UAE Gratuity Calculator
Enter your basic salary, start date and last working day. Your gratuity appears instantly, with each part of the calculation and the article of law behind it.
Calculate your gratuity
How UAE gratuity is calculated
- Daily wage = monthly basic salary ÷ 30.
- First five years: 21 days' wage for each year of service.
- After five years: 30 days' wage for each additional year.
- Part years are paid pro rata once you complete one year.
- Cap: the total may not exceed two years' basic salary.
Example: basic salary AED 8,000 and 7 years of service. Daily wage 266.67. First five years: 5 × 21 = 105 days = AED 28,000. Two more years: 2 × 30 = 60 days = AED 16,000. Total gratuity: AED 44,000.
Gratuity at a glance
| Service | Basic 5,000 | Basic 8,000 | Basic 10,000 | Basic 15,000 | Basic 20,000 |
|---|---|---|---|---|---|
| 1 year | 3,500 | 5,600 | 7,000 | 10,500 | 14,000 |
| 3 years | 10,500 | 16,800 | 21,000 | 31,500 | 42,000 |
| 5 years | 17,500 | 28,000 | 35,000 | 52,500 | 70,000 |
| 7 years | 27,500 | 44,000 | 55,000 | 82,500 | 110,000 |
| 10 years | 42,500 | 68,000 | 85,000 | 127,500 | 170,000 |
| 15 years | 67,500 | 108,000 | 135,000 | 202,500 | 270,000 |
| 20 years | 92,500 | 148,000 | 185,000 | 277,500 | 370,000 |
The full table for salaries from AED 3,000 to 30,000 and up to 30 years is on the UAE gratuity table page.
Resignation and termination
Under the current law the gratuity is the same whether you resign or the employer ends the contract, as long as you have completed one year of continuous service. It is paid within 14 days of the contract ending. Employees dismissed for one of the gross-misconduct cases in Article 44 keep their gratuity under the current law; see Article 44 dismissal and gratuity after resignation.
What changed from the old law?
Under the old Federal Law 8 of 1980, an employee who resigned before five years lost part of the gratuity. The current Decree-Law 33 of 2021 removed that reduction: resignation, termination by the employer and the end of the contract are all treated the same once you have completed a year of service. You can still lose part of it in two ways: a court ruling in specific cases, or a deduction to settle a debt you owe the employer.
What is not included
- Allowances (housing, transport, phone, commission): only the basic salary counts.
- Unpaid absence days are deducted from your service; see how unpaid leave reduces gratuity.
- Service before 2 February 2022 is calculated under the current law too, because the law in force when the contract ends applies to the whole period.
Special cases
- Part-time and flexible work: the gratuity is prorated by your actual working hours compared with full-time hours, under the executive regulations.
- Emiratis are covered by the pension system instead; see the UAE pension calculator.
- Domestic workers have their own rule; see the domestic worker gratuity calculator.
- Alternative savings scheme: an employer may join a voluntary savings scheme in which the gratuity is invested through licensed funds; you then receive the fund balance instead of the gratuity for that period.
- Death: the gratuity is paid to the employee's heirs.
What else is in your final settlement?
Besides the gratuity, the employer must pay your remaining salary, cash for unused annual leave and, if notice was not served, pay in lieu of notice. Add them up with the final settlement calculator, the annual leave calculator and the notice pay calculator. If payment is late or disputed, you can file a labour complaint through the Ministry of Human Resources and Emiratisation app or website; unresolved cases go to court.
Prefer Arabic? Use the Arabic version of this calculator.
Common cases
Frequently asked questions
Is gratuity calculated on basic or gross salary?
On basic salary only. Allowances such as housing and transport are not included, under Article 51 of Federal Decree-Law No. 33 of 2021.
Do I lose part of my gratuity if I resign?
No. The current law, in force since 2 February 2022, removed the resignation reductions of the old law. An employee who resigns after completing one year of service receives the full gratuity calculated the same way.
What if I worked less than one year?
No gratuity is due before one year of continuous service. After the first year, part years are paid pro rata.
Do unpaid leave days count as service?
No. Days of absence without pay are not counted in the period of service. Enter them in the calculator to deduct them.
When must the employer pay the gratuity?
Within 14 days of the end of the employment contract, together with the employee's other dues.
What is the maximum gratuity?
The total may not exceed two years of basic salary (24 months). An employee reaches this cap after about 25.5 years of service.
Does this apply in DIFC and ADGM?
No. DIFC and ADGM have their own employment laws, and most DIFC employees are covered by the DEWS savings scheme instead of a traditional gratuity. Other free zones such as JAFZA and DMCC follow the federal labour law.
Sources
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations — MOHRE (Article 51, Arabic PDF)
- Emarat Al Youm, citing MOHRE: 21 days for the first five years, 30 days after, 24 months maximum (Arabic, 26 Oct 2026)
- UAE Government portal — End of service benefits (Arabic)
Figures and formulas on this page were last reviewed on 2026-11-03.