Free Tool

UAE Gratuity Calculator

Calculate your end-of-service gratuity under UAE Labour Law. Free. Instant. Based on Federal Decree-Law No. 33 of 2021.

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Exclude housing, transport, and other allowances

Under the new law, all contracts are effectively limited/fixed-term

Enter your details and click "Calculate Gratuity" to see your end-of-service entitlement.

How UAE Gratuity Works

Under Federal Decree-Law No. 33 of 2021:

First 5 years → 21 days basic salary per year

After 5 years → 30 days basic salary per year

Total cap → 2 years total salary maximum

Minimum → 1 year service required

Calculated on basic salary only. Allowances, bonuses, and commissions are excluded.

How Is End-of-Service Gratuity Calculated in the UAE?

Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), all employees who complete one year or more of continuous service are entitled to end-of-service gratuity. The calculation is based on the employee's basic salary — not total salary package.

For the first five years of service, the gratuity is calculated at 21 calendar days of basic salary per year. For each additional year beyond five, the rate increases to 30 calendar days per year. The total gratuity is capped at two years' total salary.

Employees in free zones such as DIFC and ADGM may have different gratuity calculations based on the employment laws of those jurisdictions. DIFC, for example, follows DIFC Employment Law No. 2 of 2019, which has its own gratuity formula.

If an employee is terminated for gross misconduct under Article 44 of the Labour Law, they forfeit their right to end-of-service gratuity entirely. For all other termination types — including resignation with proper notice — the full gratuity is payable under the new law.

Your employer must pay the gratuity within 14 days of the last working day. If they fail to do so, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) or through the MOHRE app.