Legal Disclaimer: This guide provides general information about service years calculation for UAE gratuity as of November 2025. It is not legal advice. For disputes, consult MOHRE or a qualified employment lawyer.

Service Years Calculation UAE: How It Affects Your Gratuity (2025)

Accurate service years calculation is critical because your gratuity amount is directly proportional to service length. Every month counts. Under Article 51 of Federal Decree-Law No. 33 of 2021, service years are calculated from the end of probation to the last working day. Probation periods (up to 6 months) are excluded. Partial years must be prorated. Service gaps exceeding 30 days may break continuity. This guide shows you exactly how to count your qualifying service years and avoid the most common calculation errors.

The Basic Rule: What Counts as "Service Years"

Service years for gratuity = Continuous employment from post-probation start date to termination date

Core principles:

Step-by-Step: How to Calculate Your Service Years

Step 1: Identify Start Date (Post-Probation)

Your service start date for gratuity = Day after probation ends

Example 1:

• Contract start: 1 January 2020
• Probation: 6 months (ends 30 June 2020)
• Service starts: 1 July 2020

Example 2:

• Contract start: 15 March 2022
• Probation: 3 months (ends 14 June 2022)
• Service starts: 15 June 2022

No probation clause?

• If contract silent on probation, MOHRE assumes no probation
• Service starts from contract start date
• However, employer may argue standard 6-month probation; clarify in writing

Step 2: Identify End Date (Last Working Day)

Your service end date = Last day physically working

Typical scenarios:

Scenario A: Notice period served

• Resignation submitted: 1 October 2025
• Notice period: 30 days
• Last working day: 31 October 2025
• Service ends: 31 October 2025

Scenario B: Notice period waived

• Resignation submitted: 1 October 2025
• Employer waives notice (immediate release)
• Last working day: 1 October 2025
• Service ends: 1 October 2025

Scenario C: Termination with notice pay in lieu

• Termination date: 1 October 2025
• Employer pays 30 days notice in lieu (no work required)
• Last working day: 1 October 2025
• Service ends: 1 October 2025 (not 31 October)

Step 3: Calculate Total Days

Use online date calculator or manual count:

Total Days = End Date - Start Date + 1

Example:

• Start: 1 July 2020
• End: 31 December 2025
• Total: 1,979 days

Step 4: Convert to Years

Standard conversion:

Years = Total Days ÷ 365

Example:

• 1,979 days ÷ 365 = 5.42 years

Rounding: Do NOT round. Use exact decimal (partial years must be prorated).

Step 5: Apply to Gratuity Formula

Tiered calculation:

• First 5 years: Use 21 days per year
• Beyond 5 years: Use 30 days per year

Example (5.42 years):

Years 1-5: (Salary ÷ 30) × 21 × 5 = Amount A
Years 5-5.42: (Salary ÷ 30) × 30 × 0.42 = Amount B
Total: Amount A + Amount B

With AED 10,000 basic:

• Years 1-5: (10,000 ÷ 30) × 21 × 5 = AED 35,000
• Years 5-5.42: (10,000 ÷ 30) × 30 × 0.42 = AED 4,200
• Total: AED 39,200

Probation Period: The Most Misunderstood Rule

What Is Probation?

Legal definition:

• Trial period at employment start
• Maximum 6 months per Federal Decree-Law No. 33/2021
• Can be shorter (e.g., 3 months) or omitted
• Must be stated in contract
• Employee or employer can terminate during probation without penalty

Probation does NOT count toward gratuity service years.

Common Probation Mistakes

Mistake 1: Counting probation in service years
Impact: Overstates service by up to 6 months (≈ 4-6% overstatement for 10-year employee)

Mistake 2: Not checking contract for probation clause
Impact: May wrongly assume 6 months when it's 3 months, or assume none when it's 6 months

Mistake 3: Believing "probation doesn't apply to me"
Impact: Unless contract explicitly states no probation, MOHRE may enforce standard 6-month exclusion in disputes

How to Verify Your Probation

Step 1: Check employment contract under "Probation" or "Trial Period" section

Typical contract language:

• "Employee shall be subject to a probation period of 3 months..."
• "Trial period: 6 months from contract start date..."
• "No probation period applies" (rare but valid)

Step 2: Check offer letter or appointment letter

Step 3: If unclear, request written confirmation from HR

Probation and Minimum Eligibility

Remember: Gratuity requires ≥ 1 year of post-probation service.

