Career advice · Updated November 2026
UAE End of Service Gratuity for Kenyan Workers: How It Is Calculated and Paid
If you are a Kenyan working in the United Arab Emirates (UAE), your UAE end of service gratuity is often the largest single sum you will take home when a contract ends. Under Article 51 of the UAE Labour Law, a foreign worker in the private sector earns gratuity after one year of continuous service. It is calculated on your last basic salary: 21 days’ pay for each of the first five years and 30 days’ pay for each year after that, capped at two years’ wages. This guide explains the rules, a worked example, the newer Savings Scheme and what to check before you fly home.
Checked on 8 November 2026 against the UAE Government portal page End of service benefits for workers in the private sector, which summarises Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), Cabinet Resolution No. 1 of 2022 and the Savings Scheme rules. Domestic workers are covered by a separate law. Free zone rules may differ, so check your contract and free zone authority.
Who qualifies for UAE end of service gratuity
The portal sets out the basic conditions for foreign workers in the private sector:
- You must have completed at least one year of continuous service. Below one year there is no gratuity.
- Days of unpaid absence are not counted as service.
- Once you pass one year, fractions of a year count proportionately, so 3 years and 6 months is treated as 3.5 years.
- Emiratis follow the pensions and social security laws instead. The gratuity rules here apply to foreign workers such as Kenyans.
The portal states the formula in terms of completed continuous service and your last basic wage. Read your contract and any settlement letter for the dates the employer is using, because a disagreement about the start date or a period of unpaid leave changes the result. If you moved between companies in the same group, ask whether the service was treated as continuous, and get that answer in writing.
How the UAE end of service gratuity is calculated
| Years of service | Gratuity per year |
|---|---|
| Less than 1 year | Nothing |
| 1 to 5 years | 21 days of basic salary for each year |
| Each year after the first 5 | 30 days of basic salary for each year |
| Cap | Total cannot exceed 2 years’ wages |
Only the basic salary counts. Housing, transport, utilities, furniture and similar allowances are excluded. This is why your contract’s split between basic pay and allowances matters so much. Two jobs with the same total package can produce very different gratuities.
Worked example of a UAE gratuity calculation
The following is our illustration, not an official figure. Suppose your last basic salary is AED 3,000 a month, plus allowances, and you worked 7 years.
- Daily basic wage: AED 3,000 ÷ 30 = AED 100. This daily-rate method is commonly used. Confirm the divisor in your settlement letter.
- First 5 years: 5 × 21 days × AED 100 = AED 10,500.
- Years 6 and 7: 2 × 30 days × AED 100 = AED 6,000.
- Total: AED 16,500. Allowances do not change this figure.
To see the amount in shillings, convert at your bank’s rate on the day of transfer. Exchange rates move, so we do not quote a fixed KSh figure.
When your employer must pay
- The employer must pay all outstanding wages, other entitlements and gratuity within 14 days of the contract ending.
- The employer may deduct amounts you owe the employer from the gratuity. Ask for a written breakdown of any deduction.
Part-time and other work models
Under Article 30 of Cabinet Resolution No. 1 of 2022, gratuity for part-time and other models is pro-rated by hours. Your contract’s annual working hours are divided by full-time annual hours and multiplied by 100 to give a percentage. That percentage is then applied to the full-time gratuity. Gratuity does not apply to temporary work lasting less than one year.
The Savings Scheme: a different system some employers use
The Ministry of Human Resources and Emiratisation (MoHRE) runs a voluntary alternative system called the Savings Scheme. Under Cabinet Resolution No. 96 of 2023, participating employers pay monthly into an approved investment fund instead of paying the traditional gratuity at the end:
- 5.83% of the monthly basic salary for employees with under 5 years of service;
- 8.33% for employees with more than 5 years;
- contributions must reach the fund within 15 days of the start of each month.
Before enrolling you, the employer must settle any gratuity already earned under the old system. You are entitled to all contributions plus any returns within 14 days after the job ends. You can keep the money invested or withdraw it at any time. You may also add voluntary contributions, up to 25% of your total wage. Options include a capital-guaranteed portfolio, which the portal describes for unskilled workers, and riskier portfolios with variable returns.
If your employer has enrolled you, ask for the fund’s name and your account statement before you leave the UAE.
Checklist before you come home to Kenya
- Confirm your continuous service dates and any unpaid leave the employer will deduct from service.
- Check your basic salary on the latest contract or payslip, not your total package.
- Work out your expected gratuity using the 21-day and 30-day rule, and compare it with the employer’s figure.
- Ask in writing for a final settlement showing wages, unused leave, gratuity and deductions.
- If you are on the Savings Scheme, get the fund details and confirm your withdrawal.
- Keep copies of your contract, payslips and settlement letter. You may need them for a complaint after you return.
- Plan how the money will reach a Kenyan bank or SACCO account before your UAE account closes.
If the gratuity is not paid
Labour complaints, including those about the Savings Scheme, go to MoHRE through its service channels. Complaints about an investment fund’s performance go to the Securities and Commodities Authority, and financial free zones handle their own disputes. Raise a complaint before you leave if you can, because it is much harder to follow up from Kenya. For the wider picture of working in the region, see our guide to Gulf jobs for Kenyans.
Frequently asked questions
How is UAE end of service gratuity calculated?
On your last basic salary: 21 days for each of the first five years and 30 days for each later year, with the total capped at two years' wages. Allowances are excluded.
Do I get gratuity if I worked less than a year in the UAE?
No. The UAE portal says a worker must complete at least one year of continuous service before gratuity is due.
How soon must my employer pay my gratuity?
Within 14 days of the end of the contract, together with outstanding wages and other entitlements, although the employer may deduct amounts you owe.
What is the UAE Savings Scheme?
A voluntary MoHRE system in which employers pay 5.83% or 8.33% of basic salary monthly into an approved fund instead of paying traditional gratuity at the end.