Does Probation Count Towards Gratuity in the UAE?

Yes — once you successfully complete your probation period and continue with the same employer, the probation period counts towards your total service duration for gratuity purposes. However, if your employment ends during probation, you receive no gratuity at all.

This is one of the most commonly misunderstood aspects of UAE labour law. Many employees assume probation is excluded from gratuity — it is not, provided you pass it.

What the Law Says

Under Federal Decree-Law No. 33 of 2021, gratuity is based on your total continuous service period with the same employer. The law does not exclude the probation period from this calculation. Your service begins on your official joining date, and as long as you complete probation successfully, those months count in full.

The only condition: you must complete at least one full year of total service (including probation) to be entitled to any gratuity.

UAE Probation Period Rules (2021 Law)

• Maximum probation period: 6 months from joining date
• Cannot be extended beyond 6 months in total
• Either party can terminate during probation with 14 days’ written notice
• If terminated during probation: zero gratuity
• If you complete probation and continue: probation months count toward total service

Worked Example 1: Probation Completed

Sara joins on 1 January 2023. Her probation is 3 months (ends 31 March 2023). She resigns on 1 January 2026.

• Total service: 3 years (from 1 January 2023)
• Probation: 3 months — counted in full
• Gratuity is calculated on the full 3 years

If her basic salary is AED 9,000:
(9,000 ÷ 30) × 21 × 3 = AED 18,900

Worked Example 2: Terminated During Probation

James joins on 1 March 2025 on a 6-month probation. His employer terminates him on 15 July 2025 (4.5 months in, still in probation).

• Service: less than 1 year, and terminated during probation
• Gratuity: AED 0
• He is owed only salary for days worked and any accrued leave

Worked Example 3: Resign Shortly After Probation

Ahmed joins on 1 June 2024 with a 6-month probation. He resigns on 1 August 2025 (14 months total service, 8 months post-probation).

• Total service: 14 months — passes the 1-year minimum
• Gratuity calculated on full 14 months (1.17 years)

If basic salary is AED 7,000:
(7,000 ÷ 30) × 21 × 1.17 = approximately AED 5,733

What If There Was No Probation in the Contract?

If your employment contract does not mention a probation period, then legally no probation exists. Your gratuity counts from your first day of employment, and there is no risk of losing entitlements during an initial period. This is actually a better position for the employee.

Can Your Employer Extend the Probation Period?

Under the 2021 law, the maximum probation period is 6 months in total. An employer cannot extend it beyond this, even with your agreement. Any extension that pushes probation beyond 6 months from your joining date is not legally valid. If your employer tried to extend your probation beyond 6 months and then terminated you “during probation”, this may be unlawful dismissal — contact MOHRE on 800 60.

Common Mistakes Employees Make

Mistake 1: Calculating gratuity from the probation end date
Employees sometimes subtract their probation months from their total service when using a calculator. This is wrong — your start date for gratuity is your joining date, not the date probation ended.

Mistake 2: Accepting a verbal probation extension
Any extension must be in writing. A verbal extension is not binding, and if you were terminated based on it, you may have grounds for a complaint.

Mistake 3: Assuming no gratuity if you leave just after probation
As long as you have completed one full year of total service (including probation), you are entitled to gratuity. Even 13 months of total service qualifies.

How to Calculate Your Gratuity Correctly

Use our free UAE Gratuity Calculator and enter your actual joining date as the start of service — not your probation completion date. The calculator will compute your full entitlement based on total continuous service.

Frequently Asked Questions

Does probation count towards the one-year minimum for gratuity?
Yes. If you join in January, your 3-month probation ends in April, and you resign in December of the same year, your total service is 11 months — still under one year, so no gratuity. But if you stay until the following January, you have exactly 1 year and are entitled to gratuity for all 12 months.

My employer says my gratuity only starts after probation. Is that correct?
No. This is a common — and incorrect — claim. Under Federal Decree-Law No. 33 of 2021, total service begins on your joining date. If your employer is calculating from probation end date, they may be underpaying you. File a complaint with MOHRE if needed.

Can I resign during probation and still get gratuity?
No. If you resign or are terminated during the probation period and have less than one year of total service, no gratuity is payable. Gratuity requires at least one full year of completed service.

All information is based on Federal Decree-Law No. 33 of 2021. For complex employment situations, contact MOHRE on 800 60 or consult a qualified UAE employment lawyer.