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UAE Labour Law · End of Service

UAE Gratuity Calculator

Estimate your end-of-service gratuity under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021). Enter your last basic salary and length of service — it calculates instantly.

Calculate your gratuity

Based on your basic salary only (not allowances).

Estimated gratuity
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Enter your last basic monthly salary to begin.

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    The formula

    How UAE end-of-service gratuity is calculated

    Under the current UAE Labour Law, gratuity is based on your last basic salary — allowances such as housing and transport are excluded. You must complete at least one full year of continuous service to qualify.

    First 5 years

    21 days of basic salary for each completed year of service.

    After 5 years

    30 days of basic salary for each additional year beyond five.

    Daily wage

    Your monthly basic salary divided by 30 gives the daily wage used in the 21 / 30-day formula.

    Maximum cap

    The total gratuity can never exceed two years' total wage, however long you worked.

    Good to know

    Resignation, eligibility and payment

    • Resignation no longer cuts your gratuity. Under Federal Decree-Law No. 33 of 2021, the old one-third / two-thirds reductions for resigning were removed — complete one year and you get the full amount.
    • Under one year of service means no gratuity is due.
    • Partial years count. After the first year, additional months are calculated on a pro-rata basis.
    • Payment is due within 14 days of your last working day, whatever the reason for leaving.
    • Unpaid leave is excluded from your total length of service.
    Questions

    UAE gratuity calculator FAQs

    How is gratuity calculated in the UAE?
    Under the current UAE Labour Law, end-of-service gratuity is based on your last basic salary. You earn 21 days of basic pay for each of the first five years of service, and 30 days of basic pay for each year after five years. The total is capped at two years' pay.
    Is UAE gratuity calculated on basic salary or total salary?
    It is calculated on the basic salary only. Housing, transport, commission and other allowances are excluded from the gratuity calculation.
    How many years do I need to get gratuity in the UAE?
    You must complete at least one full year of continuous service to be entitled to end-of-service gratuity. Below one year, no gratuity is due.
    Does resignation reduce my gratuity?
    No. Under Federal Decree-Law No. 33 of 2021, resigning no longer reduces your gratuity. As long as you have completed at least one year, you receive the full amount — the old one-third and two-thirds reductions were removed.
    Is there a maximum gratuity in the UAE?
    Yes. The total end-of-service gratuity must not exceed the equivalent of two years' total wage, regardless of how long you worked.
    When must the employer pay the gratuity?
    The employer must pay end-of-service benefits within 14 days of the employee's last working day, regardless of the reason for leaving.
    Is this calculator official?
    No. This is a free estimate based on the standard formula in the UAE Labour Law. Your final settlement depends on your exact basic salary, service dates, unpaid leave and contract, and is confirmed by your employer or MOHRE.

    This calculator gives a general estimate based on the standard formula in the UAE Labour Law (Federal Decree-Law No. 33 of 2021) for full-time private-sector employees. It is not legal or financial advice. Your final settlement depends on your exact basic salary, service dates, contract type and any unpaid leave, and is confirmed by your employer or MOHRE. Free-zone authorities such as DIFC and ADGM may apply different rules.

    Not sure your employer calculated it right?

    If your gratuity or final settlement looks wrong, or you need help claiming it, our team can review your case and guide you through MOHRE. Send us your basic salary and service dates on WhatsApp.

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