UAE Gratuity Calculator

UAE Gratuity Calculator

Calculate your end-of-service gratuity under Federal Decree-Law No. 33 of 2021 — free, instant, and nothing you type leaves your browser.

How to use this calculator

Enter your basic salary

Use the "Basic Salary" figure on your labour contract or payslip — not your total package. Housing, transport and other allowances are legally excluded from the gratuity calculation.

Add your service details

Enter your total years of service (partial years count — 3 years and 6 months is 3.5). If you took unpaid leave, add the total days; we deduct anything beyond 10 days per year of service, as the law requires.

Read your breakdown

You get the estimated gratuity instantly, plus a year-by-year table showing exactly how the 21-day and 30-day tiers apply to your case. Use Copy Link to save or share the exact calculation.

UAE end-of-service gratuity rules (2026)

End-of-service gratuity is the lump sum every private-sector employee in the UAE is legally owed when their job ends, as long as they completed at least one year of continuous service. It is calculated from your basic salary only — the figure on your labour contract, before housing, transport and other allowances. Getting this one detail right is the difference between a realistic estimate and wishful thinking.

The current rules come from Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, in force since February 2022. Under Article 51, you earn:

A worked example you can verify by hand

Take a worker with a basic salary of AED 10,000 who served exactly 7 years:

PeriodRuleDaysCalculationAmount
Years 1–521 days / year105 days105 × (10,000 ÷ 30)AED 35,000
Years 6–730 days / year60 days60 × (10,000 ÷ 30)AED 20,000
Total gratuityAED 55,000

Note that daily wage is rounded only for display — the calculator uses the exact fraction (basic ÷ 30), so a salary of AED 10,000 gives exactly AED 55,000 here, not a rounding artifact.

Resignation vs. termination

Under the 2021 law, resignation is no longer penalised. Employees on standard fixed-term contracts who resign after one full year of service get the same gratuity as those whose contracts are terminated. The old three-tier resignation scale (⅓ for 1–3 years, ⅔ for 3–5 years) applies only to legacy unlimited contracts signed before 2022 — and MOHRE has confirmed these are being phased out, so most workers who joined after 2021 never need to think about it.

Common mistakes to avoid

Sources

Formula and rules: UAE Federal Decree-Law No. 33 of 2021, Article 51, and MOHRE published guidance. This site is an independent educational tool — it is not affiliated with MOHRE or any government body, and the final ruling on any gratuity dispute rests with MOHRE.Read our full disclaimer.

Frequently asked questions

How is end-of-service gratuity calculated in the UAE?

Under Federal Decree-Law No. 33 of 2021 (Article 51), you earn 21 days of basic salary for each of the first 5 years of service, and 30 days of basic salary for each year after that. Daily wage = basic monthly salary ÷ 30. The total is capped at two years' basic wages. Only basic salary counts — housing, transport and other allowances are excluded.

Do I get gratuity if I resign?

Yes. Since the 2021 law took effect, employees on fixed-term contracts (now the standard) who resign after completing at least one year of service receive the same gratuity as if they had been terminated. There is no resignation penalty in the current system.

Why is only basic salary counted, not my total package?

Article 51 explicitly bases gratuity on the basic wage. Allowances for housing, transport, schooling and similar benefits are legally excluded. This is the single most common mistake people make when estimating their payout — many employers also get it wrong, which is why disputes go to MOHRE.

What happens if I have worked less than one year?

You are not entitled to any gratuity. The one-year minimum applies regardless of whether you resign or are terminated.

Is there a maximum gratuity payment?

Yes. Gratuity cannot exceed two years' worth of your basic salary (24 × monthly basic). For very long service with a high salary, this cap can bind — the calculator shows when it applies.

Does unpaid leave affect my gratuity?

Yes. Unpaid absence beyond 10 working days per year is deducted from your counted service period. Our calculator lets you enter total unpaid leave days and applies this rule automatically.

What about unlimited contracts signed before the 2021 law?

Contracts issued before 2022 under the old unlimited model may follow the legacy scale: one-third of the 21-day entitlement for 1–3 years of service, two-thirds for 3–5 years, and the full amount beyond 5 years. If your contract is unlimited, confirm which regime applies with MOHRE before relying on an estimate.

Is this calculator free and anonymous?

Yes. All calculations run in your browser — nothing you type is sent to or stored on any server.