Leaving your job, or just want to know what you’ve built up? Use this free UAE gratuity calculator to estimate your end of service benefits under the current UAE Labour Law. It takes your last basic salary and your dates, and shows exactly how the amount is worked out.
UAE gratuity calculator
For private-sector employees under the UAE Labour Law. Enter your last basic salary and your dates.
An estimate based on Federal Decree-Law No. 33 of 2021. Your employer's final settlement may differ, for example if you are in the DIFC or ADGM, in a government job, or enrolled in the optional end-of-service savings scheme.
How gratuity is calculated in the UAE
Under Federal Decree-Law No. 33 of 2021, private-sector employees who complete at least one year of continuous service are entitled to end of service gratuity, worked out on their last basic salary (allowances such as housing and transport are not included):
- 21 days’ basic pay for each year of the first five years
- 30 days’ basic pay for each year after five years
- Part of a year counts pro-rata, as long as you’ve completed at least one year in total
- Unpaid leave days are not counted as service
- The total can’t be more than two years’ basic pay
One day’s basic pay is your monthly basic salary × 12 ÷ 365.
Worked example
Sara has a basic salary of AED 8,000 a month and has worked for 7 years. Her daily basic pay is 8,000 × 12 ÷ 365 = AED 263.01.
- First 5 years: 5 × 21 × 263.01 = AED 27,616
- Next 2 years: 2 × 30 × 263.01 = AED 15,781
- Total gratuity: about AED 43,397, well under the cap of AED 192,000 (24 months’ basic pay)
Does resigning reduce your gratuity?
Not under the new law. Since February 2022 every private-sector contract is a fixed-term contract, and gratuity no longer drops when you resign. The old cuts of one-third or two-thirds for resigning within five years applied to unlimited contracts, which no longer exist.
When gratuity must be paid
Your employer has to pay your end of service dues, including gratuity, within 14 days of your last working day. If it isn’t paid, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its app, website or call centre on 600590000.
Who this calculator doesn’t cover
- Employees in the DIFC and ADGM, which have their own employment laws and savings schemes
- Federal and local government employees, who follow separate HR laws and pension rules
- UAE and GCC nationals covered by pension schemes instead of gratuity
- Employees whose employer has moved them to the optional end of service savings scheme
All contracts are now fixed-term
Since the UAE Labour Law (Federal Decree-Law No. 33 of 2021) came into force in February 2022, all private sector employment contracts are fixed-term, and the old distinction between limited and unlimited contracts has gone. The most important change for gratuity is that resigning no longer reduces it: once you have completed at least one year of continuous service, you receive the full amount for your length of service whether you resign or your employer ends the contract.
Part-time and flexible work
Part-time employees are entitled to gratuity too, calculated in proportion to the hours they actually work compared with a full-time position. If you moved from full-time to part-time with the same employer, each period is worked out on its own basis. Keep copies of your contracts so the hours and dates are easy to prove.
What your employer can deduct
An employer may deduct amounts you genuinely owe from your gratuity, such as an outstanding salary advance or a loan from the company, but only for debts that relate to the employment. They cannot reduce gratuity as a penalty or hold it back because you are joining a competitor. If you disagree with a deduction, ask for the calculation in writing and raise it with MOHRE.
Free zones with their own rules
Most free zones follow the federal gratuity rules, but the financial free zones have their own employment laws. In the Dubai International Financial Centre (DIFC), employers pay monthly contributions into a savings plan called DEWS instead of a lump-sum gratuity, and the Abu Dhabi Global Market (ADGM) has its own regulations as well. If you work in one of these free zones, this calculator will not reflect your entitlement.
The voluntary savings scheme
The UAE has also approved an alternative end-of-service system in which private sector employers can choose to pay monthly contributions into approved investment funds instead of a traditional gratuity. Participation is voluntary for employers, and employees can usually add their own savings. If your employer has joined such a scheme, your end-of-service money comes from the fund rather than from the formula above.
Your final settlement checklist
- Unpaid salary up to your last working day
- Payment for any annual leave you have not taken
- Your end-of-service gratuity
- A return flight ticket if your contract or company policy includes one
- Any agreed bonuses or commissions already earned
Ask for the settlement as a written breakdown before you sign it, and check each line against your payslips. Your employer should cancel your work permit and residence visa after the settlement, so keep track of the dates if you are moving to a new job or leaving the UAE.
Frequently asked questions
How much gratuity will I get after 5 years in the UAE?
After 5 years you get 21 days’ basic pay for each year, which is 105 days in total. On a basic salary of AED 10,000, that is about AED 34,521.
Is gratuity calculated on basic salary or total salary?
On your last basic salary only. Housing, transport and other allowances are not included unless your contract says otherwise.
Do I get gratuity if I resign before one year?
No. You must complete at least one year of continuous service with the same employer to be entitled to gratuity.
Is there a maximum gratuity in the UAE?
Yes. Total gratuity can’t exceed two years’ basic pay, which is 24 times your last monthly basic salary.
Do unpaid leave days affect my gratuity?
Yes. Days of unpaid leave are not counted as service, so they reduce the period your gratuity is calculated on.
How long does my employer have to pay gratuity?
Your employer must pay all end of service dues, including gratuity, within 14 days of your contract ending. If they don’t, you can complain to MOHRE.
How much gratuity will I get after 3 years in the UAE?
After 3 years you get 21 days of basic pay for each year, 63 days in total. On a basic salary of AED 6,000 that is about AED 12,427.
How much gratuity after 10 years in the UAE?
For 10 years you get 21 days a year for the first five (105 days) and 30 days a year for the next five (150 days), 255 days in total. On a basic salary of AED 10,000 that is about AED 83,836, below the two-year cap.
Is the notice period counted in gratuity?
Yes. The notice period is still part of your employment, so the days you work during notice count towards your service and your gratuity.
Are UAE nationals entitled to gratuity?
UAE nationals in the private sector are generally covered by the pension scheme run by the General Pension and Social Security Authority instead of the gratuity rules in this calculator.
How do I claim my gratuity after resigning?
Your employer should pay it with your final settlement within 14 days of your last working day. If it is not paid, file a complaint with MOHRE through its app, website or on 600590000.