UAE Gratuity Calculator
Estimate end-of-service gratuity under UAE labour law — 21 days per year for the first 5 years, 30 days after.
Estimate end-of-service gratuity
Modelled on UAE labour law as of 2026. Amounts in AED.
Basic salary only — exclude housing, transport, and other allowances.
Decimals allowed (e.g. 3.5 years). Minimum 1 year for eligibility.
How it's calculated
21 days of basic salary per year for the first 5 years, then 30 days per year after — capped at 2 years' total basic salary. Daily wage = basic salary ÷ 30.
Estimated gratuity
AED 36,000.45
- Daily wage
- AED 266.67
- First 5 yrs (21 days/yr)
- AED 28,000.35
- After 5 yrs (30 days/yr)
- AED 8,000.10
- Statutory cap (2 yrs' salary)
- Not reached
- • Based on 21 days of basic salary per year for the first 5 years and 30 days per year after, using daily wage = basic salary ÷ 30.
- • Gratuity is calculated on basic salary only (allowances excluded) and prorated for partial years.
- • Unpaid absence days may be excluded from service, and unlimited/limited contract history or agreed schemes can change the outcome.
Gratuity calculator FAQs
How is end-of-service gratuity calculated in the UAE?+
Under Federal Decree-Law No. 33 of 2021, full-time private-sector employees earn 21 days of basic salary per year for the first 5 years of service and 30 days per year after that, capped at 2 years’ total basic salary. The daily wage is the monthly basic salary divided by 30.
Who is eligible for gratuity?+
Employees who complete at least one year of continuous service are entitled to gratuity when their employment ends. Periods of unpaid absence may be excluded from the service calculation.
Is gratuity calculated on basic salary or total salary?+
On basic salary only. Housing, transport, and other allowances are excluded — which is why the basic/allowances split in your contract matters.
Does resignation reduce my gratuity?+
Under the current law (effective February 2022), full gratuity entitlement no longer depends on whether you resigned or were terminated, unlike the old limited/unlimited contract rules. Specific cases can still vary — check with an advisor.
Do free-zone employees get the same gratuity?+
Most free zones follow the federal labour law, but some (like DIFC and ADGM) run their own employment regimes with workplace savings schemes instead of gratuity. Confirm which regime applies to your employment.
Need a Professional Assessment?
This calculator gives you a quick estimate only. Our consultants review your actual circumstances — structure, contracts, elections, and exemptions — and give you advice you can act on with confidence.
Disclaimer: This calculator provides an estimate based on standard UAE regulations. Actual tax or employment outcomes may vary depending on your specific circumstances, applicable laws, exemptions, elections, and regulatory changes. Please consult our experts before making financial, tax, or employment decisions.