Free tool
UAE gratuity calculator
Estimate your end-of-service benefit in seconds. Enter your basic salary and your dates of service to see your gratuity under the current UAE labour law — Federal Decree-Law No. 33 of 2021.
End-of-service gratuity estimate
Article 51 · Decree-Law 33 of 2021Estimated gratuity
7 years of service
AED 66,000
- Daily wage = AED 12,000 ÷ 30 = 400
- First 5 yrs × 21 days = AED 42,000.00
- Beyond 5 yrs: 2 yrs × 30 days = AED 24,000.00
- Total = AED 66,000.00
Indicative estimate under the current UAE labour law (Federal Decree-Law No. 33 of 2021, in force since February 2022). Actual entitlements can vary with unpaid leave, contract terms and employer policy. This is not legal advice.
How UAE gratuity is calculated
End-of-service gratuity is a statutory payment that your employer owes you when your employment ends. For private-sector employees it follows Federal Decree-Law No. 33 of 2021 (Article 51), the labour law in force since February 2022.
Who qualifies
You must complete at least one year of continuous service to be entitled to gratuity. Once you pass that milestone, the amount is the same whether you resign or are terminated. Days of unpaid leave are not counted towards your length of service.
The formula
Gratuity is based on your basic salary — not your total package. Allowances such as housing, transport and utilities are excluded. Your daily wage is your monthly basic salary divided by 30, and then:
- First 5 years: 21 days of basic pay for each year of service.
- Beyond 5 years: 30 days of basic pay for each additional year.
- Partial years are paid pro-rata.
- Cap: total gratuity cannot exceed two years' wage.
Worked examples
| Monthly basic | Service | How it's worked out | Gratuity |
|---|---|---|---|
| AED 8,000 | 3 years | 3 × 21 days (AED 266.67/day) | AED 16,800 |
| AED 12,000 | 7 years | 5 × 21 days + 2 × 30 days (AED 400/day) | AED 66,000 |
| AED 20,000 | 10 years | 5 × 21 days + 5 × 30 days (AED 666.67/day) | AED 170,000 |
These figures are indicative. Real entitlements can change with unpaid leave, contract terms and employer policy, and this tool is not a substitute for legal advice.
A little more clarity
Gratuity questions, answered.
What is end-of-service gratuity in the UAE?
Gratuity is a lump-sum payment your employer owes you when your employment ends. In the private sector it is governed by Federal Decree-Law No. 33 of 2021 and is calculated from your basic salary and your length of continuous service.
Who is eligible for gratuity?
Full-time private-sector employees who complete at least one year of continuous service are entitled to gratuity, whether they resign or are terminated. Time spent on unpaid leave is not counted towards the service period.
Is gratuity calculated on basic salary or total salary?
On basic salary only. Allowances such as housing, transport and utilities are excluded from the gratuity calculation.
How is UAE gratuity calculated?
For the first five years of service you earn 21 days of basic pay for each year. For every year beyond five years you earn 30 days of basic pay. Your daily wage is your monthly basic salary divided by 30, and partial years are paid pro-rata.
Does resigning reduce my gratuity?
No. Under the current law, in force since February 2022, gratuity is the same whether you resign or are terminated, as long as you have completed at least one year of service. The old reductions for resignation under unlimited contracts no longer apply.
Is there a maximum gratuity amount?
Yes. Total end-of-service gratuity cannot exceed two years' worth of the employee's wage.
What if I leave before completing one year?
If you leave before completing one year of continuous service, no statutory gratuity is due.
When should gratuity be paid?
Employers are generally required to settle end-of-service entitlements, including gratuity, within 14 days of the end of the contract.
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