UAE Gratuity Calculator 2026: Get Clear Idea of Your End of Service Benefits
This calculator works out your UAE end-of-service gratuity under Federal Decree-Law No. 33 of 2021. Enter your basic monthly salary and your service dates, and it applies the official formula: 21 days’ pay per year for your first five years, then 30 days’ pay per year after that, capped at two years’ total wage.
Based on your basic salary only. Housing, transport and other allowances are excluded, as the law defines gratuity on the basic wage.
How UAE gratuity is calculated?
End-of-service gratuity is a lump sum your employer owes you once you complete at least one full year of continuous service. It is set out in Federal Decree-Law No. 33 of 2021, and the formula is the same for every private-sector employee, regardless of nationality or job type.
| Years of service | Gratuity rate |
|---|---|
| Under 1 year | No gratuity |
| 1 to 5 years | 21 days’ basic pay for each year |
| Beyond 5 years | 30 days’ basic pay for each additional year |
Two rules cap and shape the final number. First, the calculation always uses your basic salary, not your full package, so housing and transport allowances are excluded. Second, total gratuity cannot exceed two years’ worth of your basic salary, no matter how long you have worked.
A worked example
Say your basic salary is AED 10,000 a month, and you worked for exactly 7 years. Your daily wage is AED 10,000 divided by 30, which is AED 333.33.
For the first 5 years, you earn 21 days a year, so 105 days in total. For the 2 years beyond that, you earn 30 days a year, so 60 more days. That is 165 gratuity days altogether. Multiply 165 by your daily wage of AED 333.33, and your gratuity comes to roughly AED 55,000. This sits well under the two-year salary cap of AED 240,000, so the full amount applies.
Does resignation reduce your gratuity?
Not anymore. Under the older 1980 labour law, resigning before completing several years of service could reduce or wipe out your gratuity entirely. Federal Decree-Law No. 33 of 2021 removed that distinction. Today, if you have completed at least one year of continuous service, you receive the full gratuity calculated by the formula above, whether you resigned or were terminated, as long as the termination was not for the specific disciplinary reasons listed in the law.
This is one of the most common points of confusion, so it is worth checking your own contract dates carefully against the table above rather than assuming an old rule still applies.
When gratuity must be paid?
Your employer must pay your end-of-service gratuity, along with any other final dues, within 14 days of your last working day. If this deadline passes without payment, you can raise it as a wage dispute. See our guide to the WPS salary delay complaint for how that process works, and our wider UAE labour law 2026 guide for the rest of your entitlements.
Frequently asked questions
How is UAE gratuity calculated?
Gratuity is based on your basic monthly salary, divided by 30 for a daily rate. You earn 21 days’ pay for each of your first five years of service, then 30 days’ pay for each year after that. The total is capped at two years’ worth of your basic salary, and you need at least one full year of service to qualify.
Do I get full gratuity if I resign?
Yes, under the current law. Federal Decree-Law No. 33 of 2021 removed the old penalty for resigning early. As long as you have completed at least one year of continuous service, you are entitled to your full gratuity under the standard formula, regardless of whether you resigned or your employer ended the contract.
Is gratuity based on basic salary or total salary?
Basic salary only. Allowances for housing, transport, and other benefits are not included in the calculation, even if they make up a large part of your monthly pay. Check your employment contract for the exact basic salary figure, since this is what the gratuity formula actually uses.
When should I receive my gratuity payment?
Your employer must pay your gratuity, along with any other final dues, within 14 days of your last working day. If it is not paid on time, you can raise a wage complaint through MOHRE. Keep your salary certificate and final payslip as evidence if you need to follow up.
Last verified: July 2026
Written by Roman Shah ยท Reviewed by the UAEexplained editorial team
Source: Federal Decree-Law No. 33 of 2021; Ministry of Human Resources and Emiratisation (MOHRE)
