UAE Gratuity Calculator
Estimate your UAE end-of-service gratuity in seconds. This free calculator applies the current rules under Federal Decree-Law No. 33 of 2021 (in force since February 2022) and works for employees in Dubai, Abu Dhabi, Sharjah and across the UAE.
Basic salary only — exclude housing, transport & other allowances.
Under Federal Decree-Law No. 33 of 2021 (effective Feb 2022), the old resignation deduction was abolished — resignation and termination now produce the same gratuity.
Estimated end-of-service gratuity
AED 31,500
- Daily wage (basic ÷ 30)
- AED 500.00
- Years counted
- 3
- First 5 years (21 days/yr) · 63 days
- AED 31,500.00
- Total gratuity
- AED 31,500.00
This is an estimate for guidance only and not legal or financial advice. Final amounts depend on your contract, unpaid leave and any agreed deductions.
How UAE gratuity is calculated
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), end-of-service gratuity is calculated on your basic salary only — allowances such as housing, transport and commissions are excluded.
- You must complete at least 1 full year of continuous service to be entitled to any gratuity.
- For the first 5 years of service: 21 days’ basic wage for each year.
- For every year beyond 5 years: 30 days’ basic wage for each year.
- Partial years are paid pro-rata based on completed months (6 months = half a year).
- The daily wage is your basic monthly salary divided by 30.
- The total gratuity cannot exceed the equivalent of 2 years’ total basic salary.
- Since February 2022 the old resignation deduction (1/3 or 2/3) has been abolished — resignation and termination now give the same standard gratuity.
Worked example
An employee with a basic salary of AED 10,000 and 6 years of service: the daily wage is AED 333.33 (10,000 ÷ 30). For the first 5 years they earn 21 × 5 = 105 days, and for year 6 they earn 30 days — 135 days in total. Gratuity ≈ 135 × 333.33 = AED 45,000.
Frequently asked questions
How is gratuity calculated in the UAE?
Gratuity is based on your basic salary. You receive 21 days’ basic wage for each of the first 5 years of service, and 30 days’ basic wage for each year beyond 5 years. The daily wage equals your basic monthly salary divided by 30. The total is capped at 2 years’ basic salary.
Do I get gratuity if I resign in the UAE?
Yes. Since Federal Decree-Law No. 33 of 2021 took effect in February 2022, the old resignation deductions were abolished. As long as you have completed at least one year of service, resignation and termination now give the same full gratuity entitlement.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated on basic salary only. Allowances such as housing, transport, commissions and other benefits are excluded from the calculation under UAE law.
Is there a maximum gratuity amount in the UAE?
Yes. The total end-of-service gratuity may not exceed the equivalent of two years’ total basic salary, regardless of how long you have worked.
Do I get gratuity if I worked less than one year?
No. Employees must complete at least one full year of continuous service to be entitled to end-of-service gratuity under UAE labour law. Periods of less than a year do not qualify.
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