About the UAE Gratuity Calculator
This UAE gratuity calculator estimates the end-of-service benefit a private-sector employee is owed under Federal Decree-Law No. 33 of 2021 (the UAE Labour Law). Enter your last basic monthly salary and your start and end dates, and it returns the gratuity in dirhams, your length of service and the daily wage used in the calculation.
It is meant for employees planning a resignation or job move, workers checking a final settlement, and HR teams preparing an end-of-service quote. The law gives full-time employees who complete at least one year of continuous service 21 days of basic wage for each of the first five years and 30 days for each additional year, with partial years counted pro rata, and caps the total at two years’ wages.
Only basic salary counts — housing, transport and other allowances are excluded — and days of unpaid absence are deducted from service. Under the current law resignation no longer reduces gratuity. DIFC and ADGM free-zone employees, government employees and part-time workers follow different rules, so treat this as an estimate for mainland private-sector contracts.
With the default inputs, the end-of-service gratuity is AED 60,095.89. Change any value above to recalculate instantly.
How to use the uae gratuity calculator
- 1Enter your last basic monthly salary, excluding allowances.
- 2Enter your employment start date and last working day.
- 3Add any days of unpaid leave or absence during employment.
- 4Choose the daily wage basis your employer uses (÷ 30 is the norm).
- 5Read your gratuity and check whether the 24-month cap applies.
Formula and method
Service in years (Y) is the number of days between your start date and last working day, minus unpaid absence days, divided by 365. If Y is under one year there is no entitlement. For the first five years you earn 21 days of basic wage per year; every year after that earns 30 days, and fractions of a year are paid pro rata.
The daily wage (W) is the last basic monthly salary divided by 30, which is the convention most employers and settlement calculations use; you can switch to basic × 12 ÷ 365 if your employer uses it. The total can never exceed two years’ (24 months’) basic wage. Allowances are excluded, and deductions the employer is legally owed can be set off against the gratuity.
- Basic
- Last basic monthly salary (no allowances)
- W
- Daily basic wage
- Y
- Years of continuous service, excluding unpaid absence
Worked examples
7.5 years on AED 10,000 basic
From 1 March 2019 to 1 September 2026 is 2,741 days, or 7.51 years. The daily wage is 10,000 ÷ 30 = AED 333.33. The first five years earn 105 days (AED 35,000) and the remaining 2.51 years earn 30 days each (about AED 25,096), for a total of roughly AED 60,096.
Exactly 3 years on AED 8,000 basic
1,095 days of service is exactly three years, all within the first five years, so the employee earns 3 × 21 = 63 days. At AED 8,000 ÷ 30 = AED 266.67 a day, the gratuity is AED 16,800.
28 years of service hits the cap
Twenty-eight years would earn 105 + 23 × 30 = 795 days, worth about AED 530,000 at AED 666.67 a day. The law caps gratuity at 24 months’ basic, so the payout is limited to 24 × 20,000 = AED 480,000.
Frequently asked questions
How is gratuity calculated in the UAE?+
Private-sector employees with at least one year of service receive 21 days of basic wage for each of the first five years and 30 days for each year after that, pro rata for part years, capped at two years’ total wage. Only basic salary is used, not allowances.
Do I get gratuity if I resign in the UAE?+
Yes. Under Federal Decree-Law No. 33 of 2021 the old reductions for resigning (one-third or two-thirds of gratuity for short service) no longer apply to private-sector contracts, so employees who resign after one year receive the full amount.
Is there gratuity for less than one year of service?+
No. An employee must complete at least one year of continuous service to be entitled to end-of-service gratuity. After the first year, partial years are paid proportionally.
Does unpaid leave affect gratuity?+
Yes. Days of unpaid absence are not counted as service when calculating gratuity, so they reduce the service period. Paid annual leave and sick leave on pay still count.
When must gratuity be paid?+
The employer must settle all end-of-service dues, including gratuity, within 14 days of the end of the employment relationship under the UAE Labour Law.
Does this apply to DIFC or government employees?+
No. DIFC employees are covered by the DEWS savings scheme, ADGM has its own employment regulations, and federal and local government employees follow pension and HR laws. UAE and GCC nationals in the private sector usually receive pension contributions instead.
Results are general estimates and not legal advice. Laws vary by jurisdiction — consult a qualified attorney.