UAE Gratuity Calculator 2026: End-of-Service Benefit

Quick Summary: UAE End-of-Service Gratuity

• What it is: a lump sum your employer must pay when you leave, once you have completed at least one year of continuous service.
• How much: 21 days’ basic pay for each of the first 5 years, then 30 days’ basic pay for every year after that – capped at 2 years’ pay.
• On what: your basic salary only. Housing, transport and other allowances are excluded.
• Resigning? You still get the full amount. The old resignation cut was removed by the 2021 law – many online calculators still get this wrong.
• When: your employer must pay within 14 days of your last working day.
• Who: expatriate private-sector staff on the federal MOHRE system. UAE nationals and DIFC follow different schemes; ADGM keeps the standard gratuity by default.

End-of-service gratuity is the money you have earned simply by staying. It builds up quietly in the background of every UAE job, and most people only work out what it is worth in the final week – often after reading a calculator online that is running on the old, repealed law. That is where the arguments start.

This guide gives you the real number and the rule behind it, straight from Article 51 of Federal Decree-Law No. 33 of 2021, the current UAE Labour Law. It has been reviewed by Akbar Ali, a Chartered Accountant who provisions end-of-service liabilities for UAE employers, so it reflects both what the law says and how it is actually paid.

Gratuity is not a surprise bill – it is a liability that grows on the books every single month. The companies that get caught short at the end are the ones that never set the money aside along the way.

— Akbar Ali, Chartered Accountant (ICAI), audit, accounting & tax (reviewer)

UAE Gratuity Calculator

Enter your basic salary and length of service below to see your end-of-service gratuity, calculated on the current 2021 UAE Labour Law – with resignation paid in full.

How UAE gratuity is calculated

The formula has four moving parts. Get these right and the number is simple arithmetic.

1. Start with your basic wage. Not your total package – just the basic salary written in your contract. The law (Article 1) specifically excludes housing, transport, utilities and other allowances.
2. Find your daily wage. Divide your monthly basic salary by 30. This is the standard MOHRE method used to turn a monthly figure into “days” of pay.
3. Count 21 days per year for the first five years. Under Article 51(2)(a), each of your first five years earns 21 days of basic pay.
4. Count 30 days per year after five years. Article 51(2)(b): every year beyond the fifth earns 30 days. Part-years are paid pro-rata once you have passed the one-year mark.

Two limits apply. You must complete one full year of continuous service to earn anything at all, and the total is capped at two years’ wage (Article 51(6)) – a cap most people never reach. Any days of unpaid leave are left out of the service count (Article 51(4)).

A worked example

Take someone on a basic salary of AED 10,000 a month who leaves after 3 years:

Stay 7 years on the same salary and it becomes (21 × 5) + (30 × 2) = 165 days, or about AED 55,000 – the higher 30-day rate kicking in for years six and seven.

Does resigning cut my gratuity? No – and here is the trap

This is the single biggest source of wrong gratuity figures in the UAE. Under the old law (Federal Law No. 8 of 1980), an employee who resigned received only a fraction of their gratuity – one third for 1–3 years, two thirds for 3–5 years, and the full amount only after five years.

That rule is gone. Federal Decree-Law No. 33 of 2021 (in force since February 2022) applies one single formula to everyone with at least a year of service, with no reduction for resignation. A person who resigns after three years gets exactly the same 21-day-per-year gratuity as a person who is terminated.

Who the standard formula applies to

The 21/30-day rule covers expatriate, full-time, private-sector employees on the federal MOHRE system – which includes most non-financial free zones such as JAFZA and DMCC. A few groups follow different rules:

• UAE and GCC nationals: covered by the GPSSA pension and social-security scheme, not the 21/30-day gratuity.
• DIFC employees: since 1 February 2020, DIFC replaced accruing gratuity with the funded DEWS scheme – the employer pays 5.83% of basic wage each month (8.33% after five years) into a savings plan instead.
• ADGM employees: the default is still the standard 21/30-day gratuity; an employer may offer an optional savings scheme (from April 2025), but it is voluntary, not automatic.
• Part-time and flexible staff: gratuity is pro-rated by the hours you work versus a full-timer, under Cabinet Resolution No. 1 of 2022.
• Domestic workers (maids, drivers, nannies): under a separate law (Federal Decree-Law No. 9 of 2022); a figure of around 14 days’ pay per year is commonly applied.

