UAE Gratuity Calculator (End of Service)

End-of-service gratuity under Article 51 with the 2-year cap

About UAE Gratuity Calculator

End-of-service gratuity in the UAE private sector follows Article 51 of Federal Decree-Law No. 33 of 2021: 21 days of basic pay for each of the first 5 years of service and 30 days for each year after, pro rata for part-years, capped at two years' wages. Nothing is due under one year of service. Enter your basic salary and service dates to see the amount. Sources: UAE Government Portal (u.ae) end of service benefits page; Federal Decree-Law No. 33 of 2021 (MOHRE). Last checked 21 October 2026.

Formula

Daily wage = annual basic / 365. Gratuity = (min(years,5) x 21 + max(years-5,0) x 30) x daily wage, capped at 24 months of basic.

How It Works

  1. Enter basic monthly salary (no allowances).
  2. Enter first and last day of work and any unpaid leave days.
  3. Read the gratuity, the daily wage and the split between the first 5 years and later years.

Examples

CalculationExpressionResult
AED 3,000 basic, 1 year21 x (3,000 x 12 / 365)AED 2,071.23
AED 5,000 basic, 3 years63 days x 164.38AED 10,356.16
AED 10,000 basic, 10 years105 + 150 days x 328.77AED 83,835.62
AED 8,000 basic, 2,191 days6.0027 yearsAED 35,528.47

Tips

  • Only basic salary counts, not housing or transport allowances.
  • Unpaid leave days do not count toward service.
  • DIFC uses the DEWS savings scheme instead.

Frequently Asked Questions

How is gratuity calculated in the UAE?

21 days of basic salary for each of the first 5 years of continuous service, 30 days for each year after, pro rata for part-years, capped at two years' total wages.

Is gratuity calculated on basic or gross salary?

On basic salary only. Housing, transport and other allowances are excluded.

Do I get gratuity if I resign?

Yes, if you completed at least one year of continuous service. The UAE Government Portal page on end of service benefits grants gratuity on termination and does not make it conditional on resignation.

Do unpaid leave days count toward service?

No. Article 51 excludes days of absence without pay from the service period.

How long does the employer have to pay?

Within 14 days of the end of the contract, according to the UAE Government Portal.

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Further Reading

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