Use this free UAE gratuity calculator to estimate your end of service benefits under the UAE Labour Law, based on your basic salary and years of service.
UAE Labour Law · Decree-Law 33/2021UAE Gratuity Calculator
Estimate for private-sector employees under UAE Labour Law. DIFC and ADGM have their own rules, and your contract may give more.
Our free UAE gratuity calculator estimates the end of service benefits you will receive when you leave a private-sector job in the UAE. First, enter your last basic salary and your joining and leaving dates. Then the calculator applies the UAE Labour Law rules, including the two-year cap, and shows a full breakdown.
What Is End of Service Gratuity in the UAE?
End of service gratuity is a lump-sum payment your employer must pay when your employment ends. It rewards you for your years of service and is paid on top of your final salary and unused annual leave.
The rules come from Federal Decree-Law No. 33 of 2021, the current UAE Labour Law. It applies to private-sector employees on the mainland and in most free zones. However, UAE nationals usually receive a pension instead.
How the UAE Gratuity Calculator Works
To qualify, you need at least one year of continuous service. After that, gratuity is based on your last basic salary and builds up in two stages.
First, you earn 21 days of basic salary for each year.
Then you earn 30 days of basic salary for each further year.
Finally, the total cannot be more than two years' basic salary.
The formula
Gratuity = (Basic salary ÷ 30) × (21 × first 5 years + 30 × years after 5)
UAE Gratuity Calculator Examples
For example, here are three employees. In each case, the daily wage is the basic salary ÷ 30.
His basic salary is AED 6,000, so his daily wage is AED 200.
- First: 5 × 21 days 105 days
- Then: 105 × AED 200 AED 21,000
- Finally: cap check Not reached
Similarly, her basic salary is AED 6,000, but she worked 7 years.
- First: 5 × 21 days AED 21,000
- Then: 2 × 30 days AED 12,000
- Finally: total AED 33,000
His basic salary is AED 10,000 after 30 years. Although the formula gives AED 285,000, the cap is two years' salary.
- First: formula AED 285,000
- Then: cap 24 × 10,000 AED 240,000
- Finally: paid AED 240,000
UAE Gratuity Quick Reference Table
Estimated gratuity using basic salary ÷ 30. In each case, partial years are not included.
| Basic salary | 1 year | 3 years | 5 years | 10 years | 20 years |
|---|---|---|---|---|---|
| AED 3,000 | 2,100 | 6,300 | 10,500 | 25,500 | 55,500 |
| AED 5,000 | 3,500 | 10,500 | 17,500 | 42,500 | 92,500 |
| AED 8,000 | 5,600 | 16,800 | 28,000 | 68,000 | 148,000 |
| AED 12,000 | 8,400 | 25,200 | 42,000 | 102,000 | 222,000 |
| AED 20,000 | 14,000 | 42,000 | 70,000 | 170,000 | 370,000 |
All amounts in AED, rounded to the nearest dirham.
Rules That Affect Your Gratuity
- Resigning: unlike the old law, the current law does not reduce gratuity when you resign. Therefore, you get the same amount as if your employer ended the contract.
- Unpaid leave: days of unpaid absence are not counted as service, so they lower your gratuity slightly.
- Deductions: your employer may deduct money you legally owe, such as a loan or salary advance.
- Payment deadline: all end of service dues must be paid within 14 days of your contract ending. Otherwise, you can file a complaint with MOHRE.
The Optional End of Service Savings Scheme
Under Cabinet Resolution No. 96 of 2023, employers can choose to replace gratuity with monthly contributions to an approved investment fund. In that case, the employer pays 5.83% of basic salary for staff with under five years of service and 8.33% after five years. However, the scheme is optional for employers, so most employees still receive the standard gratuity shown on this page.
How to Use the UAE Gratuity Calculator
- First, enter your last basic monthly salary in AED.
- Next, select your joining date and last working day.
- Then add any days of unpaid leave.
- After that, keep the daily wage method at ÷ 30 unless your employer uses another method.
- Finally, press Calculate Gratuity to see your estimate and the full breakdown.
Plan What to Do With Your Gratuity
Once you know your gratuity, these tools can help you plan your next step. Alternatively, browse all our financial calculators.
UAE Gratuity Calculator FAQs
How is gratuity calculated in the UAE?
First, divide your basic monthly salary by 30 to get your daily wage. Then multiply it by 21 days for each of your first five years and 30 days for each year after that. However, the total cannot be more than two years' basic salary.
Do I get gratuity if I resign in the UAE?
Yes. Under the current UAE Labour Law, you receive the full gratuity whether you resign or your employer ends your contract, as long as you have completed at least one year of service.
Is UAE gratuity calculated on basic or gross salary?
It is calculated on your last basic salary only. Therefore, housing, transport and other allowances are not included, unless your contract says otherwise.
Can I get gratuity with less than one year of service?
No. You must complete at least one year of continuous service with the same employer. Otherwise, no end of service gratuity is due.
When must my employer pay my gratuity?
Your employer must pay all end of service dues, including gratuity, within 14 days of your contract ending. In addition, your employer may deduct any amounts you legally owe.
Is this UAE gratuity calculator valid in DIFC or ADGM?
No. DIFC uses its own savings plan, called DEWS, and ADGM has separate employment rules. Similarly, employees whose employer has joined the new savings scheme follow different rules.
Disclaimer: This calculator and guide give an estimate for general information only and are not legal advice. Your final gratuity may differ based on your contract and circumstances. Moreover, rules differ in DIFC and ADGM, so contact your employer or MOHRE for an official answer.