UAE Gratuity Calculator
Estimate end-of-service gratuity for the supported UAE private-sector full-time worker scope.
Calculate your estimate
Private-sector full-time traditional gratuity route
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Saved estimate history
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Scope of this calculator
Scope in
- Private-sector employees covered by UAE Labour Law end-of-service gratuity rules.
- Last basic wage only, not total salary or allowances.
- Completed continuous service as this tool defines it, with unpaid absence days excluded.
Scope out
- Domestic workers, who sit under a separate law.
- Government employees.
- Disputed termination cases still under review.
- Packages that replace gratuity with a written alternative savings scheme.
Worked example
Basic wage AED 10,000, total wage AED 12,000, full-time private sector on the traditional route. This tool follows the convention used in its own script: service is the calendar days between your two dates minus unpaid absence, divided by 365, and the first five years earn 21/30 of the last basic monthly wage each while later years earn a full month each. For 6.00 years that is 10,000 x 21/30 x 5 = 35,000 plus 10,000 x 1 = 10,000, so about AED 45,000, below the two-years-of-total-wage cap of AED 288,000.
Mini-example: an exit after 10 months returns a manual-review message, not an amount, because the traditional route generally starts after one completed year of continuous service.
How this calculator works
For eligible full-time foreign workers: 21 days of last basic wage for each of the first five years, then 30 days for each later year. The official text caps total gratuity at two years’ wage.
Read the explainer: GCC gratuity compared - six statutory floors — the method in plain words. The number still lives on this calculator.
What people get wrong, and who maintains this
Old law versus Federal Decree-Law No. 33 of 2021
Under the old Federal Law No. 8 of 1980 a worker who resigned from an unlimited contract could lose part of the gratuity on a sliding scale (roughly a third or two thirds) below five years of service. On the current route under Federal Decree-Law No. 33 of 2021 there is no resignation reduction once one full year of service is complete: a resigning worker and a terminated worker are treated on the same day-count basis. If someone quotes you a resignation cut, check which law they are reading.
Mainland Article 51 only - DIFC, ADGM and DEWS are a different route
This estimate is the mainland private-sector Article 51 gratuity. Employees in DIFC (and ADGM arrangements) sit under a funded end-of-service scheme such as DEWS, where the employer contributes monthly and your benefit is the accumulated pot plus investment return - not last basic wage times a day count. Do not apply this formula to a DIFC contract; use the DEWS contribution planner at https://gulfexpattools.com/uae-dews-contribution-planner/ instead.
Who maintains this and how
Gulf Expat Tools, maintained by Feroz Sheikh, covers UAE private-sector end-of-service. The maths runs in your browser only - no data leaves the page and no MOHRE or ICP system is queried - and the convention is checked against the UAE Legislation Portal text of Federal Decree-Law No. 33 of 2021 on the regulation of labour relations.
Why use it
To hold a defensible planning figure before HR issues the final settlement. Estimate only: it is not a filing, not legal advice and not a payroll statement.
Estimate only.
Official Sources & Legal References
Official source used for this page
This tool is maintained against the referenced authority. Rules can change, so check the source and the page review date before acting.
UAE Legislation Portal — Federal Decree-Law No. 33 of 2021 ↗
Common questions
Short answers for using this tool responsibly.
Is UAE gratuity based on basic wage or total salary?
Article 51 bases gratuity on the last basic wage, so housing, transport and other allowances are excluded, and this tool uses total wage only to apply the two-years-of-wage cap; confirm against your contract and the cited article.
Does resignation pay less than employer termination?
Under Federal Decree-Law No. 33 of 2021 the old unlimited-contract resignation reductions no longer apply, so a resigning worker with a completed year is generally treated on the same 21/30-day basis; confirm against your contract and the cited article.
What about old limited and unlimited contracts?
Contracts issued before the 2021 decree-law had to move to fixed-term terms, and this calculator applies only the current route rather than the historic limited/unlimited split, so historic service periods need manual review; confirm against your contract and the cited article.
Does unpaid leave count towards service?
Unpaid absence is normally excluded from countable service, which is why this tool subtracts the unpaid absence days you enter before converting service to years; confirm against your contract and the cited article.
Who pays the gratuity and when?
The employer pays gratuity as part of the final settlement after employment ends, and unresolved amounts can be raised with MOHRE; confirm against your contract and the cited article.
What if my employer uses the alternative savings scheme?
Workers enrolled in an approved alternative end-of-service savings scheme accrue through that scheme instead of the traditional calculation, so this tool returns a manual-review message for that selection; confirm against your contract and the cited article.
UAE gratuity: the current 21/30-day rule
For the supported full-time private-sector traditional route: after one completed year, estimate 21 days of the last basic wage for each of the first five years and 30 days for each later year. A proportional part of a later year counts after the first completed year; unpaid absence is excluded. The statutory total cannot exceed two years’ wage.
Worked check: AED 10,000 basic wage and exactly six eligible years gives AED 35,000 for years 1–5 plus AED 10,000 for year 6, or AED 45,000 before the cap and any lawful deductions.
From estimate to payment
- Do not use this traditional formula for an employer-enrolled alternative savings scheme; use the scheme statement and rules.
- DIFC, ADGM, domestic-worker and government routes need their own rules. This calculator does not decide which regime covers you.
- The UAE Government states that outstanding wages, other entitlements and gratuity should be paid within 14 days after the contract ends. If the amount or timing is disputed, request the calculation in writing and use the official MOHRE private-sector complaint route.
Official sources checked 16 September 2026: Federal Decree-Law No. 33 of 2021, Articles 51 and 53, UAE Government end-of-service guidance, and the MOHRE private-sector complaint service.
Check the inputs before comparing your gratuity result
Keep your latest payslip, employment dates and a record of unpaid absence beside you. This calculator has two different wage inputs: the basic-wage field drives its service calculation, while the total-wage field is used for its stated cap. Do not put the same figure in both boxes unless that matches your records.
Three checks that prevent misleading comparisons
- Compare the same period. Use the employer-recorded start and end dates. Ask whether unpaid absence has already been excluded so that you do not deduct it twice.
- Compare the same benefit. A gratuity estimate is not the whole final settlement. Salary still due, unused leave, notice and deductions should be listed separately.
- Compare the same scheme. If your employer uses a savings scheme or a jurisdiction-specific arrangement, obtain the scheme statement and applicable rules before using a traditional gratuity estimate.
For example, a settlement sheet can list AED 27,000 gratuity and AED 3,000 other dues. Comparing its AED 30,000 total with a gratuity-only calculator would not identify an error; first compare the gratuity line itself. These are illustrative amounts, not a benefit calculation.
Read the UAE gratuity guide, then use the UAE final-settlement planner for separate components. For the DIFC contribution-planning route, see the DEWS contribution planner; it is not a substitute for a fund statement.
If an amount differs, ask HR for the wage basis, service period, excluded days and a line-by-line breakdown. The linked UAE legislation source and your actual employment route control the applicable rules.