UAE end-of-service gratuity calculator
Worked out under Federal Decree-Law No. 33 of 2021, which replaced the 1980 labour law on 2 February 2022. The rules changed substantially that day — most calculators still apply the old ones.
Based on basic wage only, before any lawful deductions.
- Service period—
- Unpaid leave excluded—
- Daily basic wage—
- First five years—
- Years beyond five—
- Total entitlement—
- Expressed in months—
- Part-time pro-rating—
- Gratuity payable—
This is a calculator, not legal advice, and it cannot see your contract. Gratuity disputes turn on facts a calculator does not have — how your contract defines basic wage, whether your service was genuinely continuous, what your employer recorded with MOHRE. If real money is at stake, take the figure to a UAE-qualified lawyer or to MOHRE rather than acting on it alone.
How the calculation works
Article 51 of Federal Decree-Law No. 33 of 2021 sets one formula for all private-sector employees under the federal law:
| Period of service | Entitlement per year | Basis |
|---|---|---|
| Each of the first five years | 21 days | Basic wage |
| Each year after the fifth | 30 days | Basic wage |
| Below one year | Nothing | No statutory entitlement |
| Overall ceiling | Two years' wage | Article 51(3) |
The daily wage used here is your monthly basic divided by 30, which is the convention used throughout UAE practice and makes 21 days read as 0.7 of a month. Part years are paid pro rata — there is no rounding down to whole years.
A worked example
Basic wage 10,000 AED, seven years and six months of service, no unpaid leave:
- Daily basic = 10,000 ÷ 30 = 333.33 AED
- First five years = 5 × 21 = 105 days
- Remaining 2.5 years = 2.5 × 30 = 75 days
- Total = 180 days × 333.33 = 60,000 AED, which is six months of basic wage
Under the 1980 law, an employee on an unlimited contract who resigned lost a third of their gratuity between one and three years of service, and a third between three and five. That scale was repealed on 2 February 2022 and does not exist in the current law. Resignation and termination now pay exactly the same. If a calculator asks whether your contract is "limited or unlimited", it is applying a distinction the law abolished — all contracts became fixed-term.
What this calculator does not include
Gratuity is one line on a final settlement. These are separate entitlements and are not calculated here:
- Unused annual leave, paid at basic wage for untaken days
- Notice pay, where notice was not worked
- Outstanding wages, overtime and commission up to the last working day
- Repatriation air fare, where the contract provides for it
- Compensation for arbitrary dismissal, which is a separate claim of up to three months' wage
Everything owed to you, gratuity included, must be paid within 14 days of the employment ending.
If you are in DIFC or ADGM
This calculator does not apply to you. Both financial free zones run their own employment regimes outside the federal law. DIFC replaced end-of-service gratuity with the DEWS workplace savings scheme, a funded defined-contribution arrangement rather than a lump sum calculated on exit. ADGM has its own separate regulations. Check which law your contract is under before relying on any federal figure.
Common questions
Is gratuity calculated on basic salary or total salary?
Basic wage only. Article 51 is explicit, and housing, transport, mobile and any other allowance is excluded. This is where most disagreements start, because a package advertised as 20,000 AED may have a basic of only 8,000 — and the gratuity follows the 8,000. Check how your contract splits it.
Do I lose gratuity if I resign?
No. Since 2 February 2022 an employee who resigns after completing one year of continuous service receives the same gratuity as one whose contract is ended by the employer. The old reductions of one-third and two-thirds were repealed with the 1980 law and no longer apply to anyone.
What if I have not completed a full year?
There is no statutory gratuity below one year of continuous service. Other amounts may still be owed — unused leave, outstanding wages, notice pay — and those do not depend on completing a year.
Does unpaid leave reduce my service period?
Yes. Days of absence without pay are excluded from the period of service. Paid annual leave and paid sick leave are not, and count in full.
Can my employer refuse to pay because I was dismissed?
Summary dismissal under Article 44 does not automatically cancel accrued gratuity. The forfeiture provision in the old law was not carried into the 2021 decree-law. An employer withholding gratuity should be asked to state the legal basis in writing, and this is a situation to take advice on rather than accept.
How long does my employer have to pay?
Fourteen days from the end of the employment relationship, for gratuity and every other amount owed in the final settlement.
Reviewed 2026-09-19 against Federal Decree-Law No. 33 of 2021 and its executive regulations. General guidance only and not legal advice — see the terms and disclaimer.