Example:

• Contract start: 1 January 2023
• Probation: 6 months (ends 30 June 2023)
• Post-probation start: 1 July 2023
• Minimum eligibility date: 1 July 2024 (1 year post-probation)

If terminated 31 May 2024:

• Service: 11 months post-probation
• Gratuity: AED 0 (under 1 year minimum)

Partial Years: Every Month Counts

Partial years must be prorated. You cannot round down to complete years only.

Why Partial Years Matter

Example: 4 years vs. 4.5 years

• Basic salary: AED 8,000

4 years (ignoring 6 months):

• Gratuity: (8,000 ÷ 30) × 21 × 4 = AED 22,400

4.5 years (including 6 months):

• Gratuity: (8,000 ÷ 30) × 21 × 4.5 = AED 25,200

Difference: AED 2,800 (12.5% more)

6 months of service = significant gratuity value. Never ignore partial years.

How to Calculate Partial Years

Method 1: Months

Partial Year = Months ÷ 12

Examples:

• 3 months = 3 ÷ 12 = 0.25 years
• 8 months = 8 ÷ 12 = 0.67 years
• 10 months = 10 ÷ 12 = 0.83 years

Method 2: Days

Partial Year = Days ÷ 365

Example:

• 200 days = 200 ÷ 365 = 0.55 years

MOHRE standard: Either method acceptable; result should be similar.

Partial Years and Tiered Formula

Question: If I worked 5 years 3 months, how do I apply the tiered formula?

Answer:

• 5 years: Use 21 days per year
• 0.25 years (3 months): Use 30 days per year (it's beyond 5 years)

Calculation:

Years 1-5: (Salary ÷ 30) × 21 × 5
Years 5-5.25: (Salary ÷ 30) × 30 × 0.25
Total: Sum both

With AED 12,000 basic:

• Years 1-5: (12,000 ÷ 30) × 21 × 5 = AED 42,000
• 3 months: (12,000 ÷ 30) × 30 × 0.25 = AED 3,000
• Total: AED 45,000

Service Aggregation Across Multiple Contracts

When Service Periods Aggregate

UAE law: If you work for the same employer across multiple consecutive contracts, service typically aggregates (adds up) for gratuity purposes.

Conditions for aggregation:

1. Same employer (same company entity)
2. No service break > 30 days (or minimal gap)
3. No gratuity settlement between contracts

Example:

• Contract 1: 2019-2022 (3 years)
• Contract 2: 2022-2025 (3 years, renewed immediately)
• Total service: 6 years (not 3 + 3 separately)

When Service Does NOT Aggregate

Service resets (starts from 0) if:

• Gratuity was settled between contracts
• Gap exceeds 30 days without valid reason
• Different employer (even if related companies)
• Employee resigned and was rehired

Example:

• Contract 1: 2018-2021 (3 years, employer settles gratuity)
• Gap: 2 months
• Contract 2: 2021-2025 (4 years)
• Service for Contract 2: 4 years only (not 7 years)

How to Prove Service Aggregation

Documentation needed: ✅ Both employment contracts
✅ Proof of consecutive employment (no gap)
✅ Evidence gratuity was NOT settled for first contract
✅ Payslips showing continuous employment

If employer disputes:

• File MOHRE complaint
• Provide documentation
• MOHRE will investigate and rule

Special Cases

Case 1: Maternity Leave

Scenario: Employee takes 60-day maternity leave

Service impact:

• Maternity leave counts as continuous service
• No gap in service years
• Include full period in calculation

Example:

• Service: 2020-2025 (5 years)
• Includes 60 days maternity leave in 2023
• Service: Still 5 years (not reduced)

Case 2: Authorized Unpaid Leave

Scenario: Employee takes 30-day unpaid leave (authorized by employer)

Service impact:

• Contract terms govern
• If contract silent, MOHRE typically includes as continuous service
• However, some contracts state "unpaid leave does not count toward service"

Recommendation: Check contract. If unclear, assume it counts (burden on employer to prove otherwise).

