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UAE Gratuity Calculator 2026
Work out your end-of-service gratuity under current UAE labour law, with the exact formula and article references shown.
Your estimated gratuity
End of Service Gratuity Calculation
Employee name (for the report, optional): Company name (for the report, optional):
Your estimated gratuity:
Years of service: Daily wage (basic ÷ 30):
This calculator gives an estimate based on the UAE federal gratuity formula. It is not legal or financial advice. Confirm your exact entitlement with MOHRE or a qualified advisor before relying on it. ()
How it's calculated
Gratuity becomes payable once an employee completes at least one year of continuous service with the same employer. The daily wage is the last basic monthly wage divided by 30 - allowances, housing and other benefits in kind are excluded, only the basic wage counts.
For each of the first five years of service, gratuity is 21 days' wage per year. For every year beyond that, it is 30 days' wage per year. A part year is paid pro rata based on the number of days actually served, under Article 51(3).
Since the 2021 law came into force, gratuity is no longer reduced for resigning rather than being terminated - the earlier scale that cut gratuity for employees who resigned before five years has been removed. The total gratuity payable is capped at two years' total basic wage. Days taken as unpaid leave do not count toward the service period.
Federal Decree-Law No. 33 of 2021, Article 51(2) and 51(3)
Worked examples
Example 1: 3 years of service
Basic salary AED 8,000/month, 3 years exactly. Daily wage = 8,000 ÷ 30 = AED 266.67. Gratuity = 3 × 21 × 266.67 = AED 16,800.
Example 2: 7 years of service
Basic salary AED 12,000/month, 7 years exactly. Daily wage = AED 400. First 5 years: 5 × 21 × 400 = AED 42,000. Remaining 2 years: 2 × 30 × 400 = AED 24,000. Total = AED 66,000.
Example 3: part year included
Basic salary AED 10,000/month, 2 years and 6 months of service. Daily wage = AED 333.33. Full years: 2 × 21 × 333.33 = AED 14,000. The remaining 6 months are paid pro rata at the 21-day rate: (6/12) × 21 × 333.33 = AED 3,500. Total = AED 17,500.
Rules at a glance
| Situation | Rule |
|---|---|
| Less than 1 year of service | No gratuity is due. |
| 1 to 5 years of service | 21 days' basic wage for each year. |
| More than 5 years of service | 30 days' basic wage for each year beyond the fifth. |
| Resignation vs. termination | No difference under the current law - the same formula applies either way. |
| Unpaid leave days | Excluded from the service period used in the calculation. |
| Maximum gratuity | Capped at two years' total basic wage. |
| DIFC / ADGM employees | Covered by their own free zone employment regulations, not this federal formula. |
| UAE nationals | Covered by GPSSA pension contributions instead of end-of-service gratuity. |
Häufig gestellte Fragen
Who is eligible for gratuity in the UAE?
Full-time private-sector employees (not UAE nationals, who are covered by GPSSA pension instead) who complete at least one continuous year of service with the same employer.
Does resigning reduce my gratuity?
No. Under Federal Decree-Law No. 33 of 2021, the earlier rule that reduced gratuity for employees who resigned before completing five years no longer applies. The same 21/30-day formula applies whether you resign or are terminated.
What salary is gratuity based on?
Your last basic monthly wage only, excluding housing allowance, transport allowance, bonuses and other benefits in kind.
Is there a maximum gratuity amount?
Yes. Total gratuity cannot exceed two years' worth of total basic wage, regardless of how many years you worked.
Do unpaid leave days count toward my service period?
No. Days taken as unpaid leave are excluded when calculating your length of service for gratuity purposes.
When must my employer pay my gratuity?
Under Article 53, all end-of-service dues, including gratuity, must be paid within 14 days of the contract ending.
Does this apply if I work in a free zone like DIFC or ADGM?
No. DIFC and ADGM have their own separate employment regulations and end-of-service schemes, so this federal formula does not apply there.
Is part-time work included?
Part-time and job-sharing employees receive a pro-rata gratuity under Cabinet Resolution No. 1 of 2022, Article 30, based on their contracted hours against a full-time schedule.
Sources: Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, Ministry of Human Resources and Emiratisation (MOHRE)
This calculator gives an estimate based on the UAE federal gratuity formula. It is not legal or financial advice. Confirm your exact entitlement with MOHRE or a qualified advisor before relying on it.