UAE gratuity calculator
Rules checked 6 Oct 2026
For private-sector employees on the UAE mainland under Federal Decree-Law No. 33 of 2021. DIFC and ADGM have their own rules. UAE nationals are covered by pension instead.
Understand the result: How UAE gratuity is calculated, with five worked examples
How gratuity is calculated in the UAE
End-of-service gratuity for private-sector employees on the UAE mainland is set by Article 51 of Federal Decree-Law No. 33 of 2021. You qualify once you complete one year of continuous service, and the amount depends on your last basic salary and how long you worked.
| Service | Gratuity per year |
|---|---|
| First 5 years | 21 days’ basic wage |
| Each year after 5 | 30 days’ basic wage |
The daily basic wage is your monthly basic salary divided by 30. Part years after the first full year count in proportion, and the total gratuity cannot be more than two years’ wage.
Worked examples
Seven years at AED 9,000 basic.
- Daily wage: 9,000 ÷ 30 = AED 300
- First 5 years: 5 × 21 × 300 = AED 31,500
- Next 2 years: 2 × 30 × 300 = AED 18,000
- Gratuity: AED 49,500
Three years and six months at AED 6,000 basic.
- Daily wage: AED 200
- Service: 3.5 years, all within the first five
- Gratuity: 3.5 × 21 × 200 = AED 14,700
Twenty-eight years at AED 15,000 basic. The formula gives more than AED 360,000, which is two years’ basic wage (24 × 15,000). The cap applies, so the gratuity is AED 360,000.
What counts as your wage
Gratuity is based on your basic salary only. Housing, transport, phone and other allowances, commissions and bonuses are left out, even if they make up most of your package. Check your contract and payslip for the basic figure, because some employers keep basic deliberately low.
What counts as service
- Service starts on your first working day and ends on your last.
- Unpaid leave days are not counted. Enter them in the calculator and they are taken off.
- Service must be continuous. A break between two separate contracts with the same employer may restart the count, depending on how the contracts were handled.
Does resigning reduce gratuity?
Not under the current law. Under the old Labour Law (1980), employees who resigned before five years received a reduced share. Federal Decree-Law No. 33 of 2021 removed those reductions, so an employee who resigns after at least one year receives the full amount from the formula. Our guide on resigning and gratuity explains the change.
When it must be paid
Your employer must pay all end-of-service dues, including gratuity, within 14 days of the contract ending. The employer may deduct amounts you legitimately owe, such as a documented advance or loan.
Who this calculator is not for
- UAE nationals are covered by the pension system instead of gratuity.
- DIFC employees are covered by the DEWS savings plan, and ADGM has its own employment rules.
- Employers in the optional savings scheme (Cabinet Resolution No. 96 of 2023) pay monthly contributions into a fund instead of a lump-sum gratuity for the period they are enrolled. See the end-of-service savings scheme.
Frequently asked questions
I worked 11 months. Do I get anything?
No gratuity is due before one full year of continuous service.
Is gratuity calculated on 30 or 21 days for part-time work?
Part-time workers get gratuity in proportion to the hours they work compared with a full-time employee in the same role.
My contract says “unlimited”. Does that change the formula?
All private-sector contracts had to move to fixed-term contracts by the end of 2023. The formula is the same either way. See limited vs unlimited contracts.
Does annual leave count towards service?
Yes. Paid annual leave counts as service. Unpaid leave does not.