Case 3: Suspension Pending Investigation

Scenario: Employee suspended 90 days for investigation, then cleared

Service impact:

• If cleared/exonerated: Suspension counts toward service (continuous)
• If found guilty: Suspension may not count (employer decision)

Example:

• Suspended 1 Jan - 31 Mar 2024
• Cleared on 1 April 2024
• Suspension period: Counts toward service

Case 4: Unauthorized Absence

Scenario: Employee absent without permission for 15 days

Service impact:

• May break service continuity
• Employer may deduct from service years
• However, if employer didn't terminate employment, typically counts

MOHRE guidance: Unauthorized absence does not automatically break service unless employer formally terminates employment.

Case 5: Long-Term Sick Leave

Scenario: Employee on certified sick leave for 6 months

Service impact:

• Counts as continuous service
• UAE labour law protects sick leave (with medical certification)
• Include full period in service years

Case 6: Working During Notice Period

Scenario: Employee serves 60-day notice period

Service impact:

• Full notice period counts toward service
• Service ends on last working day (end of notice)

Example:

• Notice starts: 1 November 2025
• Notice ends: 31 December 2025
• Service includes November and December 2025

Common Service Calculation Errors

How to Verify Employer's Service Calculation

Step 1: Request detailed breakdown

Ask employer to provide:

• Service start date (post-probation)
• Service end date (last working day)
• Total service years (with decimals)
• Any periods excluded and why

Step 2: Cross-check with your records

Verify:

• Contract start date + probation = service start date
• Last working day = service end date
• Probation excluded
• Partial years included

Step 3: Calculate manually

Use date calculator:

1. Enter service start date
2. Enter service end date
3. Calculate total days
4. Divide by 365 = service years

Step 4: Compare results

If discrepancy > 1 month (0.08 years):

• Highlight the error
• Show your calculation
• Request correction

Frequently Asked Questions

1. If I worked 4 years 11 months, do I get 5 years of gratuity?

No. Service is 4.92 years (not 5). Use 4.92 in calculation. You cannot round up.

2. Does annual leave count toward service years?

Yes. Paid annual leave counts as continuous service.

3. If contract doesn't mention probation, is there probation?

Legally, no. If contract silent, service starts from contract start date. However, employer may argue standard 6-month probation applies; clarify early.

4. Can employer retroactively claim I had 6-month probation if contract silent?

Difficult. Contract is primary evidence. If silent, employer must prove probation was agreed separately (e.g., offer letter).

5. If I work exactly 1 year post-probation, am I eligible?

Yes. Minimum is ≥ 1 year. You qualify on the 1-year anniversary.

6. How do I count service if I worked part-time?

Part-time vs full-time doesn't matter for service years. Count calendar days from post-probation start to end. Gratuity formula uses basic salary (which may be lower for part-time), not service years adjustment.

Tools and Resources

Online Date Calculators

Calculate exact days between dates:

• timeanddate.com/date/duration.html
• calculator.net/date-calculator.html

Our Gratuity Calculator

Automatically calculates service years and gratuity:

MOHRE Service Verification

Log in to mohre.gov.ae → "My Services" → "Employment Contract" to see:

• Contract start date
• Contract end date (if terminated)
• Official service period per MOHRE records

Official Legal References

Primary sources:

• Federal Decree-Law No. 33 of 2021 - Article 51 (Service Years and Gratuity)
• Cabinet Resolution No. 1 of 2022 - Implementation Regulations
• MOHRE Ministerial Resolution No. 279 of 2022 - Probation Period Standards

For questions:

• MOHRE Hotline: 600590000
• MOHRE Website: mohre.gov.ae

Related Resources

• How to Calculate Gratuity in UAE: Complete 2025 Guide
• Gratuity Eligibility in UAE: Who Qualifies
• Common Errors in UAE Gratuity Calculations
• Limited vs Unlimited Contracts: Gratuity Differences
• UAE Labour Law 2025: Gratuity Entitlement Breakdown

For an instant end-of-service estimate, use our online gratuity calculator UAE.

Final Disclaimer: This guide reflects UAE labour law as of November 2025 and is for informational purposes. It is not legal advice. For service years disputes, consult MOHRE or a qualified employment lawyer.