UAE End of Service Gratuity Calculator
Calculate your end-of-service benefits according to UAE Federal Decree-Law No. 33 of 2021. This free calculator helps you determine your gratuity pay based on your salary, employment period, and contract type.
How Gratuity is Calculated in UAE
Under UAE Labor Law, employees are entitled to end-of-service gratuity based on their years of service:
- Less than 1 year: No gratuity
- 1-5 years: 21 days of basic salary per year
- More than 5 years: 21 days for first 5 years + 30 days for each additional year
Contract Types
Limited Contract: If you resign before contract completion, gratuity is calculated at reduced rates (no gratuity for less than 1 year, 1/3 for 1-3 years, 2/3 for 3-5 years, full amount after 5 years).
Unlimited Contract: Full gratuity is paid regardless of who terminates the contract (employer or employee), provided you've completed at least 1 year of service.
Frequently Asked Questions
What is included in basic salary for gratuity calculation?
Only the basic salary is used for gratuity calculations. Allowances (housing, transportation, etc.) are not included.
When is gratuity paid?
Gratuity must be paid within 14 days of the end of employment, along with any remaining salary and leave balance.
Can gratuity be deducted?
Yes, employers can deduct amounts owed by the employee (loans, advances, damages) from the gratuity payment, but only with proper documentation.
Legal Reference
This calculator is based on Federal Decree-Law No. 33 of 2021 on the Regulation of Labor Relations in the UAE, which came into effect on February 2, 2022. It replaces the previous Federal Law No. 8 of 1980.