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:
- 21 days of basic salary for each year of the first five years of service
- 30 days of basic salary for each year after the fifth
- A hard cap of two years' total basic wages
A worked example you can verify by hand
Take a worker with a basic salary of AED 10,000 who served exactly 7 years:
| Period | Rule | Days | Calculation | Amount |
|---|---|---|---|---|
| Years 1–5 | 21 days / year | 105 days | 105 × (10,000 ÷ 30) | AED 35,000 |
| Years 6–7 | 30 days / year | 60 days | 60 × (10,000 ÷ 30) | AED 20,000 |
| Total gratuity | AED 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
- Using total package instead of basic salary. If your package is AED 15,000 with AED 5,000 housing, your gratuity is calculated on AED 10,000. This is the #1 error we see.
- Forgetting the cap. Above roughly 14–15 years of service, the two-year cap can start to bite for mid-to-high salaries — check the "cap" line in your result.
- Ignoring unpaid leave. Unpaid absence beyond 10 days per year shortens your counted service.
- Trusting your employer's number blindly. Disputes go to MOHRE, and the law is on your side — calculate independently first.
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.