Does Unpaid Leave Reduce Your UAE Gratuity? Here's the Exact Impact (2026)
Most gratuity guides mention basic salary, years of service, and the 21/30-day formula — but almost none explain what happens if you took unpaid leave along the way. If you've ever taken time off without pay, your final gratuity number may be lower than a simple calculator suggests. Here's exactly why, and how to work out the impact. The Short Answer Yes — unpaid leave reduces your gratuity. Under UAE Labour Law, gratuity is calculated based on your qualifying service period , and days you were absent without pay are not counted toward that period. In effect, unpaid leave "pauses" your service clock rather than simply passing by unnoticed. Why This Happens Gratuity under Federal Decree-Law No. 33 of 2021 is built entirely around continuous, paid service: The first 5 years earn 21 days of basic salary per year Every year after that earns 30 days of basic salary per year Your daily wage is your monthly basic salary ÷ 30 All of this assumes your years...