ADGM Gratuity Calculator UAE 2026
A simple guide to end-of-service benefits in the Abu Dhabi Global Market.
If you work in the Abu Dhabi Global Market, also called ADGM, your gratuity does not follow the usual UAE rules. ADGM has its own employment law, and the rules are a bit different from what most people in the UAE know.
In this guide, we will explain how ADGM gratuity works in simple language. We will show you the formula, run through real examples, and answer the most frequently asked questions.
What is ADGM?
ADGM is a financial free zone in Abu Dhabi, located on Al Maryah Island and home to many international banks, law firms, and finance companies.
Most companies in the UAE follow the Federal Labour Law, which is managed by MOHRE. But ADGM is different. It runs its own legal system, based on English common law, so it does not follow MOHRE rules at all.
Instead, ADGM companies follow the ADGM Employment Regulations 2024, effective from 1 April 2025. They were written to match international finance-hub standards, similar to what you might have seen in London or Singapore.
MOHRE has no say over ADGM employees. If you have a gratuity problem at an ADGM company, you go to the ADGM Employment Appeals Tribunal, not MOHRE.
ADGM vs Mainland UAE: quick comparison
| What we are comparing | ADGM | Mainland UAE |
|---|---|---|
| Applicable law | ADGM Employment Regulations 2024 | Federal Decree-Law No. 33 of 2021 |
| How is the daily wage calculated? | Yearly basic ÷ 365 | Monthly basic ÷ 30 |
| Minimum basic wage | Must be 50% of total pay | No rule on this |
| Gratuity cap | None | Capped at 2 years’ salary |
| Fired for cause | Still get gratuity (after 1 year) | May lose gratuity under Article 120 |
| Resigned | Same gratuity rate | Often a reduced rate |
| Where to file a dispute? | ADGM Employment Appeals Tribunal | MOHRE or UAE Labour Courts |
| Annual flight ticket | Employer must provide annually | Not required by law |
Who is eligible for ADGM gratuity?
The eligibility criteria for ADGM gratuity are as follows.
You qualify if
- You have worked for the same employer for at least one year.
- You hold a valid ADGM work permit, or you are a remote employee covered under the new rules.
- Your job has ended, whether you resigned or were let go.
- You were not fired for cause while still on probation.
You don’t qualify if
- You have less than one year of service.
- You were fired for cause while still on probation.
- You are a UAE or GCC national (covered by a state pension instead).
- You chose a company pension plan instead of gratuity.
- You are on a dual license with Abu Dhabi DED (you follow federal law instead).
How is ADGM gratuity calculated?
The standard calculation formula is very simple.
Three things make this different from normal UAE rules:
- ADGM divides your yearly basic wage by 365 days, whereas Mainland UAE divides your monthly wage by 30 days. The end result is close, but not exactly the same.
- Your basic wage must be at least half of your total pay. If your employer pays you mostly through allowances, ADGM still uses the 50 percent figure for your gratuity, not your actual basic salary.
- There is no cap. In Mainland UAE, gratuity stops growing after two years of total salary. In ADGM, it keeps growing for as long as you work there.
Worked examples
Example 1: 3 years of service
Assume your basic salary is AED 18,000 a month.
| Values | Working | Amount |
|---|---|---|
| Monthly basic wage | — | AED 18,000 |
| Yearly basic wage | AED 18,000 × 12 | AED 216,000 |
| Daily rate | 216,000 ÷ 365 | AED 591.78 |
| Gratuity days | 21 × 3 years | 63 days |
| Total gratuity | — | AED 37,282 |
Example 2: 7 years of service
Now assume your basic salary is AED 25,000 a month, and you have worked there for 7 years.
| Values | Working | Amount |
|---|---|---|
| Yearly basic wage | AED 25,000 × 12 | AED 300,000 |
| Daily rate | 300,000 ÷ 365 | AED 821.92 |
| First 5 years | 821.92 × 21 × 5 | AED 86,301 |
| Years 6 and 7 | 821.92 × 30 × 2 | AED 49,315 |
| Total gratuity | — | AED 135,616 |
Example 3: the 50% rule
Assume you earn AED 30,000 a month in total, but your basic salary is only AED 10,000. That is just 33% of your pay. Since this is below the 50% line, ADGM uses AED 15,000 instead, not your real basic salary of AED 10,000.