When gratuity can be reduced – and when it cannot

A few situations genuinely change the number, and a few myths do not:

• Under one year of service: no gratuity is due. This is the only clean cut-off.
• Unpaid leave: days taken as unpaid leave are removed from your service total before the calculation.
• Not serving your notice: this does not erase your gratuity. You may owe your employer a notice-period allowance, but that is a separate amount, offset against your final dues – your earned gratuity stays intact.
• Dismissal for gross misconduct (Article 44): the current law does not contain a clause that forfeits gratuity for this, unlike the old law. In practice some employers still try, so if this applies to you, take advice before signing anything.

Five mistakes that cost people money

1. Calculating on total salary. Using your full package instead of basic salary inflates the figure and sets up a dispute. Only basic counts.
2. Trusting a calculator that cuts for resignation. It is using the repealed 1980 law. Your resignation does not reduce your gratuity.
3. Forgetting the 30-day rate after year five. Long-service employees who apply 21 days to every year short-change themselves.
4. Assuming DIFC works the same way. DIFC staff accrue DEWS contributions, not gratuity – check your monthly statements, not a gratuity formula.
5. Waiting past 14 days for payment. Your employer must settle within 14 days of your last day; a delay is a claim you can raise with MOHRE.

Frequently asked questions

How is end-of-service gratuity calculated in the UAE?

For an expatriate private-sector employee, gratuity is 21 days of basic salary for each of the first five years of service, then 30 days of basic salary for each year after that. Work out a daily wage by dividing your monthly basic salary by 30, multiply by the number of gratuity days you have earned, and cap the total at two years' wage. You must complete at least one year of continuous service to qualify.

Is gratuity based on basic salary or total salary?

Basic salary only. Article 1 of Federal Decree-Law No. 33 of 2021 defines the basic wage as the amount in your contract excluding all allowances and benefits in kind, such as housing, transport, utilities and furniture. Using your total package is the most common cause of an inflated, disputed figure.

Do I lose part of my gratuity if I resign?

No. Under the current 2021 law, a resigning employee with at least one year of service receives the full gratuity, calculated on exactly the same 21/30-day formula as someone who is terminated. The old rule that cut resignation gratuity to one third or two thirds came from the repealed 1980 law and no longer applies. Many online calculators still show the old reduction, so treat any tool that cuts your amount for resigning as out of date.

What is the minimum time I need to work to get gratuity?

One full year of continuous service. Below one year, no gratuity is due. Once you pass the one-year mark, additional part-years are paid on a pro-rata basis for the time worked.

How much gratuity do I get after 5 years and after 10 years?

The first five years earn 21 days of basic pay each. From year six onwards you earn 30 days per year. So after 5 years you have 105 days of basic pay; after 10 years you have (21 x 5) + (30 x 5) = 255 days. Multiply your daily wage (basic salary divided by 30) by those days to get the amount, subject to the two-year-wage cap.

When does my employer have to pay my gratuity?

Within 14 days of your last working day. Gratuity is part of your final settlement, along with any unused leave and outstanding salary. If payment is late, you can raise the matter with the Ministry of Human Resources and Emiratisation (MOHRE).

Do DIFC and ADGM employees get the same gratuity?

Not identically. DIFC replaced accruing gratuity in February 2020 with the DEWS scheme, where the employer pays a monthly percentage of your basic wage (5.83%, rising to 8.33% after five years) into a funded savings plan. ADGM still uses the standard 21/30-day gratuity by default, though an employer may offer an optional savings scheme. Most other free zones follow the federal MOHRE formula.

Can my employer refuse to pay gratuity?

Only if you have not completed one year of service. Otherwise gratuity is a legal entitlement. Not serving your notice period does not cancel it; at most you may owe a separate notice allowance that is offset against your dues. If an employer withholds gratuity you are owed, you can file a claim through MOHRE, and the payment is due within 14 days of your exit.

Sources and official references

Related guides

• UAE gratuity calculator (standalone tool)
• WPS payroll compliance guide
• ILOE unemployment insurance guide
• UAE business operations and compliance
• Talk to an adviser

This guide is general information, not legal or financial advice. Gratuity outcomes depend on your contract, service record and any deductions, and UAE rules change. Confirm your final settlement with your employer or a licensed adviser before you act.