UAE Gratuity Calculator

If you work in the UAE private sector, you are entitled to an end-of-service gratuity once you complete one year with your employer. Enter your last basic salary and your dates below to see what you should receive under the UAE Labour Law.

Your employment

Basic salary only. Leave out housing, transport and other allowances.

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Estimated gratuity–

Based on Federal Decree-Law No. 33 of 2021 for private-sector employees. A daily wage is taken as basic salary ÷ 30. Your employer may deduct amounts you legally owe them. DIFC and ADGM employees, government staff and domestic workers follow different rules. This is an estimate, not legal advice.

How UAE gratuity is calculated

Gratuity is set by Article 51 of Federal Decree-Law No. 33 of 2021, which has applied to private-sector employment since 2 February 2022. It is worked out on your last basic salary, not your total package:

  • Less than 1 year of service: no gratuity.
  • First 5 years: 21 days of basic wage for each year.
  • After 5 years: 30 days of basic wage for each additional year.
  • Part years are paid pro-rata, as long as you have completed at least one year.
  • Cap: the total cannot be more than two years of basic wage.
  • Unpaid leave days are not counted as service.

Example

Your basic salary is AED 10,000 a month and you worked for 7 years. Your daily wage is AED 10,000 ÷ 30 = AED 333.33. For the first 5 years you get 5 × 21 × 333.33 = AED 35,000. For the next 2 years you get 2 × 30 × 333.33 = AED 20,000. Your total gratuity is AED 55,000.

Does resigning reduce your gratuity?

Not under the current law. Since February 2022, an employee who resigns after completing one year receives the full gratuity. Under the old law, resigning from an unlimited contract reduced the payment, so if part of your service falls before 2 February 2022, the old rules may still affect that earlier period.

Who is not covered

Employees in the DIFC and ADGM free zones follow their own employment laws (the DIFC uses the DEWS savings scheme instead of gratuity). Federal and local government employees, and domestic workers, are also covered by separate rules. Employers may deduct amounts an employee legally owes them from the gratuity.

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