| What your contract states | What gets used for your gratuity calculation |
|---|---|
| AED 10,000 basic (33% of total) | AED 15,000 (the 50% minimum) |
| AED 16,000 basic (53% of total) | AED 16,000 (your real basic, since it is over 50%) |
| AED 20,000 basic (67% of total) | AED 20,000 (your real basic) |
Notice periods in ADGM
Your notice period depends on the duration of your service.
| Time worked | Notice required |
|---|---|
| Under 3 months (probation) | 1 week |
| 3 months to 5 years | 1 month |
| 5 years or more | 3 months |
Annual leave and sick leave
Annual leave
- You get at least 20 working days of paid leave annually.
- Leave starts building up from your very first day.
- You can carry over up to 5 unused days into the next year.
- Public holidays do not count against your leave balance.
Sick leave
During probation, you can still take sick leave, but it will not be paid. Once you are past probation, here is how you are paid for your sick leave:
- First 10 working days: full pay.
- Next 20 working days: half pay.
- Final 30 working days: no pay.
Probation rules
- Probation can last up to six months.
- If your contract is shorter than six months, probation can only be half that length.
- Either side can end things during probation with one week’s notice.
- No sick pay during probation, though sick leave itself is allowed.
- No gratuity is granted if you are fired for cause during probation.
- You still get a flight ticket if let go during probation.
What happens when your job ends?
Once your employment ends, your employer has to do the following, all within 21 days:
- Pay you everything owed, including unused leave.
- Calculate and pay your gratuity.
- Cancel your work permit and visa, without making you sign anything away in the first place.
- Book you a flight ticket for your return home within 30 days, unless you find another job in the UAE.
- Give you a reference letter if you ask for one.
- Explain in writing why you were let go, if you ask.
What to do in case of a dispute with your employer
Since MOHRE has no power here, gratuity disputes in ADGM go through a different process:
- Start by writing to your employer. Explain clearly what you believe you are owed, and why.
- If that does not work, contact the ADGM Employment Affairs Office through the official ADGM website for guidance on filing a complaint.
- If it is still not resolved, you can take your case to the ADGM Employment Appeals Tribunal.
- For larger amounts, it is worth speaking to a lawyer who knows ADGM law specifically.
Conclusion
ADGM gives employees a fair deal when it comes to gratuity. There is no cap, your basic wage cannot be set artificially low, and you get paid even if you are fired for cause, as long as you have worked for a whole year.
If you remember nothing else, remember this: your gratuity is based on yearly basic wage divided by 365, not monthly salary divided by 30. Your basic wage should be at least half your total pay. And there is no limit on how much you can earn in gratuity over time.
Want to know your exact number? Use our ADGM Gratuity Calculator — just enter your salary and dates, and we will do the rest.
Frequently asked questions
Do remote workers get ADGM gratuity?
Yes, if you are working remotely from inside the UAE. The rules treat you the same as someone working from the office. If you work remotely from outside the UAE, your situation may be slightly different — in that case you are advised to check your contract.
Does my gratuity reset if I sign a new contract?
No. As long as you stay with the same employer, your years of service keep adding up. Signing a renewal does not start the clock over.
Will I be taxed on my gratuity?
No. Since there is no income tax in the UAE, you get the full amount. But if you live in or move to a country with income tax, you may need to declare it there. It is worth checking with a tax advisor in your home country.
Can my employer take money out of my gratuity?
Yes, but only for things you genuinely owe them, like a loan or a salary advance. They cannot make random deductions, and they cannot ask you to give up your rights in exchange for paying you.
I was fired for cause. Do I still get paid?
Yes, as long as you completed at least one year of service. This rule was changed in 2025 and is one of the biggest differences between ADGM and Mainland UAE rules.
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