UAE Gratuity Calculator
Calculate your end-of-service gratuity under UAE Federal Decree-Law No. 33 of 2021. Instant, accurate, and completely free.
Basic salary only — excludes housing, transport, and other allowances
How It Works
Three steps to calculate your UAE gratuity
Enter Details
Input your basic salary, employment dates, contract type, and reason for leaving.
Calculate
We apply the exact formula from Federal Decree-Law No. 33 of 2021 with all applicable rules.
Plan Ahead
View your breakdown, compare projections for staying longer, and print your results.
UAE Gratuity Rules
Key rules under Federal Decree-Law No. 33 of 2021
When you ARE entitled
- 1+ year of continuous service
- Employer terminates your contract
- You resign (with possible reduction)
- Contract expires and is not renewed
- Mutual termination agreement
When you are NOT entitled
- Less than 1 year of service
- Terminated for gross misconduct (Article 44)
- Abandoning work without valid reason
- Working illegally without a valid permit
What counts as basic salary
- Base/basic salary only
- Excludes housing allowance
- Excludes transport allowance
- Excludes bonuses & commissions
- Excludes overtime pay
This calculator provides estimates for informational purposes only and does not constitute legal advice. UAE laws and regulations may change. Consult a qualified professional or contact MOHRE for official guidance.
Frequently Asked Questions
How is end-of-service gratuity calculated in the UAE?
Under Federal Decree-Law No. 33 of 2021, gratuity is calculated based on your basic salary only. For the first 5 years, you receive 21 days of basic salary per year. For each additional year beyond 5, you receive 30 days per year. Partial years are prorated.
Am I entitled to gratuity if I resign?
Yes. Under the current UAE labour law (Federal Decree-Law No. 33 of 2021), all employees with 1 or more years of continuous service receive their full gratuity regardless of whether they resign or are terminated. The old resignation reduction rules (1/3 for 1-3 years, 2/3 for 3-5 years) applied only to unlimited contracts, which no longer exist — all contracts are now fixed-term.
What is the maximum gratuity I can receive?
The total gratuity amount is capped at 2 years of your basic salary (24 months), regardless of how long you've worked. This cap applies after the standard calculation.
Does gratuity apply to part-time employees in the UAE?
Yes. Under the new UAE labour law, part-time employees are entitled to gratuity calculated on a pro-rata basis according to their actual working hours compared to full-time hours.
Is gratuity taxable in the UAE?
No. The UAE does not impose personal income tax, so your gratuity payment is received in full without any tax deductions.
When should my employer pay my gratuity?
Your employer must pay your gratuity within 14 days of your last working day. If they fail to pay within this period, you can file a complaint with MOHRE (Ministry of Human Resources and Emiratisation).
What changed with the new UAE labour law (2022)?
Federal Decree-Law No. 33 of 2021 replaced the old labour law in February 2022. Key changes: all contracts are now fixed-term (unlimited contracts no longer exist), the old resignation reduction (1/3 and 2/3) was abolished so all employees get full gratuity, freelancers and part-timers have clearer entitlements, and the Savings Alternative Scheme was introduced as an optional replacement for traditional gratuity.
Does my gratuity include housing or transport allowance?
No. Gratuity is calculated only on your basic salary. All allowances — housing, transport, phone, education, and any other benefits — are excluded from the calculation.
Can I lose my gratuity for gross misconduct?
Yes. Under Article 44 of the labour law, an employer can terminate employment without notice or gratuity in specific cases of gross misconduct, such as assault, fraud, absence without valid reason for more than 20 intermittent days per year, or disclosing confidential information.
How does gratuity work for free zone employees?
Most UAE free zones (DIFC, ADGM, JAFZA, etc.) follow the federal labour law for gratuity calculations. However, DIFC has its own employment law (DIFC Law No. 2 of 2019) with a similar but distinct gratuity framework. Always check your specific free zone's regulations.
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