Is Abu Dhabi gratuity different?
For private-sector employees, no — gratuity is federal, so an Abu Dhabi job uses exactly the same rule as Dubai or Sharjah: 21 days' basic pay per year for the first five years, 30 days'per year thereafter, capped at two years' pay, on service of at least one year.
The real Abu Dhabi distinction is for UAE and GCC nationals: they do not accrue gratuity at all. Instead their employer contributes to a pension through the General Pension and Social Security Authority (GPSSA) and the Abu Dhabi Pension Fund. This calculator is therefore for expatriate employees, who are the ones the gratuity system covers.
How the figure is built
Gratuity is calculated on basic salary only — allowances are excluded — with a daily wage of basic ÷ 30. On a basic of AED 12,000 across six years, that is five years at 21 days plus one year at 30 days: (5 × 21 + 30) × AED 400 = AED 54,000.
Employing staff in Abu Dhabi?
If you run a business in Abu Dhabi, gratuity is an accruing liability you should be provisioning for, and nationals' pension contributions are a separate obligation with real penalties for getting them wrong. Our PRO and payroll team keeps both correct, and if you are setting up in the emirate we handle the licence too. For a full leaver's figure, use the end-of-service settlement calculator.
Applies the standard MOHRE formula for full-time private-sector expatriate employees as at July 2026. Your exact entitlement depends on your contract and circumstances — a figure to confirm, not legal advice.
