UAE Gratuity Calculator 2026: Work Out Your End of Service Pay

Last updated: 24 October 2026

This gratuity calculator UAE employees can use in under a minute works out the end of service pay a private sector worker is owed under the UAE Labour Law. Enter your first and last working days and your last basic monthly salary, and it applies the legal formula: 21 days of basic pay for each of your first five years, then 30 days for every year after that.

You qualify once you have completed one full year of continuous service, and the total can never be more than two years of wages. The calculator below shows the full breakdown, and the rest of this guide explains each rule in plain language.

Gratuity calculator UAE: how to use it

The calculator needs four numbers, all of which you can find in your employment contract and your own records.

1. First working day: the start date on your employment contract with this employer.
2. Last working day: your final day of work, after any notice period.
3. Last basic monthly salary: the basic salary line only, without housing, transport or other allowances.
4. Unpaid absence days: leave this at zero unless you took leave without pay.

Press Calculate gratuity to see your counted service, daily basic wage, the amount for the first five years and, if you have worked longer, the amount for the years after that. The result is an estimate based on the formula in the law, and your final settlement from your employer is what counts.

How the UAE gratuity formula works

Gratuity is based on your last basic salary only, turned into a daily rate and multiplied by days of credit for each year you worked. The rules come from Article 51 of Federal Decree-Law No. 33 of 2021, the labour law that has applied to the private sector since 2 February 2022.

1. Find your daily basic wage. Divide your last basic monthly salary by 30. A basic salary of AED 6,000 gives a daily wage of AED 200.
2. Count your service. Take the time from your first to your last working day and remove any unpaid days of absence.
3. First five years: multiply the daily wage by 21 for each year, including part years once you have passed one full year.
4. Every year after five: multiply the daily wage by 30 for each year.
5. Apply the cap: the total cannot be more than two years of wages.

Written as one line, the gratuity calculation in the UAE is: (basic salary / 30) x 21 x years up to five, plus (basic salary / 30) x 30 x years beyond five.

Who qualifies for end of service gratuity

Full-time foreign employees in the UAE private sector qualify after one year of continuous service with the same employer. Below one year, nothing is due, however close you are to the anniversary.

• Covered: full-time expat employees of private sector companies on the mainland under the UAE Labour Law.
• UAE nationals: their end of service benefits follow the pension and social security law instead, so this formula does not apply to them.
• Not covered by the labour law: employees of federal and local government entities, the armed forces, police and security services, and domestic workers.
• Financial free zones: the DIFC and ADGM have their own employment laws with separate end of service rules, so check those directly.

Part-time employees and other work patterns are handled through a pro-rata rule, explained further down.

Worked examples of the gratuity calculation in the UAE

These examples use the same formula as the calculator, so you can check your own figures against them.

Example 1: three and a half years on AED 6,000 basic

The daily wage is AED 6,000 / 30 = AED 200. All of the service falls inside the first five years, so the calculation is AED 200 x 21 x 3.5 = AED 14,700. The half year counts because the employee has already completed one full year.

Example 2: seven years on AED 4,500 basic

The daily wage is AED 150. The first five years give AED 150 x 21 x 5 = AED 15,750. The two years after that are paid at 30 days each: AED 150 x 30 x 2 = AED 9,000. The total is AED 24,750.

Example 3: two years with 30 unpaid days, on AED 3,000 basic

Two years is 730 days. Removing 30 unpaid days leaves 700 counted days, which is about 1.92 years. The daily wage is AED 100, so the gratuity is AED 100 x 21 x 1.918 = about AED 4,027. The unpaid month cost this employee roughly AED 173.

Example 4: ten months of service

Ten months is short of the one-year minimum, so no gratuity is due. The calculator will say so if you enter dates less than a year apart.

Gratuity by years of service: quick reference table

This table shows how gratuity grows for an employee on AED 5,000 basic salary. The jump after year five comes from the switch from 21 to 30 days a year.

For a different salary, scale the last column: on AED 10,000 basic every figure doubles.

Basic salary vs total salary: what counts

Only your basic salary counts towards gratuity. The law defines basic wage as the wage in your employment contract, without allowances or benefits in kind.

That means housing, transport, utilities and furniture allowances are all left out, even though they arrive in the same monthly transfer. In practice, many expats in the UAE are surprised by how low their gratuity is because their basic salary is only part of their total package.

Before you calculate, open your employment contract and find the basic salary line. That is the number to enter, not the amount that reaches your bank account.

The law uses your last basic wage, so a raise in your final year lifts the gratuity for your whole service. Workers paid by piecework are calculated on their average daily wage instead.

Resignation, termination and the 2-year cap

Under the current law the same formula applies whether you resign or your employer ends your contract. The old law cut gratuity for employees who resigned early, and some websites still show those reductions, but Article 51 of the 2021 law contains no resignation cut.

