once someone has to write the calculation down, the error tends to become obvious to them too.
Put your own figure in writing
Reply with your calculation and the provisions behind it — Article 51 for the accrual, Article 53 for the fourteen-day payment deadline. Keep the email thread.
File a MOHRE complaint if they won’t move
Lodge a labour complaint through the Ministry of Human Resources and Emiratisation — call centre, smart app or service centres. MOHRE will attempt conciliation, and refers unresolved cases to the labour court. Labour claims are generally exempt from court fees at the initial stages.
Free zone employees file with their free zone authority instead. DIFC and ADGM have their own employment tribunals. Documents to have ready: employment contract and all renewals, offer letter, recent payslips, Emirates ID, visa page, resignation or termination letter, labour card, and the settlement statement.
Don’t sign before you’re satisfied
A signed release is considerably harder to reopen. No deadline justifies signing a figure you cannot reconcile.
When You Should Be Paid
Within 14 days of your contract ending, under Article 53. Past that without lawful reason, you have grounds to raise it formally.
Your gratuity is one line in a larger settlement, alongside unpaid salary, leave encashment, notice pay and any repatriation ticket your contract provides for. Ask for the whole thing itemised, not just the gratuity.
The Ceiling on This Salary
Total gratuity cannot exceed two years’ basic salary — AED 168,000 on AED 7,000, reached at around 25½ years of service. Below that, the cap never applies to you.
If You Work in DIFC or ADGM
None of the figures above apply.
DIFC replaced gratuity with DEWS in 2020 — your employer contributes 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.
JAFZA, DMCC, DAFZA, Dubai South and the other free zones use the standard calculation on this page.
Check Your Own Number Before the Meeting
Enter your actual joining date, last working day and basic salary in the UAE Gratuity Calculator. You will get a year-by-year breakdown you can print and put on the table.
Walking into a settlement meeting with a written calculation changes the conversation. Walking in with a feeling does not.
FAQs
How much gratuity on AED 7,000 after 5 years?
AED 24,500 — 105 days of basic wage at AED 233.33 per day.
How much after 2 years?
AED 9,800.
How much after 10 years?
AED 59,500.
My employer paid less than this. What should I do?
Ask for the itemised calculation in writing showing the basic salary and service dates used. Six things commonly go wrong — the section above will tell you which one applies to your figure.
Can my employer reduce my gratuity because I resigned?
No. That rule was repealed in February 2022. Resignation and termination pay the same.
Can they count my service from my contract renewal date?
No. Renewals are continuous service from your original joining date.
My salary increased last year. Which figure is used?
Your last basic salary, applied to your entire service period. Not an average.
What if AED 7,000 is my total package rather than my basic?
Your gratuity runs on the basic portion only. On AED 4,000 basic, five years pays AED 14,000 instead of AED 24,500.
How long does my employer have to pay?
Fourteen days from the end of your contract, under Article 53.
Where do I file a complaint?
MOHRE, for mainland employment. Free zone employees file with their free zone authority.
Is gratuity taxable in the UAE?
No. There is no personal income tax on employment income.
Last updated: August 2026
Based on: UAE Federal Decree-Law No. 33 of 2021, Articles 51 and 53
Written by Farhan — About
Working with a different basic salary? See our breakdowns for AED 5,000 and AED 6,000 and AED 8,000.
