UAE gratuity calculator
Work out end of service benefits for a private-sector job in the UAE from the basic salary and the dates of service. Rules checked 15 November 2026.
How it is worked out
Runs in your browser. Nothing you type is sent or stored. A guide, not legal advice.
Examples on a basic salary of AED 10,000
| Service | Gratuity days | Gratuity |
|---|---|---|
| Under 1 year | 0 | No gratuity |
| 1 year | 21 | AED 7,000 |
| 3 years | 63 | AED 21,000 |
| 5 years | 105 | AED 35,000 |
| 7 years | 165 | AED 55,000 |
| 10 years | 255 | AED 85,000 |
The rule
Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), Article 51, gives a full-time foreign employee who has completed at least one year of continuous service an end of service benefit based on the last basic wage:
- 21 days’ basic wage for each of the first five years of service.
- 30 days’ basic wage for each year after the fifth.
- Part of a year counts in proportion, once the first full year is complete.
- Days of unpaid leave are not counted as service.
- The total cannot be more than two years’ wage.
Questions
How is gratuity calculated in the UAE?
Divide the last basic monthly salary by 30 to get the daily wage. The gratuity is 21 days’ wage for each of the first five years of service and 30 days’ wage for each year after that. Part of a year counts in proportion once one full year is complete.
Is gratuity based on basic salary or total salary?
On the basic salary only. Allowances such as housing, transport and utilities are not included.
Do I get gratuity if I resign?
Yes. Under Federal Decree-Law No. 33 of 2021, in force since 2 February 2022, an employee who resigns after at least one year of continuous service receives the full gratuity. The reductions for resignation in the earlier law no longer apply.
Is there a maximum?
Yes. The total gratuity cannot be more than two years’ wage. This calculator limits it to 24 months of basic salary.
Does unpaid leave count?
No. Days of unpaid leave are taken out of the length of service.
Who is not covered by this calculation?
UAE nationals, who are covered by the pension scheme; employees in the DIFC and ADGM, which have their own employment rules; part-time and other work patterns, which use a different calculation; and employees whose employer has joined the alternative savings scheme. It is a guide and not legal advice.
More free tools
- All free tools
- Invoice generator
- EU VAT calculator
- Profit margin calculator
- Business days calculator
- Freelance hourly rate calculator
- Developer cost calculator
- Number to words converter
- WhatsApp link and QR code generator
- VAT calculator for Sri Lanka and the UAE
- Sri Lanka salary calculator
A free tool by Avenstra Software, a software company in Sri Lanka. We build business software, integrations and AI assistants. Talk to us about your project.