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UAE Gratuity Calculator

Calculate an estimated UAE end-of-service gratuity using your basic salary and length of service.

Free to use. No email address or sign-up required — everything is worked out in your browser.

Your employment details

Enter basic salary, not total salary including allowances. Housing, transport and other allowances are excluded by law.

Your estimate

Enter your start date, end date and last monthly basic salary to see an estimated gratuity, along with every line of the calculation.

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How is UAE gratuity calculated?

End-of-service gratuity for employees covered by UAE federal private-sector employment law is set out in Article 51 of Federal Decree-Law No. 33 of 2021. A full-time employee who completes at least one year of continuous service earns 21 days of basic wage for each year of the first five years of service, and 30 days of basic wage for each year of service after that. Part years are calculated proportionately once the first full year has been completed, and the total entitlement is capped at two years' wage.

The calculation runs in four steps: work out the daily basic wage (monthly basic salary divided by 30), count the gratuity days earned across the first five years and any later years, add them together, then multiply by the daily basic wage. Periods of unpaid leave or unpaid absence are not counted in the service period.

What salary is used to calculate UAE gratuity?

Gratuity is based on the employee's last basic wage, not total or gross pay. Housing, transport, schooling and similar allowances, along with overtime and bonuses, are excluded. This is the single most common source of confusion: a package of AED 15,000 per month made up of AED 9,000 basic and AED 6,000 of allowances produces gratuity built on AED 9,000. The basic wage figure to use is the one recorded on the employment contract.

What happens after five years?

The accrual rate increases. Each of the first five years earns 21 days of basic wage — equivalent to 0.7 of a month. From the start of the sixth year onwards, each year earns 30 days of basic wage, a full month. An employee with seven years of service therefore earns 105 days for the first five years plus 60 days for the two remaining years, a total of 165 days. Because the total is capped at two years' wage, the payment stops increasing once that ceiling is reached.

Do you receive gratuity if you work for less than one year?

No. Statutory end-of-service gratuity generally requires at least one year of continuous service, so an employee who leaves after, for example, eleven months has no statutory gratuity entitlement — whether they resigned or were terminated. Other elements of a final settlement, such as payment for accrued but unused annual leave, outstanding wages and any notice entitlement, are separate from gratuity and may still apply.

UAE gratuity calculation example

An employee joined on 1 March 2019 and finished on 1 September 2026, with a last monthly basic salary of AED 10,000. Their service is 7 years, 6 months.

  • Daily basic wage: AED 10,000 ÷ 30 = AED 333.33
  • First five years: 5 × 21 days = 105 gratuity days
  • Service above five years: 2.5 × 30 days = 75 gratuity days
  • Total gratuity days: 180
  • Estimated gratuity: 180 × AED 333.33 = AED 60,000

The two-year cap for this employee would be AED 240,000, so it does not apply here.

Frequently asked questions

Is gratuity calculated on basic salary or total salary?

Gratuity is calculated on the last basic wage. Allowances such as housing, transport, schooling, overtime and bonuses are not included in the standard calculation.

Does resigning reduce my gratuity?

Under the current federal private-sector law, resignation does not automatically reduce gratuity. The older reductions that applied to resignation under the previous law no longer apply, although unlawful termination of the contract by the employee can still affect entitlement in specific cases.

Is there a maximum gratuity payment?

Yes. Total end-of-service gratuity is capped at two years' wage, so very long service does not increase the payment beyond that ceiling.

Does unpaid leave count towards my service period?

No. Periods of unpaid leave or unpaid absence are not counted as part of the continuous service used for the gratuity calculation, so your entitlement may be slightly lower than a straight date-to-date calculation suggests.

Do UAE and GCC nationals receive gratuity?

UAE and GCC nationals in the private sector are enrolled in the pension and social security scheme administered by GPSSA rather than the standard end-of-service gratuity system, so this calculator does not apply to them.

Does this calculator apply in DIFC or ADGM?

No. DIFC and ADGM operate their own employment regimes, including funded savings arrangements in place of gratuity, so entitlement is calculated differently there.

Important disclaimer

This is an indicative calculator, not legal advice. Individual circumstances — including contract terms, unpaid absence, the reason employment ended and any alternative end-of-service scheme — can affect actual entitlement. It is intended primarily for employees covered by UAE federal private-sector employment law. DIFC, ADGM, government-sector employment, pension and GPSSA arrangements and other special regimes may operate differently. Please consult the Ministry of Human Resources and Emiratisation (MOHRE) or take professional advice where appropriate.

Looking for HR software rather than a one-off calculation? See the Namya platform, pricing or the UAE HR guide.

Want the full explanation? Read our UAE gratuity calculation guide

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