UAE Gratuity Calculator

Estimate your end-of-service gratuity under UAE Federal Decree-Law No. 33 of 2021.

Scope: covers private-sector employees under UAE federal labour law. The UAE has no personal income tax, so this is a gratuity calculator, not a broader take-home pay tool. DIFC and ADGM free zones have separate schemes — verify your specific zone's rules if applicable.
Gratuity uses basic salary only — housing, transport and other allowances are excluded by law. Minimum 1 year of continuous service required to qualify.
Estimated gratuity
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Enter your basic salary and years of service
Daily rate—
Total gratuity days—

How this is calculated

The daily wage is basic salary ÷ 30. For each of the first 5 years of service, you accrue 21 days' wage per year. For each year beyond 5, you accrue 30 days' wage per year. Total gratuity is capped at 2 years' total basic salary. Since the 2021 labour law reform, resignation and termination receive the same gratuity calculation — there's no longer a reduction for voluntary resignation.

Worked examples

AED 12,000 basic salary, 10 years: daily rate AED 400. First 5 years: 21 × 5 = 105 days. Next 5 years: 30 × 5 = 150 days. Total 255 days × AED 400 = AED 102,000.

AED 10,000 basic salary, 6 years: daily rate AED 333.33. First 5 years: 105 days = AED 35,000. 6th year: 30 days = AED 10,000. Total = AED 45,000.

Assumptions & limitations

  • Calculated on basic salary only — housing, transport, and other allowances, bonuses and overtime are excluded by law.
  • Requires a minimum of 1 full year of continuous service; less than a year earns no gratuity.
  • Assumes UAE mainland or standard free zone employment — DIFC (DEWS savings plan) and ADGM (gratuity/savings choice) have separate schemes.
  • Does not account for outstanding debt deductions or disputes over dismissal for cause, which can affect the final amount.

Sources

Federal Decree-Law No. 33 of 2021 Concerning the Regulation of Labour Relations, Article 51. See our sources page.

Frequently asked questions

Do I get full gratuity if I resign?

Yes. Since the 2021 labour law, resignation and termination are treated the same for gratuity purposes, provided you've completed at least 1 year of continuous service.

Are allowances included in the calculation?

No. Gratuity is calculated on basic salary only — housing, transport, utilities and other allowances are excluded under Article 51.

Is there a maximum gratuity amount?

Yes. Total gratuity is capped at 2 years' worth of basic salary, regardless of how many years you've worked.