UAE Seafarer Gratuity: Complete 2026 Guide
End of service gratuity is one of the most important financial benefits available to seafarers and maritime workers employed in the UAE. Under UAE Federal Decree-Law No. 33 of 2021 (the New Labour Law, effective February 2022), all workers — including ship crew, offshore personnel, port employees, and marine engineers — who complete at least one full year of continuous service are legally entitled to gratuity on termination or resignation.
For UAE's maritime community — whether you're a Captain with ADNOC Marine, an offshore engineer at Drydocks World, a tugboat AB at Jebel Ali Port, or a marine superintendent at a Dubai shipping company — understanding how your gratuity is calculated is critical for financial planning, contract negotiation, and knowing your full employment rights.
How is UAE Seafarer Gratuity Calculated?
The UAE Labour Law uses a tiered gratuity formula based on years of service. The formula applied by the calculator above is:
Gratuity = (Basic Monthly Salary ÷ 30) × 21 × Years Served
For years beyond 5:
Gratuity = Previous Amount + (Basic Monthly Salary ÷ 30) × 30 × Extra Years
The daily basic wage is used as the foundation. This is calculated by dividing the basic monthly salary by 30 days — not 26 or any other figure. Only the basic salary is used; housing allowance, food allowance, sea service allowance, and overtime are all excluded from the gratuity base.
Gratuity Eligibility Rules for Seafarers
| Years of Service | Resignation Entitlement | Termination / Expiry | Notes |
|---|---|---|---|
| Less than 1 year | No gratuity | No gratuity | Minimum 1 year required |
| 1 – 3 years | 1/3 of calculated gratuity | Full gratuity | Resignation penalty applies |
| 3 – 5 years | 2/3 of calculated gratuity | Full gratuity | Partial resignation penalty |
| 5+ years | Full gratuity | Full gratuity | No deduction after 5 years |
Important for seafarers on rotation contracts: Time spent on approved rotation leave (sign-off periods) as part of a contract is generally counted as continuous service for gratuity purposes. However, periods of unpaid leave, unauthorised absence, or breaks between separate contracts do not count and must be deducted from the service period.
Gratuity for Offshore & Rotation Workers
Seafarers on rotation schedules (e.g. 4 weeks on / 4 weeks off) employed by UAE-registered marine companies have the same gratuity rights as shore-based employees. The continuous nature of the employment relationship — not the time physically at sea — determines the service period for gratuity calculation.
Key points for offshore and rotation workers in the UAE:
Approved rotation leave (sign-off) between sea contracts with the same UAE employer counts as continuous service. Both on-sign and off-sign periods are included in the total service calculation for gratuity purposes.
Seagoing allowance, sea pay, subsistence, leave pay, and offshore premiums are excluded from the gratuity base. Only the agreed basic monthly salary in your UAE employment contract counts.
Under the 2021 Labour Law, all UAE employment contracts are treated as limited (fixed-term) contracts of maximum 3 years, renewable. This means resignation from a limited contract before expiry no longer results in automatic gratuity forfeiture — only the year-based percentage applies.
UAE Labour Law caps total gratuity at a maximum of 2 years' total basic salary, regardless of total years of service. This cap is rarely reached in practice except for very long-serving, high-earning maritime officers.
If a UAE marine employer fails to pay gratuity on termination, seafarers can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) via the MOHRE app or website. Labour cases are handled efficiently and employers face significant penalties for non-payment.
UAE Seafarer Gratuity Example Calculations
| Rank | Basic Salary | Service | Reason | Gratuity (AED) |
|---|---|---|---|---|
| Captain | AED 28,000 | 7 years | Resignation | AED 154,933 |
| Chief Engineer | AED 22,000 | 5 years | Contract Expiry | AED 77,000 |
| Able Seaman | AED 5,500 | 3 years | Resignation | AED 12,833 (2/3 rate) |
| Second Engineer | AED 16,000 | 10 years | Termination | AED 196,000 |
| Marine Superintendent | AED 18,000 | 2 years | Resignation | AED 14,000 (1/3 rate) |
