🇦🇪 UAE Gratuity Calculator
Enter your last basic salary – not the full package – and your joining and leaving dates. We apply Federal Decree-Law No. 33 of 2021, including partial years and the two-year cap.
Quick answer: UAE gratuity is 21 days of basic salary for each of the first 5 years and 30 days for each year after, capped at 2 years’ salary. For example, AED 10,000 basic for 7 years gives AED 55,000 (AED 35,000 + AED 20,000).
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UAE Gratuity Calculator inputs
Result
End-of-service gratuity
AED 62,808.22
for 7.78 years of service
| First 5 years (21 days/year) | AED 35,000.00 |
| After 5 years (30 days/year) | AED 27,808.22 |
| Total | AED 62,808.22 |
- Daily basic wage
- AED 333.33
- Service
- 2,840 days
- Cap (2 years’ basic)
- AED 240,000.00
How UAE gratuity works
End-of-service gratuity is a lump sum paid by private-sector employers in the UAE when employment ends, provided you have completed at least one year of continuous service. It is calculated on your last basic salary, not your total package.
Daily wage = Basic ÷ 30 · Gratuity = (21 × daily × first 5 years) + (30 × daily × years after 5) · Maximum = 24 × Basic
Worked example
An employee with a basic salary of AED 10,000 leaves after exactly 7 years:
- Daily wage: 10,000 ÷ 30 = AED 333.33
- First 5 years: 5 × 21 × 333.33 = AED 35,000
- Next 2 years: 2 × 30 × 333.33 = AED 20,000
- Total gratuity: AED 55,000 (below the cap of AED 240,000)
Key rules
- Minimum service: one full year – below that, no gratuity is due.
- Partial years: paid in proportion to the days worked.
- Unpaid leave: days of unpaid absence are not counted as service.
- Resignation: no reduction under the 2021 law; gratuity must normally be paid within 14 days of the contract ending.
- Deductions: amounts you owe your employer can be deducted from gratuity.
Estimates for educational purposes based on Federal Decree-Law No. 33 of 2021. Check your contract and confirm with your employer or MOHRE.
Frequently asked questions
How is gratuity calculated in the UAE?
Daily wage = basic monthly salary ÷ 30. You receive 21 days’ wage for each of the first five years of service and 30 days’ wage for every additional year, with partial years counted proportionally. The total cannot exceed two years’ basic salary.
Do I get gratuity if I resign?
Yes. Under the new UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees who resign after at least one year of continuous service receive full gratuity – the old reductions for resignation no longer apply to private-sector contracts.
Is gratuity based on basic or total salary?
Gratuity is based on your last basic salary only. Housing, transport and other allowances are not included unless your contract says otherwise.
Does this apply to free zones and government jobs?
This calculator follows the federal private-sector law. DIFC and ADGM have their own employment laws and savings schemes, and government employees follow separate pension rules – check with your employer or HR.
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