UAE Gratuity Calculator
Calculate your end-of-service gratuity under the UAE labour law. Works for both resignation and termination.
How UAE gratuity is calculated
Under Article 51 of UAE Federal Decree-Law No. 33 of 2021 (Labour Law), a full-time employee who completes at least one year of continuous service is entitled to end-of-service gratuity based on their last basic salary:
- 21 days’ basic salary for each of the first five years of service.
- 30 days’ basic salary for each additional year after five years.
- Part of a year is paid in proportion to the time worked.
- The total cannot exceed two years’ basic salary.
- Days of unpaid absence are not counted.
The daily wage is the monthly basic salary divided by 30. For example, with a basic salary of AED 6,000 and 7 years of service: daily wage = AED 200; first 5 years = 5 × 21 × 200 = AED 21,000; next 2 years = 2 × 30 × 200 = AED 12,000; total = AED 33,000.
Resignation vs termination
Under the current labour law (in force since February 2022), gratuity is the same whether you resign or are terminated, and the old “limited” and “unlimited” contract difference no longer reduces gratuity. Gratuity can be withheld only in limited cases set out in the law.
Based on UAE Federal Decree-Law No. 33 of 2021 (Labour Law) for mainland private sector employees. Free zones with their own employment rules (such as DIFC and ADGM), government employees and domestic workers may have different rules. This is an estimate, not legal advice; your employment contract and MOHRE are the final authority. Last reviewed 18 October 2026.
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Frequently asked questions
How much gratuity will I get after 5 years in the UAE?
After exactly 5 years you receive 21 days of basic salary for each year, which is 105 days of basic salary in total, or about 3.5 months of basic salary.
Is gratuity calculated on basic or gross salary?
Gratuity is calculated on your last basic salary only, not on allowances such as housing or transport.
Do I get gratuity if I resign before one year?
No. You need at least one year of continuous service to be entitled to gratuity.
Does resigning reduce my gratuity?
Not under the current law. Since February 2022, resignation no longer reduces gratuity for private sector employees.
When must the employer pay gratuity?
The law requires the employer to pay all end-of-service dues, including gratuity, within 14 days of the end of employment.