UAE and GCC nationals: pensions instead of gratuity

The gratuity formula on this site is for foreign workers. Emiratis in the private sector are covered by the pension system instead, and GCC nationals by an extension of their own country’s scheme. Here is how the pieces fit, and what to check.

The rule in the labour law

Article 51 of Federal Decree-Law No. 33 of 2021 deals with nationals first. Article 51(1): "The national worker shall be entitled to end of service benefits at the end of his service, in accordance with the legislation regulating the pensions and social securities in the State." The 21-day and 30-day gratuity in Article 51(2) is expressly for "the full-time foreign worker".

So an Emirati leaving a private-sector job does not receive an Article 51 gratuity, and the calculator on this site does not describe their position. Their end-of-service rights come through the pension system, built up by monthly contributions during employment.

Emiratis: GPSSA and the 2023 pension law

The General Pension and Social Security Authority (GPSSA) administers the federal pension system for Emiratis in the private sector. Since 31 October 2023, Federal Law No. 57 of 2023 applies to Emiratis employed for the first time from that date. According to GPSSA's published material, those already registered before it generally remain under the earlier law, Federal Law No. 7 of 1999, unless they opt in.

Monthly contributions for Emiratis first employed from 31 October 2023, as a share of the contribution account salary, according to GPSSA.
Who pays	Share
Insured employee	11%
Employer	15%
Of which borne by the government, for private-sector employees with a contribution account salary under 20,000 AED	2.5%
Total	26%

Under the earlier regime the total was lower — 20%, with the employee paying 5%. If you were registered before the 2023 law took effect, your payslip will show the older rates.

Two practical points:

The contribution salary is not the gratuity's basic wage. Pension contributions are calculated on the "contribution account salary" defined in the pension law, within a minimum and maximum. Check what your employer is reporting; it drives what you eventually receive.
Emiratis from Abu Dhabi are generally covered by the Abu Dhabi Pension Fund rather than GPSSA, with its own rules.

What an Emirati leaving a job should check

That you were registered from day one. Gaps in registration are gaps in contributions. A private-sector employer is responsible for registering Emirati staff and paying contributions on time.
That contributions were paid on your full contribution salary, not on basic alone if that is not what the law requires.
What your service entitles you to. Whether you qualify for a pension, or for another benefit on leaving, depends on your total contribution period and the law that applies to you. GPSSA, or ADPF in Abu Dhabi, is the authority to ask.
The rest of the settlement. Only the gratuity is replaced by the pension system. Outstanding wages, unused leave under Article 29(9) and notice pay under Article 43 are owed to Emirati workers exactly as to anyone else, within 14 days under Article 53. Use the settlement checklist.

GCC nationals

Nationals of other GCC states working in the UAE are covered by an arrangement between the Gulf states that extends their home country's social insurance protection to them while they work elsewhere in the GCC. In the UAE, GPSSA is the authority employers register them with. The financial free zones make the consequence explicit:

ADGM: the Employment Regulations 2024 require employers to register UAE nationals with the relevant pension authority, and GCC nationals with the relevant federal authority such as GPSSA, within 30 calendar days of starting. Those employees are not eligible for the ADGM gratuity unless the pension authority has approved in writing that they need not participate.
DIFC: employees who must be registered with GPSSA under the DIFC Employment Law are excluded from the DIFC end-of-service arrangements, including the pre-2020 gratuity.

On the mainland, the labour law's Article 51(2) speaks of "foreign" workers, and whether a GCC national registered under the extension system also has an Article 51 claim is not something the decree-law answers in terms. We would not rely on any calculator for it, including ours. Ask GPSSA how your registration is treated, and ask your employer in writing which end-of-service arrangement it is applying.

The federal savings scheme

The voluntary alternative end-of-service scheme under Cabinet Resolution No. 96 of 2023 replaces the Article 51 gratuity for employees an employer enrols. It is an alternative to gratuity for expatriates, not a substitute for the pension contributions that apply to nationals.

Emiratisation targets and settlements

Mainland private-sector employers of a certain size have Emiratisation targets, and some Emiratis in the private sector receive support under the Nafis programme. Neither changes the end-of-service position described here. A settlement dispute is still a labour dispute, handled by MOHRE like any other — see filing a MOHRE complaint.

Questions

Do UAE nationals get end-of-service gratuity in the private sector?

Not under Article 51(2), which applies to foreign workers. Article 51(1) sends nationals to the pensions and social security legislation, administered by GPSSA or, for Abu Dhabi nationals, the Abu Dhabi Pension Fund.

What are the pension contribution rates for Emiratis under the new law?

For those first employed from 31 October 2023, GPSSA describes a total of 26%: 11% from the employee and 15% from the employer, of which the government bears 2.5% for private-sector employees with a contribution salary under 20,000 AED.

Are GCC nationals entitled to the UAE gratuity?

In ADGM and the DIFC, GCC nationals registered with GPSSA are excluded from gratuity. On the mainland the position depends on registration under the GCC extension arrangements; confirm it with GPSSA.

Published 2026-10-18 and reviewed against Federal Decree-Law No. 33 of 2021 and published GPSSA material on Federal Law No. 57 of 2023. Pension rules are detailed and depend on your registration date and emirate; confirm your position with the pension authority. General guidance, not legal advice — see the disclaimer.