UAE Gratuity Calculator
Work out your end-of-service gratuity under the UAE Labour Law from your basic salary and dates of service, with unpaid leave taken out and the 2-year cap applied.
Basic salary only, without housing, transport or other allowances.
Days of unpaid absence are not counted as service.
Gratuity
AED 61,995.43
- Service counted
- 7.7 years
- Days of wage earned
- 185.99 days
- Daily basic wage
- AED 333.33
For 7.7 years of service on a basic salary of AED 10,000.00, your gratuity is AED 61,995.43. Resigning doesn't reduce it under the 2021 Labour Law.
How it's worked out
- Service counted
7 years, 8 months and 12 days7.6995 years - Daily basic wage
AED 10,000.00 ÷ 30 (a month is 30 days, Art. 67)AED 333.33 - First 5 years at 21 days a year
5 × 21105 days - Years after 5 at 30 days a year
2.6995 × 3080.99 days - Gratuity before the cap
185.99 days × AED 333.33AED 61,995.43 - Cap: 2 years' basic wage
AED 10,000.00 × 24AED 240,000.00 (not reached)
- Private-sector employees under Federal Decree-Law 33 of 2021. Government, DIFC and ADGM employees have their own rules.
- Applies to non-UAE nationals; Emiratis are covered by the GPSSA pension instead (Art. 51(1)). Employers may instead use the voluntary Savings Scheme approved under Art. 51(8).
- Must be paid within 14 days of the contract ending, with any other dues.
- Rules last checked 12 November 2026.
How UAE gratuity works
Gratuity is earned in days of basic wage per year of service: 21 days for each of the first 5 years, then 30 days for each year after. It starts once you have worked 1 full year, and part years are paid in proportion.
Gratuity = daily basic wage × (21 × years up to 5 + 30 × years after 5), up to 2 years' wage
Worked example
A basic salary of AED 10,000 for exactly 6 years gives a daily wage of 10,000 ÷ 30 = AED 333.33. The days earned are 5 × 21 + 1 × 30 = 135, so the gratuity is 135 × 333.33 = AED 45,000.
Which daily wage?
Article 67 of the Labour Law counts a month as 30 days, so a day's basic wage is your monthly basic salary ÷ 30, and 30 days' wage equals one month's basic salary.
Questions people ask
How is gratuity calculated in the UAE?
21 days of basic wage for each of the first 5 years of service, and 30 days of basic wage for each year after that. Part years count pro rata once you have completed 1 year.
Do I get gratuity if I resign?
Yes. Under Federal Decree-Law 33 of 2021, resigning no longer reduces your gratuity, as long as you have at least 1 year of continuous service.
Is gratuity based on basic or total salary?
On your last basic salary only. Housing, transport and other allowances are not included.
Is there a maximum gratuity?
Yes. The total cannot be more than 2 years' wage.
When must gratuity be paid?
Within 14 days of the end of the employment contract, together with other dues.
How is the daily wage worked out?
Article 67 of the Labour Law counts a month as 30 days, so a day's basic wage is your monthly basic salary ÷ 30, and 30 days' wage equals one month's basic salary.
Does gratuity apply to UAE nationals?
No. It applies to non-UAE nationals; Emiratis are covered by the GPSSA pension instead (Art. 51(1)). Employers may also use the voluntary Savings Scheme approved under Art. 51(8) in place of gratuity.
About this calculator
Formula and rules last checked 12 November 2026Written and tested by the CalculatorDex teamReport a problem
Sources: Federal Decree-Law No. 33 of 2021, Articles 51, 53 and 67 (UAE Government portal) · u.ae: End of service benefits for workers in the private sector · UAE Ministry of Human Resources and Emiratisation