Abu Dhabi Gratuity Rules Explained
Abu Dhabi employees in mainland companies are entitled to end-of-service gratuity under UAE Federal Labour Law. The calculation is based purely on your last drawn basic salary — allowances (housing, transport, utilities) are excluded.
Abu Dhabi vs ADGM — What's the Difference?
If you work for a mainland employer in Abu Dhabi, the normal UAE federal gratuity formula usually applies. If your employer is based in ADGM (Abu Dhabi Global Market), you should check the free zone rules and your contract before relying on a mainland estimate.
| Factor | Abu Dhabi Mainland | ADGM Free Zone |
|---|---|---|
| Governing Law | UAE Federal Labour Law | ADGM Employment Regulations 2019 |
| Formula | 21 days/year (≤5 yrs); 30 days/year (>5 yrs) | Defined in ADGM regulations / contract |
| Dispute Authority | MOHRE → Abu Dhabi Labour Court | ADGM Dispute Resolution Authority (DRA) |
Abu Dhabi Context That Often Matters
Abu Dhabi can be a little confusing because people often group mainland employers and ADGM companies together. They are not the same. For most private sector jobs in Abu Dhabi mainland, this calculator is the right starting point. If your offer letter or contract says ADGM, treat that as a separate ruleset and double-check the wording before you accept a final settlement figure.