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UAE Gratuity Calculator 2026

Calculate your end-of-service benefits under Federal Decree-Law 33/2021. Free, no sign-up, with a full year-by-year breakdown.

✓ Formula verified against UAE Labour Law · November 2026

Calculate your gratuity

For standard UAE private-sector employment (mainland & federal-law free zones).

Basic salary only — check your MOHRE contract. Exclude housing, transport & other allowances.
Unpaid absence days don't count as service. Paid annual/sick leave still counts.
Your estimated gratuity
AED 0
Daily basic wage (basic ÷ 30)–
Eligible service–
First 5 years (21 days/yr)–
Years after 5 (30 days/yr)–
Two-year cap applied?–
Resignation does not reduce gratuity under the current law. Your employer must pay within 14 days of your last working day.

How to use this calculator

  1. Enter your monthly basic salary — the figure on your MOHRE contract, not your total package.
  2. Add your start date and last working day — service is counted day by day and pro-rated.
  3. Deduct any unpaid leave days — unpaid absence doesn't count as service.
  4. Hit calculate — use the year-by-year breakdown to verify your final payslip.
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How UAE gratuity is calculated

Under Article 51 of Federal Decree-Law No. 33 of 2021 (in force since 2 February 2022), a full-time private-sector employee who completes at least one year of continuous service is entitled to:

Key facts at a glance

  • 21 days of basic salary per year for the first 5 years, 30 days per year after
  • Daily rate = basic salary ÷ 30 — total capped at 2 years' basic salary
  • Minimum 1 year of continuous service; resignation no longer reduces gratuity (law effective Feb 2022)
  • DIFC (DEWS) and ADGM are excluded — this formula covers mainland and federal-law free zones

Worked example

Basic salary AED 8,000, exactly 7 years of service.
Daily basic = 8,000 ÷ 30 = AED 266.67
First five years: 5 × 21 × 266.67 = AED 28,000
Years six and seven: 2 × 30 × 266.67 = AED 16,000
Total gratuity: AED 44,000

Why most online calculators get it wrong

Many calculators still apply the old 1980 labour law, which cut gratuity to one-third or two-thirds if you resigned early. That rule was abolished in 2022 — this calculator uses the current formula only. Another common error: using total salary instead of basic salary, which inflates the result.

Who this doesn't cover

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Common mistakes to avoid

  1. Using total salary instead of basic. Allowances for housing, transport and phone are excluded by law. A AED 12,000 package with a AED 6,000 basic produces half the gratuity most people expect — see our basic vs gross salary breakdown.
  2. Applying the old resignation penalty. Pre-2022 rules cut gratuity to one-third or two-thirds on resignation. That was abolished by Federal Decree-Law 33/2021 — resignation now pays the full amount after one year of service.
  3. Ignoring unpaid leave. Unpaid absence days are subtracted from your service period. Even two weeks of unpaid leave slightly reduces the pro-rata result.
  4. Rounding part-years up or down. Service is counted day by day — 4 years and 8 months is 4.667 years, not 4 or 5. Rounding costs you either way.
  5. Forgetting the 2-year cap. Gratuity can never exceed two years of basic salary, no matter how long you served. Very long-serving employees should verify the cap hasn't been applied twice or missed.
  6. Assuming free-zone coverage. DIFC (DEWS) and ADGM use their own schemes. Applying the 21/30-day formula there gives a meaningless number.

Pro tips

Second worked example: part-year service

Basic salary AED 12,000, service of 4 years and 8 months (4.667 years — all inside the first-five-year band).
Daily basic = 12,000 ÷ 30 = AED 400
Entitlement days = 4.667 × 21 = 98 days
Gratuity = 98 × 400 = AED 39,200
Note how the 8 months add real value: rounding down to 4 years would have given only AED 33,600.

Frequently asked questions

How is gratuity calculated in the UAE in 2026?

21 days of basic salary for each of the first five years, 30 days for each year after. Daily rate is basic ÷ 30, part years are pro-rated, and the total is capped at two years of basic salary — a cap most employees reach only after about 25.5 years of service. Minimum one year of continuous service.

Is gratuity calculated on basic salary or total salary?

Basic salary only. Housing, transport, telephone and other allowances are excluded by law. If your contract shows AED 12,000 total but AED 6,000 basic, the calculation uses 6,000.

Does resigning reduce my gratuity?

No. Since February 2022, resignation pays the same full gratuity as termination, provided you completed at least one year of service.

Am I entitled to gratuity as a part-time worker?

This calculator covers full-time private-sector employees. Part-time and other flexible work patterns fall under separate provisions of Cabinet Resolution No. 1 of 2022 — check your contract terms rather than applying the full-time 21/30-day formula directly.

What if my employer refuses to pay my gratuity?

The law requires all end-of-service dues, including gratuity, to be paid within 14 days of the contract end date — refusing is a violation. Keep your written breakdown from this calculator and your MOHRE contract, raise the matter formally with your employer, and if it stays unresolved you can file a labour complaint with MOHRE.

Do I get gratuity if I worked less than a year?

No — one full year of continuous service is the minimum. Unpaid leave days don't count toward service.

How quickly must my employer pay?

Within 14 days of your contract end date, along with final salary and leave encashment.

Does this apply in DIFC and ADGM?

No. DIFC uses the DEWS workplace savings scheme and ADGM has its own Employment Regulations with a different formula.

How is gratuity calculated for a part year, like 4 years and 6 months?

Pro-rata, day by day. Convert the part year to a decimal (4 years 6 months = 4.5 years), multiply by 21 days if you are still within the first five years of service, then multiply by your daily basic rate (basic ÷ 30). So with a AED 9,000 basic: 4.5 × 21 = 94.5 days × AED 300 = AED 28,350.

Is UAE gratuity taxable?

The UAE levies no personal income tax, so gratuity paid by your employer reaches you in full with no local deductions. Whether your home country taxes it depends on your tax residency there — worth checking if you file returns elsewhere.

Does maternity leave reduce my gratuity?

No. The 60-day maternity entitlement (45 days full pay, 15 days half pay) is paid leave and counts as continuous service. Only unpaid leave days are excluded from the service count.

My employer offered a lump sum instead of the calculated amount — should I accept?

Not before verifying it against the statutory formula. Run your own calculation first; a lump sum below the legal minimum short-changes you, and once you sign a final settlement acceptance it becomes very difficult to dispute. Get the employer's breakdown in writing and compare line by line.

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Who owes notice pay when a contract ends, and how it is calculated on gross salary.