Not everyone leaves a job on a neat anniversary date. If your employment ends mid-year, you’re still entitled to gratuity for those partial months — calculated on a pro-rata basis under UAE Labou Law. Here’s How to Calculate Gratuity for Incomplete Years of Service in UAE.
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The Basic Rule: Pro-Rata for Incomplete Years
Under UAE Federal Decree-Law No. 33 of 2021, gratuity for any incomplete year of service is calculated proportionally based on the number of months worked in that year.
Partial year gratuity = (Months worked ÷ 12) × Annual gratuity entitlement
📋 Official source: MOHRE – UAE Labour Law
Worked Example: 6 Years and 9 Months
Basic salary: AED 10,000/month | Service: 6 years, 9 months
| Period | Calculation | Amount |
|---|---|---|
| First 5 years | (10,000 ÷ 30) × 21 × 5 | AED 35,000 |
| Year 6 (full) | (10,000 ÷ 30) × 30 × 1 | AED 10,000 |
| 9 months (partial) | (10,000 ÷ 30) × 30 × (9÷12) | AED 7,500 |
| Total | AED 52,500 |
What About Days Within a Partial Month?
UAE law calculates gratuity by completed months. If your last month is incomplete, most employers and courts calculate based on the number of days worked in that month divided by 30, then multiplied by the daily gratuity rate. Always check your contract for any specific terms.
Minimum Service Requirement
You must complete at least 1 full year of continuous service to qualify for any gratuity. Partial years within the first year do not attract pro-rata gratuity.
FAQs
I worked 1 year and 4 months — how is my gratuity calculated?
You get full gratuity for 1 year (21 days’ salary) plus pro-rata for the 4 months: (4 ÷ 12) × 21 days’ salary.
Does my probation period count toward service?
Yes. Probation counts as part of your continuous service period for gratuity purposes.
Calculate your exact entitlement including partial years using our free UAE Gratuity Calculator.