How is gratuity calculated in the UAE?
End-of-service gratuity is set by Article 51 of Federal Decree-Law No. 33 of 2021, the UAE labour law, which has applied since 2 February 2022. A full-time worker with at least one year of continuous service earns:
- 21 days of basic wage for each of the first five years of service;
- 30 days of basic wage for each year after the first five;
- a pro rata share for any part year, once the first full year is done;
- up to a maximum of two years' wage in total.
The daily wage is your last monthly basic salary divided by 30. So the formula is: basic salary ÷ 30 × days earned. For AED 10,000 basic and 3 years of service, that is 10,000 ÷ 30 × 63 = AED 21,000.
Worked examples on AED 10,000 basic salary
| Service | Days of basic wage | Gratuity |
|---|---|---|
| Under 1 year | 0 | AED 0 |
| 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 |
| 20 years | 555 | AED 185,000 |
| 25.5 years or more | 720 (the cap) | AED 240,000 |
Is gratuity calculated on basic or gross salary?
Basic only. The law uses your last basic wage, so housing, transport, utility, furniture and other allowances are left out, and so are commission and bonuses. Check the basic salary on your MOHRE contract or payslip rather than the total you are paid each month: if most of your package is allowances, your gratuity is based on the smaller figure.
Do you get gratuity if you resign?
Yes. Under the old 1980 labour law, resigning from an unlimited contract cut gratuity to a third after 1 to 3 years and two thirds after 3 to 5 years. The current law has no such reduction, and it applies to any job that ended on or after 2 February 2022, so a worker who resigns after one year gets the full amount, the same as one whose contract ends or who is let go.
What counts as service
- Service runs from your first working day to your last working day, including both.
- Days of unpaid leave or absence do not count, so enter them and the calculator takes them off.
- Paid annual leave, public holidays and paid sick leave count as service.
- Under one year, nothing is due. Temporary work lasting less than a year does not earn gratuity.
Part-time workers
Article 30 of Cabinet Resolution No. 1 of 2022 scales gratuity for part-time workers by contracted hours: the full-time amount is multiplied by your contracted hours as a share of full-time hours. Choose Part-time in the calculator and enter your weekly hours and the full-time hours at your employer (48 a week is the legal maximum for most jobs).
When it must be paid, and what can be taken off
Your employer must pay gratuity within 14 days of the end of the contract, along with any unpaid salary and other dues. They may deduct money you owe them. If it is not paid, file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its app or website, or call 600 590 000.
Who this calculator does not cover
- DIFC employees: since 1 February 2020 employers pay monthly into the DEWS savings plan instead of gratuity. Gratuity earned before that date is still owed.
- ADGM employees: ADGM has its own Employment Regulations. Check them for the cap and for pension or savings schemes that replace gratuity.
- Domestic workers: they are covered by a separate law, Federal Decree-Law No. 9 of 2022. MOHRE has its own domestic worker calculator.
- UAE nationals: they are registered with the General Pension and Social Security Authority (GPSSA) and covered by its pension rules rather than gratuity.
- The voluntary Savings Scheme: under Cabinet Resolution No. 96 of 2023, an employer can pay 5.83% of basic salary a month (8.33% after five years of service) into an approved investment fund instead of paying gratuity at the end. If your employer has enrolled you, your payout is the fund balance.
Salary ÷ 30 or salary × 12 ÷ 365?
Most employers and gratuity calculators work out the daily wage as basic salary divided by 30, which is what this calculator uses. Some payroll systems use basic salary × 12 ÷ 365 instead, which gives a result about 1.4% lower. The calculator shows both figures, so you can see which one your employer has used.
Sources
- UAE government portal: end of service benefits for workers in the private sector (updated 15 October 2026)
- Federal Decree-Law No. 33 of 2021, Article 51, and Cabinet Resolution No. 1 of 2022, Article 30
- MOHRE: labour law FAQ
This is an estimate to help you check your final settlement, not legal advice. Nothing you enter leaves your browser.