UAE gratuity calculator
Your end-of-service pay under the 2021 law, calculated the way MOHRE's rules actually work — with every figure shown line by line.
If you're leaving a job in the UAE, your end-of-service gratuity is money you've already earned — not a bonus your employer chooses to give. This works it out the way the law does: 21 days of your basic salary for each of your first five years, then 30 days for every year after that.
How UAE end-of-service gratuity works (2021 law)
Your gratuity is a legal entitlement, not a goodwill payment. It's governed by Federal Decree-Law No. 33 of 2021, the labour law in force across mainland UAE since February 2022 — and it works differently from the old 1980 law that many online calculators still quietly use.
Who qualifies. You're entitled to gratuity once you've completed one continuous year of service (Article 51). Time on unpaid leave doesn't count toward that year, or toward later accrual.
What it's calculated on. Only your basic salary — the figure on your contract before housing, transport and any other allowances. Those allowances can be a large part of your monthly pay, which is why the gratuity figure is often smaller than people expect. It isn't a mistake; it's how the law defines the wage.
The formula. For your first five years, you earn 21 days of basic pay for each year. From year six onward, that rises to 30 days for each additional year. A day's pay is your basic monthly salary divided by 30. Part-years after the first are paid pro-rata, day for day.
Resignation vs termination — the part the clones get wrong. Under the current law, every contract is fixed-term, and resigning does not reduce your gratuity. The old rules that cut gratuity for resigning under an "unlimited contract" were repealed in 2022. If a calculator asks whether your contract is "limited or unlimited", it's working from a law that no longer applies. The one genuine exception is dismissal for a serious cause under Article 44 — and even there, the 2021 law no longer forfeits your gratuity, though such cases can be disputed.
The cap. Total gratuity is capped at two years' basic salary (Article 51(6)). This only bites after roughly 25 years of service, but the breakdown shows the cap line whenever it applies.
Free zones are different. DIFC and ADGM run their own end-of-service schemes (including funded plans like DEWS) and aren't covered here — see the rules guide for where they diverge.
The formula, written out
Daily wage = basic monthly salary ÷ 30
Days earned = (21 × years in your first 5) + (30 × years beyond 5), part-years pro-rated
Gratuity = daily wage × days earned
Final = the lower of that figure and 24 × basic monthly salary (the two-year cap)
Two worked examples
Resignation, mid-tenure. Basic AED 6,000 · 3 years 6 months · resigned. Daily wage 200; 3.5 × 21 = 73.5 days; 73.5 × 200 = AED 14,700. Resigning doesn't reduce it.
Termination, long service. Basic AED 15,000 · 9 years. Daily wage 500; first five years 105 days, years 6–9 another 120 days, 225 days total; 225 × 500 = AED 112,500.
When the cap bites: AED 20,000 basic over 30 years accrues AED 570,000, but the two-year cap limits it to AED 480,000 — shown on its own line in the breakdown.
What counts as "basic"
| Counts toward gratuity | Excluded |
|---|---|
| Basic salary on your contract | Housing allowance |
| Transport allowance | |
| Other allowances, bonuses, commissions, overtime |
Based on Federal Decree-Law No. 33 of 2021, Article 51 (incl. 51(6) cap) — last verified 14 June 2026.
Questions people ask
Does resigning reduce my gratuity in the UAE?
No. Under Federal Decree-Law 33 of 2021 every contract is fixed-term and resignation doesn't reduce your gratuity. The old reductions applied to unlimited contracts under the 1980 law, which was repealed in 2022.
Is gratuity based on my basic salary or my total salary?
Basic salary only. Housing, transport and other allowances are excluded by law, even though they're part of your monthly pay.
What's the minimum service to receive gratuity?
One continuous year (Article 51). Below a year, no gratuity is due — and unpaid leave doesn't count toward your service.
Is there a maximum gratuity?
Yes — total gratuity can't exceed two years' basic salary (Article 51(6)). In practice that only applies after about 25 years of service.
How is a part-year counted?
Day for day. After your first full year, each additional day adds to your gratuity pro-rata — you don't have to complete a whole year to be paid for the months you worked.
I'm in DIFC or ADGM — does this apply to me?
Not directly. The financial free zones run their own end-of-service schemes (such as DEWS), which work differently. We point you to the right guide rather than show a figure that wouldn't apply.
Keep going
Your settlement is usually more than gratuity alone.
- UAE gratuity rules, explained in full
- Leave salary calculator — encash unused annual leave
- Notice period calculator — pay in lieu of notice
- Overtime calculator · Daily wage calculator