UAE Gratuity Calculator
Estimate your UAE end-of-service gratuity using your basic salary and employment dates.
Enter your monthly basic salary only. Do not include housing, transport, bonuses, commissions, or other allowances.
Optional, defaults to 0. Days of unpaid leave are excluded from your qualifying service.
Enter your details to see your estimate
- Enter your monthly basic salary.
- Enter your joining date.
- Enter your last working date.
Who this calculator is for
This calculator covers the standard UAE federal private-sector end-of-service gratuity regime for a typical full-time expatriate employee, under Federal Decree-Law No. 33 of 2021. It may not apply to you if you are:
- A UAE national covered by a pension scheme
- Employed within the DIFC
- Employed within the ADGM
- A domestic worker, who is covered by a separate regime
- A government employee
- Enrolled in an alternative end-of-service savings scheme
- Covered by another special employment arrangement
How UAE gratuity is calculated
Gratuity is calculated on your basic salary only — housing, transport, bonuses, commissions and other allowances are excluded, because they can vary and aren't considered part of the fixed contractual wage.
Your daily basic wage is your monthly basic salary divided by 30. For each of your first 5 years of service, you accrue 21 days of that daily wage. For every year beyond 5, you accrue 30 days of that daily wage instead.
A partial year is prorated once you've completed at least 1 full qualifying year — for example, 6 months into your 6th year adds roughly half of that year's 30-day rate.
Days of unpaid leave or unpaid absence are subtracted from your service period before the calculation, since they don't count as qualifying service.
Finally, total gratuity is capped at 24 months' (2 years') wage, however long you worked.
Worked example
An employee with an AED 5,000 monthly basic salary and exactly 7 years of service:
- Daily basic wage: AED 5,000 ÷ 30 ≈ AED 166.67
- First 5 years: 21 days × daily wage × 5 years = AED 17,500.00
- Next 2 years: 30 days × daily wage × 2 years = AED 10,000.00
- Total estimated gratuity: AED 27,500.00
(Figures are rounded for display; the calculator itself works from the unrounded daily wage.)
Disclaimer
This calculator provides an estimate for employees covered by the standard UAE federal private-sector end-of-service gratuity rules. Actual entitlement may vary depending on your employment arrangement, unpaid absences, deductions, savings-scheme participation, free-zone rules, or other circumstances. This is not legal, tax, or financial advice. Check the latest MOHRE/UAE Government guidance for an official determination.
How is UAE gratuity calculated?
For eligible full-time employees with at least 1 year of continuous service, gratuity is 21 days of basic wage for each of the first 5 years of service, and 30 days of basic wage for each year after that, based on the daily basic wage (monthly basic salary ÷ 30).
Is gratuity based on basic salary or total salary?
Basic salary only. Housing allowance, transport allowance, bonuses, commissions and other allowances are excluded from the calculation.
Do I get gratuity if I worked less than one year?
No. Under the standard federal private-sector regime, an employee must complete at least 1 full year of continuous service to be entitled to any gratuity.
Are allowances included?
No. Gratuity is calculated on the last basic salary only, excluding all allowances and benefits.
Are unpaid leave days counted?
No. Days of unpaid leave or unpaid absence are excluded from the qualifying service period used to calculate gratuity.
What happens after five years?
The first 5 years of service continue to accrue at 21 days of basic wage per year. Every year of service beyond 5 years accrues at 30 days of basic wage per year.
Is there a maximum gratuity?
Yes. Total gratuity is capped at the equivalent of 24 months' (2 years') wage, regardless of how long you worked.
Does this apply to DIFC or ADGM?
No. DIFC and ADGM are separate free-zone jurisdictions with their own employment regulations. This calculator only covers the standard UAE federal private-sector regime.
Does this apply if my employer uses a savings scheme?
No. Employers enrolled in the MOHRE voluntary alternative end-of-service savings scheme follow different, contribution-based rules rather than this lump-sum gratuity formula.
Does resignation still reduce gratuity under current UAE law?
No. The reduced gratuity for resignation before 5 years of service was removed. Under the current law, resignation and termination are treated the same for gratuity purposes, provided the 1-year minimum service is met.
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