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UAE Gratuity Calculator

Work out your end-of-service benefit to the formula in Federal Decree-Law No. 33 of 2021.

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Your service details
Basic salary only, excluding housing, transport and other allowances.

Estimated gratuity

AED 0

Total days owed0
Daily wageAED 0
Cap applied?No

Formula: 21 days per year for years 1–5, 30 days per year after, daily wage = basic ÷ 30, capped at 24 months’ basic salary. Unpaid leave is excluded. Estimate only: confirm against your MOHRE-registered contract and final settlement.

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The rule in brief

UAE gratuity pays 21 days of basic salary per year of service for the first five years and 30 days per year after that, capped at two years’ basic pay. Resignation and termination are treated the same once one year of service is complete (Federal Decree-Law No. 33 of 2021, MOHRE).

How the UAE gratuity calculation works

Under Federal Decree-Law No. 33 of 2021, enforced by the Ministry of Human Resources and Emiratisation (MOHRE), private-sector employees become eligible for gratuity after one completed year of continuous service. The law no longer distinguishes between limited and unlimited contracts, and unlike Saudi Arabia it does not reduce the amount for resigning.

  • Years 1–5: 21 days of basic salary per year.
  • Year 6 onward: 30 days of basic salary per year.
  • Daily wage: basic monthly salary ÷ 30.
  • Cap: total gratuity cannot exceed two years’ basic salary.
  • Excluded: housing, transport and other allowances; unpaid leave days.

Worked example

A Dubai employee on AED 8,000 basic monthly salary with 7 years and 6 months of service:

PeriodRateDays
First 5 years21 days × 5105
Remaining 2.5 years30 days × 2.575
TotalDaily wage AED 266.67180 days ≈ AED 48,000

Below the 24-month cap of AED 192,000, so the full amount is payable. Source: Federal Decree-Law No. 33 of 2021, MOHRE; last verified 20 July 2026.

Frequently asked questions

How is gratuity calculated in the UAE?

21 days of basic salary per year for the first five years and 30 days per year after that, on the final basic salary, capped at two years’ pay. Source: Federal Decree-Law No. 33 of 2021, MOHRE.

Do I get gratuity if I resign in the UAE?

Yes. Since the 2022 reform, resignation and termination receive the same gratuity once one year of service is complete; there is no reduced rate for resigning.

Is UAE gratuity calculated on basic or total salary?

Basic salary only. Housing, transport, bonuses and commissions are excluded, even if they appear on the same payslip.

Is there a maximum gratuity amount in the UAE?

Yes. Total gratuity cannot exceed two years’ basic salary, however many years beyond that were served.

When must my employer pay gratuity in the UAE?

Final settlement, including gratuity, is due within 14 days of the employment relationship ending. Source: MOHRE.

Sources

  1. MOHRE — Ministry of Human Resources & Emiratisation
  2. UAE Government portal — End of service benefits

Estimates only, not legal or financial advice. Rules last verified 20 July 2026; page updated 20 October 2026; see our editorial policy.

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