UAE Gratuity Calculator
Work out the end-of-service gratuity for a full-time employee in the UAE private sector. The calculator follows Article 51 of Federal Decree-Law No. 33 of 2021: 21 days of basic salary for each of the first five years, 30 days for each year after that, and never more than two years of basic pay.
Enter the monthly basic salary, the first day of work and the last working day, and add any days of unpaid absence. The result and every step of the sum appear as you type. Nothing you enter leaves your browser.
Estimated gratuity
Enter the basic salary and the first day of work to see the result.
For full-time foreign employees on mainland contracts, and in free zones that follow the federal Labour Law. Emirati employees receive end-of-service benefits under the pension law, part-time staff have their own formula, and DIFC and ADGM have their own employment laws.
This calculator gives an estimate, not legal advice. Rules checked on 6 November 2026 against Federal Decree-Law No. 33 of 2021 (Articles 51, 53 and 67) and the UAE government portal u.ae. A contract or a court decision may give a different amount.
How the UAE gratuity calculation works
Five steps, all from the Labour Law. The calculator does each one for you.
- 1
Count the service
Count the days from the first day of work to the last working day, then take out any days of unpaid absence (Article 51(4)). The law treats a year as 365 days and a month as 30 days (Article 67).
- 2
Check the one-year minimum
An employee with less than one full year of continuous service gets no gratuity. After one year, part years count pro rata (Article 51(3)).
- 3
Find the daily basic wage
Divide the last monthly basic salary by 30. Housing, transport and other allowances are not part of the basic wage (Article 1).
- 4
Add up the days
21 days for each of the first five years and 30 days for each year after that (Article 51(2)).
- 5
Multiply and apply the cap
Multiply the days by the daily wage. The total cannot be more than two years' wage, which is 24 months of basic salary (Article 51(6)).
The formula
- Daily wage = monthly basic salary ÷ 30
- Gratuity = (21 × years up to 5 + 30 × years after 5) × daily wage
- Maximum = 24 × monthly basic salary
Worked example
An employee leaves after 7 years and 6 months. The monthly basic salary is AED 12,000 and there was no unpaid leave.
- Daily basic wage: 12,000 ÷ 30 = AED 400
- First 5 years: 5 × 21 = 105 days
- The other 2.5 years: 2.5 × 30 = 75 days
- Total: 180 days × AED 400 = AED 72,000
- Cap check: 24 × 12,000 = AED 288,000, so the cap does not apply
Gratuity due: AED 72,000
Questions about gratuity in the UAE
Is gratuity calculated on basic salary or total salary?
On the basic salary. Article 51 bases gratuity on the basic wage, and the law defines the basic wage as the pay in the contract without allowances or benefits in kind. Housing, transport and other allowances are left out, unless the contract promises a more generous basis. The last basic salary before the end of service is the one that counts.
Does resigning reduce gratuity, and does the contract type matter?
No. Under the 2021 law the formula is the same whether the employee resigns or the employer ends the contract, as long as the employee has at least one full year of continuous service. The cuts for resignation in the old 1980 law are not in the new law. Unlimited contracts were also phased out: the 2021 law requires fixed-term contracts and told employers to convert the old unlimited ones.
When must the employer pay gratuity?
Within 14 days of the end of the contract, together with unpaid wages and all other dues (Article 53). The employer may deduct amounts the employee owes under the law or a court judgment (Article 51(7)). If the money does not arrive, the employee can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
How do part years and unpaid leave count?
Once the first full year is done, every extra day counts. Six more months adds half a year: 10.5 days of basic pay in the first five years, 15 days after that. Days of unpaid leave or unpaid absence are taken out of the service before anything is calculated. Paid leave still counts as service.
Does this apply to free zones, Emiratis and part-time staff?
It applies to full-time foreign employees in the mainland private sector and in free zones that follow the federal Labour Law. DIFC and ADGM have their own employment laws and end-of-service rules. Emirati employees receive end-of-service benefits under the pension and social security law. Part-time staff get gratuity in proportion to their contracted hours, under a separate formula.
What is the UAE savings scheme for end-of-service benefits?
Cabinet Resolution No. 96 of 2023 lets employers join a voluntary savings scheme instead of paying gratuity at the end. The employer pays 5.83% of the employee's basic salary each month during the first five years of service and 8.33% after that. The contributions are invested and the employee receives the balance when the job ends. Gratuity earned before the employer joined is still owed under the normal formula, so this calculator still applies to that period.
Track every employee's gratuity automatically
This calculator answers the question for one person on one day. An employer needs the same answer for the whole team, every month, as salaries rise and service grows.
TracefyHR shows the gratuity each employee has earned so far and the total for the company. Pick the United Arab Emirates when you sign up and the UAE rule is set for you: 21 days of basic salary a year for five years, 30 days after, capped at two years. It works from each person's start date and basic salary, so the figures stay current without a spreadsheet.
- Accrued gratuity per employee and the company total
- Basic salary and allowances kept separate on every payslip
- Payroll in AED with a WPS salary file (.SIF) for your bank
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