It applies to full-time employees who complete at least one year of continuous service. The days of basic wage earned per year, the cap and the source law are in the table below.
Because the liability grows every month, prudent employers accrue it in the accounts rather than finding it at the exit. A large workforce can carry a significant gratuity provision.
The rule in figures
| Rule | Figure | Source |
|---|---|---|
| End-of-service gratuity for full-time employees with at least one year of continuous service, at 21 days' basic wage per year for the first five years, 30 days' basic wage per year after that, capped at two years' wage in total | 21 / 30 days | Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, Article 51 |
Last reviewed 14 Nov 2026. A summary, not tax or legal advice. Confirm your obligations with an adviser.
How Civova handles it
Civova accrues gratuity for every employee each month and produces the final settlement (gratuity, leave encashment and any notice pay) when someone leaves.