UAE end-of-service gratuity calculator
Enter your basic salary and dates of service to estimate the gratuity you are owed under the UAE Labour Law.
How the gratuity is calculated
The rule comes from Article 51 of Federal Decree-Law No. 33 of 2021, the UAE Labour Law in force since February 2022:
- One year minimum of continuous service.
- 21 days of basic wage for each of the first five years.
- 30 days of basic wage for each year beyond five.
- Part-years are paid in proportion to the time worked.
- Unpaid absence is not counted as service.
- Cap: the total cannot exceed two years of wage.
Daily wage = basic monthly salary ÷ 30
Gratuity = daily wage × (21 × first 5 years + 30 × years after 5)
The calculator counts your service in days divided by 365. Some employers work out the daily wage as monthly × 12 ÷ 365, which gives a result about 1.4% lower.
Worked examples
| Service | Basic salary | Calculation | Gratuity |
|---|---|---|---|
| 3 years | AED 6,000 | 200 × 21 × 3 | AED 12,600 |
| 4 years (resigned) | AED 5,000 | 166.67 × 21 × 4 | AED 14,000 |
| 8 years | AED 9,000 | 300 × (21 × 5 + 30 × 3) | AED 58,500 |
Example 1: three years in sales
Omar's basic salary is AED 6,000 and his package with allowances is AED 10,000. Only the basic counts: 6,000 ÷ 30 = AED 200 a day. Three years at 21 days a year is 63 days, so his gratuity is 200 × 63 = AED 12,600.
Example 2: resigning after four years
Priya resigns after 4 years on a basic AED 5,000. Under the current law resignation does not reduce gratuity, so she gets 166.67 × 21 × 4 = AED 14,000.
Example 3: eight years with the same employer
Khalid earns a basic AED 9,000 (AED 300 a day). The first 5 years give 5 × 21 = 105 days and the next 3 years give 3 × 30 = 90 days. In total 195 days × 300 = AED 58,500.
Common mistakes
- Using total salary. Allowances are not part of the basic wage.
- Applying the old resignation cuts. The pre-2022 law reduced gratuity for resignation. The current law does not.
- Using 30 days from year one. The 30-day rate only starts after five full years.
- Forgetting unpaid leave. Long unpaid absences come off your service.
- Assuming free-zone rules match. DIFC and ADGM use different systems.
Where to check or claim officially
If your employer disagrees with your figures or does not pay on time, these are the official routes. Keep your contract, payslips and a dated copy of any notice.
- UAE: file a labour complaint with MOHRE on its website or app, or call 600590000. If it is not settled within 14 days it goes to court; MOHRE can decide claims under AED 50,000 itself (u.ae labour disputes). A claim cannot be heard more than one year after the right became due (Decree-Law 33/2021, Art. 54).
Read the final settlement checklist for payment deadlines and what the settlement must include.
Frequently asked questions
Do I lose my gratuity if I resign in the UAE?
No. Under the 2021 Labour Law, an employee who completes at least one year of service gets the full gratuity whether they resign or the employer ends the contract. The old reductions for resignation were removed.
Is UAE gratuity calculated on basic or total salary?
On the last basic wage. Housing, transport and other allowances are not included unless your contract says otherwise.
What if I worked less than one year?
No gratuity is due before one full year of continuous service.
Is there a maximum gratuity?
Yes. The total gratuity cannot exceed two years of wage. The calculator applies this cap automatically.
Does unpaid leave count as service?
No. Days of unpaid absence are not counted. Enter them under "More options" to remove them from your service.
Does this apply in DIFC or ADGM?
No. The DIFC and ADGM free zones have their own employment laws and savings schemes. This calculator follows the federal Labour Law used by most private-sector employers.
Does this apply to UAE nationals?
UAE nationals in the private sector are usually covered by the pension system (GPSSA) instead of gratuity. This calculator is for expatriate employees.
This calculator gives an estimate based on the law. Your contract, an optional savings scheme your employer joined, or a court decision can change the amount. For a dispute, contact MOHRE or a lawyer.
Last verified on 2026-11-07 against UAE Federal Decree-Law No. 33 of 2021, Article 51.