UAE Gratuity Calculator
Estimate your end-of-service gratuity under the current UAE Labour Law. Enter your basic salary and employment dates.
Estimated gratuity
AED 45,027
- Service counted
- 6 yr 1 days
- Daily basic wage
- AED 333.33
- First 5 years (21 days/yr)
- AED 35,000
- After 5 years (30 days/yr)
- AED 10,027
- Maximum (24 months' basic)
- AED 240,000
Applies to private-sector employees on limited (fixed-term) contracts under Federal Decree-Law No. 33 of 2021. Under the current law, resigning no longer reduces gratuity. Daily wage is calculated as basic salary ÷ 30.
How UAE gratuity works
Gratuity is a lump sum your employer pays when your contract ends. It is based on your last basic salaryand length of service: 21 days' basic pay per year for the first five years and 30 days' basic pay per year after that, capped at two years' basic salary in total.
Example: with a basic salary of AED 10,000 and 7 years of service, the daily wage is AED 333.33. The first five years earn 5 × 21 × 333.33 = AED 35,000, and the next two earn 2 × 30 × 333.33 = AED 20,000, for a total of AED 55,000.
Frequently asked questions
How is gratuity calculated in the UAE?▾
Under Federal Decree-Law No. 33 of 2021, private-sector employees get 21 days of basic salary for each of the first 5 years of service, and 30 days of basic salary for each year after that. Partial years are paid pro rata, and the total can't exceed 2 years' basic salary.
Do I get gratuity if I resign?▾
Yes. Since the new Labour Law took effect in February 2022, all contracts are fixed-term and resigning no longer reduces your gratuity. You still need at least one year of continuous service to qualify.
Is gratuity calculated on basic or total salary?▾
On your last basic salary only. Housing, transport and other allowances are excluded, which is why many employers keep basic salary at 50–60% of the total package.
Do unpaid leave days count towards gratuity?▾
No. Days of unpaid absence are deducted from your period of service when calculating gratuity.
When must my employer pay gratuity?▾
Employers must settle all end-of-service dues, including gratuity, within 14 days of the employment contract ending.
Does this apply to government or DIFC employees?▾
No. Federal and emirate government employees follow their own pension and gratuity rules, and DIFC employees are covered by the DIFC Employee Workplace Savings (DEWS) scheme instead. Free-zone rules can also differ — check with your employer.
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Results are estimates for guidance only and don't constitute financial advice. Confirm exact figures with your bank or employer.