Understand end-of-service gratuity rules across the Emirate of Abu Dhabi: Mainland MOHRE private-sector companies vs Abu Dhabi Global Market (ADGM) financial free zone entities.
Two Distinct Legal Frameworks in Abu Dhabi
Employment rights in Abu Dhabi depend on your employer's registration jurisdiction: Abu Dhabi Mainland (governed by MOHRE & Federal Decree-Law No. 33) or ADGM on Al Maryah Island (governed by ADGM Employment Regulations 2019).
Mainland Abu Dhabi vs ADGM Comparison Table
Jurisdiction Feature
Abu Dhabi Mainland (MOHRE)
ADGM (Al Maryah Island)
Governing Statute
Federal Decree-Law No. 33 of 2021
ADGM Employment Regulations 2019
Daily Wage Divisor
Basic Salary ÷ 30 Days
Basic Salary × 12 ÷ 365 Days
Accrual Rate (Years 1–5)
21 Days per Year
21 Days per Year
Accrual Rate (Year 6+)
30 Days per Year
30 Days per Year
Maximum Statutory Cap
Capped at 24 Months Basic Wage
No Statutory Cap Limit
Pensions for UAE & GCC Nationals in Abu Dhabi
UAE citizens and GCC nationals working in Abu Dhabi mainland or free zone companies do not receive standard end-of-service gratuity. Instead:
Employers must register UAE national employees with the Abu Dhabi Pension Fund (ADPF) or GPSSA.
Monthly statutory retirement contributions are made by both employer and employee throughout the employment lifecycle.
Calculate Your Exact Abu Dhabi Gratuity
Run your dates and basic salary through our live statutory calculation engine.
Common questions regarding Abu Dhabi mainland and ADGM gratuity calculations
How is gratuity calculated for Abu Dhabi mainland employees?
Abu Dhabi mainland employees follow the standard UAE Federal Labour Law (Federal Decree-Law No. 33 of 2021): 21 days' basic wage per year for the first 5 years, and 30 days' basic wage per year thereafter, capped at 2 years' basic wage.
What employment law applies in Abu Dhabi Global Market (ADGM)?
ADGM operates under its own common-law legal system governed by the ADGM Employment Regulations 2019 (as amended), independent of UAE federal mainland labour law.
How is gratuity calculated in ADGM?
Under ADGM Employment Regulations 2019, an eligible employee who completes 1 continuous year receives: (a) 21 days' basic wage per year for the first 5 years, and (b) 30 days' basic wage per year for each additional year. Daily wage is calculated as Basic Salary × 12 ÷ 365 days.
Does the 2-year gratuity cap apply in ADGM?
No. Unlike UAE mainland law which caps total statutory gratuity at 24 months of basic salary, ADGM Employment Regulations do not impose a statutory 2-year cap on end-of-service gratuity.
Can an ADGM employer offer a workplace savings scheme instead of gratuity?
Yes. ADGM regulations permit employers to establish or contribute to an approved defined contribution workplace savings scheme in lieu of paying end-of-service gratuity.
Do UAE national employees in Abu Dhabi receive end-of-service gratuity?
UAE and GCC national employees are enrolled in the General Pension and Social Security Authority (GPSSA) or Abu Dhabi Pension Fund and receive retirement pension benefits rather than lump-sum end-of-service gratuity.
Is there a resignation penalty in Abu Dhabi under current law?
No. Under Federal Decree-Law No. 33 of 2021 (mainland) and ADGM Regulations 2019, employees who resign after completing 1 year of continuous service receive 100% of their accrued statutory gratuity.
When must final settlement be paid in Abu Dhabi?
On the mainland, Article 53 requires full settlement within 14 calendar days of the last working day. In ADGM, final payments must be settled in accordance with the employment contract, typically within 14 days.
