UAE Gratuity and Unpaid Leave
Enter your unpaid leave days and the calculator deducts them from your service before working out the gratuity, exactly as the law says.
Calculate your gratuity after deducting unpaid leave
The legal rule
Article 51 of Federal Decree-Law No. 33 of 2021 provides that days of absence from work without pay are not counted in the period of service. These days are deducted first, and the gratuity is then calculated on the remaining service with the usual rule: 21 days of basic salary for each of the first five years and 30 days for each year after that.
Example: a basic salary of AED 6,000 and service from 1 January 2021 to 31 December 2025 (five full years), including 90 days of unpaid leave.
Service after the deduction: 4 years and 9 months = 4.75 years.
Daily wage = 6,000 ÷ 30 = AED 200.
Gratuity = 4.75 × 21 × 200 = AED 19,950, instead of AED 21,000 without the unpaid leave.
How much does each unpaid month cost?
| Unpaid days | Service counted | Gratuity (AED) |
|---|---|---|
| 0 | 5 y 0 m 0 d | 21,000 |
| 30 | 4 y 11 m 0 d | 20,650 |
| 60 | 4 y 10 m 0 d | 20,300 |
| 90 | 4 y 9 m 0 d | 19,950 |
| 180 | 4 y 6 m 0 d | 18,900 |
| 365 | 3 y 11 m 25 d | 16,738 |
If your service after the deduction is five years or less, each unpaid month reduces the gratuity by 1.75 days' pay (21 ÷ 12). Above five years, each month reduces it by 2.5 days' pay (30 ÷ 12), because the deduction effectively comes off the end of your service. In the example above: 3 months × 1.75 = 5.25 days × 200 = AED 1,050.
Before you take unpaid leave
- Get written approval stating the number of days and the dates, as a reference when your gratuity is calculated.
- If you are close to completing a year of service or the end of year five, check the effect of the days on those two thresholds first.
- Check the effect on your annual leave balance and your ILOE unemployment insurance.
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Frequently asked questions
Is paid annual leave deducted from service?
No. Annual leave is paid and counts as service. Only days of absence without pay are deducted.
Can unpaid leave cancel my gratuity completely?
Yes, in one case: if your service falls below one year after the unpaid days are deducted, no gratuity is due, because the condition of one year of continuous service is not met.
Does unpaid leave delay the move to 30 days after year five?
Yes. Year five is counted after unpaid days are deducted, so the start of the 30-day rate is delayed by those days.
How do I find my unpaid leave days?
From your employer's leave records or payslips. Ask for a written statement before your contract ends so you can check the gratuity calculation against what your employer pays.
Sources
- Federal Decree-Law No. 33 of 2021 and its amendments — MOHRE consolidated text (Article 51)
- UAE Government portal — end-of-service benefits
Figures and formulas on this page were last reviewed on 2026-11-03.