Gratuity Calculator UAE 2026
Work out your end-of-service gratuity under Article 51 of Federal Decree-Law No. 33 of 2021, the UAE labour law. Enter your basic salary and dates to see your amount: 21 days of basic pay for each of the first five years, 30 days for each year after, pro rata for part years and capped at two years' pay. Resigning does not reduce it.
Basic only, as in your contract. Housing, transport and other allowances do not count.
Unpaid days are not counted as service (Article 51(4)). Paid annual and sick leave still count.
How UAE gratuity is calculated
The formula is set by Article 51 of the labour law. MOHRE applies it to every private-sector employee on the mainland and in free zones that follow the federal law:
Gratuity = daily wage × (21 × years up to 5 + 30 × years after 5)
Maximum = monthly basic × 24
- One year minimum. Nothing is due until you finish one year of continuous service. After that, part years are paid in proportion to the time worked.
- Basic salary only. The last basic wage in your contract. Housing, transport, phone and other allowances are not included.
- Unpaid days are left out. Unpaid leave and unpaid absence do not count as service. Paid annual and sick leave do.
- Two-year cap. The total can never exceed 24 months of basic salary, which you reach after about 25.5 years.
- Same amount whatever the reason. Resignation, termination, contract expiry and Article 44 dismissal all give the same figure. The employer may deduct amounts you owe under the law or a court judgment.
- Paid within 14 days of the contract ending, with your other dues (Article 53).
- Part-time work is paid in proportion to contracted hours against full-time hours (Executive Regulation, Article 30).
About the daily wage. The law does not fix a divisor. Most employers and MOHRE's savings scheme use basic ÷ 30 (the scheme's 5.83% a month is 21 days ÷ 360). Some use basic × 12 ÷ 365, which pays about 1.4% less. The calculator shows both, with ÷ 30 as the headline figure.
Gratuity worked examples
Whole years of service, daily wage = basic ÷ 30. These are the same figures the calculator gives and our tests check.
| Basic salary | Service | Days of pay | Gratuity |
|---|---|---|---|
| AED 5,000 | 1 year | 21 | AED 3,500.00 |
| AED 8,000 | 3 years | 63 | AED 16,800.00 |
| AED 10,000 | 5 years | 105 | AED 35,000.00 |
| AED 10,000 | 7 years | 165 | AED 55,000.00 |
| AED 15,000 | 10 years | 255 | AED 127,500.00 |
| AED 20,000 | 30 years | 855 (capped at 720) | AED 480,000.00 |
Step by step: AED 10,000 basic, 7 years
Daily wage: 10,000 ÷ 30 = AED 333.33.
First 5 years: 5 × 21 = 105 days. Next 2 years: 2 × 30 = 60 days.
Total: 165 days × AED 333.33 = AED 55,000. The cap is AED 240,000, so it does not apply.
Resignation and termination: new law and old law
Federal Decree-Law 33 of 2021 replaced Federal Law No. 8 of 1980 on 2 February 2022. Many older articles still quote the 1980 rules.
| Situation | Old law (1980) | Current law (2021) |
|---|---|---|
| Resign after 1 to 3 years | One third (unlimited contract) | Full gratuity |
| Resign after 3 to 5 years | Two thirds (unlimited contract) | Full gratuity |
| Resign before a fixed-term contract ends | Nothing if under 5 years | Full gratuity |
| Dismissed for serious misconduct | Gratuity lost (Article 120) | Full gratuity, less lawful deductions |
| Terminated by employer | Full gratuity | Full gratuity |
Who this calculator covers
Expatriate employees in the UAE private sector under the federal labour law: mainland companies and free zones that apply it. It does not cover:
- DIFC: gratuity was replaced by monthly employer contributions to DEWS or another qualifying scheme in 2020.
- ADGM: its own Employment Regulations apply, with a different gratuity formula.
- UAE nationals: covered by the pensions law.
- Government employees and domestic workers: outside Decree-Law 33 of 2021 (Article 3).
- Employers in MOHRE's voluntary savings scheme: gratuity stops accruing from the date they join, and service before that date is worked out with this formula.
Want to read more first? Our UAE gratuity calculation guide covers more scenarios, and what to do with your gratuity covers the money side.
Gratuity calculator FAQ
How is gratuity calculated in the UAE?
Under Article 51 of Federal Decree-Law No. 33 of 2021, a foreign full-time employee with at least one year of continuous service gets 21 days of basic salary for each of the first five years and 30 days for each year after that. Part years are paid pro rata. The total cannot exceed two years' basic salary.
Do I get gratuity if I resign?
Yes. The 2021 law makes no distinction between resigning and being terminated. Once you have one year of continuous service you get the full amount. The old one-third and two-thirds reductions for resignation came from the 1980 law and stopped applying when the new law took effect on 2 February 2022.
Is gratuity based on basic salary or total salary?
Basic salary only: the last basic wage you were entitled to, as written in your contract. Housing, transport and other allowances are excluded (Article 51(5) and the definition of basic wage in Article 1).
What is the daily wage for gratuity: basic ÷ 30 or basic × 12 ÷ 365?
The law does not say. Neither Decree-Law 33 of 2021 nor its Executive Regulation (Cabinet Resolution No. 1 of 2022) fixes a divisor. Basic ÷ 30 is the common practice and matches MOHRE's savings scheme rate of 5.83% a month (21 days ÷ 360). Some employers use basic × 12 ÷ 365, which gives about 1.4% less. Our calculator shows both as a range.
What is the maximum gratuity in the UAE?
Two years' basic salary, which is 24 times your monthly basic (Article 51(6)). With 21 days for the first 5 years and 30 days after, you reach the cap after about 25.5 years of service.
Do I get gratuity in my first year?
No. You need one full year of continuous service. After that, part years count pro rata. Unpaid leave and unpaid absence days do not count towards service (Article 51(4)).
Can my employer take away my gratuity if I am dismissed under Article 44?
Not under the 2021 law. Article 44 lets an employer dismiss without notice for serious breaches, but unlike the old law it does not remove gratuity. The employer may deduct amounts you owe under the law or a court judgment (Article 51(7)). If you disagree with a deduction, you can file a complaint with MOHRE.
When must my employer pay my gratuity?
Within 14 days of the contract ending, together with your other dues (Article 53).
Does this calculator work for DIFC or ADGM?
No. DIFC replaced gratuity with monthly employer contributions to DEWS or another qualifying scheme from 2020, and ADGM has its own Employment Regulations with different rules. Use your free zone's own rules. Most other free zones and the mainland follow the federal law this calculator uses.
Do UAE nationals get gratuity?
UAE nationals receive end-of-service benefits under the pensions and social security law instead (Article 51(1)), so this calculator is for expatriate employees.
Last checked: October 2026
Sources we checked every figure against:
This is an estimate, not legal or financial advice. Your contract, unpaid days and any lawful deductions change the final figure. Confirm with your HR team or MOHRE (600 590000).
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