UAE gratuity calculator
Work out the end-of-service gratuity for a foreign employee in the UAE private sector, from the last basic salary and the dates of service.
End-of-service gratuity
65,054.79 AED
- Service
- 8.01 years
- One day’s basic wage (÷ 30)
- 333.33
- First 5 years (21 days a year)
- 35,000.00
- After 5 years (30 days a year)
- 30,054.79
- Gratuity
- 65,054.79 AED
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A guide, not legal or tax advice. Confirm figures with your accountant or lawyer before you rely on them.
Rules from Federal Decree-Law No. 33 of 2021, Article 51, as summarised by the UAE government portal (u.ae) and Gulf News, checked on 14 October 2026. UAE nationals, free zones with their own law, and part-time contracts can follow other rules.
How UAE gratuity works
One year first
An employee who has not completed one year of continuous service gets no gratuity.
21, then 30 days
21 days’ basic wage for each of the first five years, and 30 days for each year after. Part-years count in proportion.
Two-year cap
The total cannot be more than two years’ wage.
Resigning or dismissed
Under the current law both get the same gratuity; the old reduction for resigning was removed in February 2022.
How is gratuity calculated in the UAE?
Day’s basic wage (basic ÷ 30) × 21 for each of the first five years, plus × 30 for each later year, with part-years in proportion. The total is capped at two years’ wage, and nothing is due before one year of service.
Is gratuity based on basic or total salary?
On the basic wage. Housing, transport and other allowances are not included unless the contract says otherwise.
Do I lose gratuity if I resign?
Not under the current UAE Labour Law: resignation and termination give the same gratuity once the employee has completed one year.
When must it be paid?
Within 14 days of the end of the contract, together with the other amounts due.
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