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Employment · Free tool

UAE Gratuity Calculator

Work out the end-of-service gratuity a private-sector employee is owed under the UAE Labour Law, from basic salary and dates of service.

Rules checked November 3, 2026

AED

Basic pay only, without housing, transport or other allowances.

Unpaid leave doesn't count as service.

Daily wage

Your gratuity

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Enter your start date and last working day.

An estimate under Federal Decree-Law No. 33 of 2021 for private-sector employees. Your contract, employer policy or a court can produce a different figure; check with MOHRE or a lawyer for a dispute.

How it’s calculated

Under Article 51 of Federal Decree-Law No. 33 of 2021, a full-time private-sector employee who completes at least one year of continuous service is owed 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after that. Part years count pro rata once the first year is complete.

Only basic salary counts: housing, transport and other allowances are excluded. Days of unpaid leave are not counted as service. The total can't exceed two years' wage (24 months of basic salary).

The law doesn't say how to turn a monthly salary into a daily wage. The common convention, and this calculator's default, is basic salary ÷ 30. Some employers use basic × 12 ÷ 365, which gives a slightly lower figure; you can switch methods below.

Resigning no longer reduces the gratuity, as it did under the old law. It must be paid within 14 days of the contract ending.

Frequently asked questions

How is gratuity calculated in the UAE?
21 days of basic salary for each of the first five years of service and 30 days for each year after, with part years pro rata. The daily rate is usually monthly basic salary divided by 30, and the total is capped at two years' basic salary.
Do I get gratuity if I resign?
Yes. Under Federal Decree-Law 33 of 2021 an employee who resigns after at least one year of continuous service receives the full gratuity; the old reductions for resignation no longer apply.
Is gratuity paid for less than one year of service?
No. Gratuity starts once one full year of continuous service is complete. After that, part years are counted pro rata.
Are allowances included in gratuity?
No. Gratuity is calculated on the last basic salary only. Housing, transport and other allowances, bonuses and commission are excluded.
Does this apply in DIFC, ADGM or government jobs?
No. DIFC and ADGM have their own employment laws and savings schemes, and federal and local government employees fall under separate pension and HR laws. This calculator covers private-sector employees under the UAE Labour Law.
When must gratuity be paid?
Within 14 days of the end of the employment contract, together with any other dues such as unused annual leave.

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