The cap works the same way in every case: your total gratuity cannot be more than two years of wages. With 21 days a year for five years and 30 days a year after that, few employees ever reach it, but the calculator applies it if your figures go over.

Unpaid leave, part-time work and deductions

Three things can lower the gratuity figure, and the calculator handles the first one for you.

• Unpaid absence: days of absence without pay are taken out of your service period. Enter them in the optional field.
• Part-time and other work patterns: under Cabinet Resolution No. 1 of 2022, gratuity is worked out as a percentage of the full-time amount. The percentage is your contract’s annual working hours divided by full-time annual working hours. Temporary work shorter than one year earns no gratuity.
• Deductions: your employer may deduct amounts you owe under the law or a court judgment.

When your employer must pay gratuity

Your employer must pay your gratuity, final wages and other entitlements within 14 days of the end of your contract. This deadline is set by Article 53 of the labour law.

1. Ask HR for a written final settlement that shows your basic salary, counted service and gratuity figure.
2. Check it against this calculator. Small differences can come from how days are counted, but a large gap needs an explanation.
3. If the payment is late or wrong, raise it with your employer first, in writing.
4. If that does not work, file a labour complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its online services.

The savings scheme that can replace gratuity

Some employers have moved staff to a voluntary savings scheme instead of the traditional gratuity. Under Cabinet Resolution No. 96 of 2023, the employer pays a monthly contribution into an approved investment fund.

• 5.83% of basic monthly salary for employees with under five years of service.
• 8.33% of basic monthly salary for employees with five years or more.
• Employees can add their own voluntary contributions, up to 25% of their total monthly wage.
• At the end of service, the contributions plus investment returns are paid out within 14 days.

If your employer joined the scheme, the calculator only applies to the service before you were enrolled. The employer must settle that earlier gratuity when it moves you to the fund.

Common mistakes when calculating gratuity

• Using the total salary. Allowances never count. Only the basic salary line from your contract does.
• Using 21 days for every year. From year six onwards the rate rises to 30 days a year, which adds up quickly over a long career.
• Applying old resignation cuts. Reductions for resigning early belonged to the previous labour law and no longer apply.
• Forgetting unpaid leave. Long unpaid absences shorten the service period and lower the total.
• Counting gratuity before one year. Eleven months of service earns nothing, not eleven-twelfths of a year.

Frequently asked questions

Do I get gratuity if I resign in the UAE?

Yes, you get full gratuity if you resign after completing at least one year of continuous service. Under Federal Decree-Law No. 33 of 2021 the formula is the same whether you resign or your employer ends the contract: 21 days of basic salary for each of the first five years and 30 days for each year after that. The old reductions for resigning early were removed in 2022.

Is gratuity calculated on basic salary or total salary?

Gratuity in the UAE is calculated on your last basic salary only, not your total salary. Allowances for housing, transport, utilities and furniture are left out. Check the basic salary line in your employment contract and use that figure in the calculator, because the amount paid into your bank account each month is usually higher than the basic salary.

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

No, you do not get gratuity if you worked less than one year of continuous service with the same employer. The right to end of service pay starts only once you complete a full year. After that, part years count in proportion to the time you worked, so three and a half years earns three and a half years of gratuity.

When must my employer pay my gratuity?

Your employer must pay your gratuity within 14 days of the end of your employment contract, together with your final wages and other entitlements. This deadline comes from Article 53 of the UAE Labour Law. If the money is late or the amount is wrong, raise it in writing with your employer and then file a complaint with MOHRE.

Does unpaid leave reduce my gratuity?

Yes, unpaid leave reduces your gratuity because unpaid days of absence are not counted in your service period. For example, two years of service with 30 unpaid days counts as 700 days, about 1.92 years. Days you were paid for, such as paid annual leave, still count, so only absences without pay lower the total.

Can my employer deduct money from my gratuity?

Yes, your employer can deduct money from your gratuity, but only amounts you owe under the law or a court judgment. A court judgment against you is one example. Ask for any deduction to be listed separately on your final settlement so you can see exactly how the net figure was reached.

Key takeaways

• Gratuity starts after one full year of continuous service and is based on your last basic salary only.
• Use the gratuity calculator UAE section at the top of this page with your basic salary, not your total pay.
• The rate is 21 days of basic pay a year for the first five years and 30 days a year after that.
• Resigning no longer reduces gratuity under the current law.
• Unpaid absence days are removed from your service, and the total is capped at two years of wages.
• Your employer must pay within 14 days of the contract ending.

Sources

• End of service benefits for workers in the private sector, The Official Portal of the UAE Government (u.ae)
• Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, UAE Legislation portal
• Ministry of Human Resources and Emiratisation (MOHRE)