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UAE gratuity calculator 2026
Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), you get 21 days of basic salary for each of your first five years and 30 days for each year after that, once you've worked at least one year. Only basic salary counts, and the total is capped at two years' basic pay.
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Get Savyit freeHow UAE gratuity is calculated
- Find your daily wage: basic monthly salary ÷ 30.
- First 5 years: 21 days' wage for each year.
- After 5 years: 30 days' wage for each extra year.
- Part years count in proportion once you have one full year. Unpaid leave days don't count.
- The total can't be more than 24 months of basic salary.
Only basic salary counts. Housing, transport and other allowances are left out. Since the 2021 law, resigning no longer cuts your gratuity, and it must be paid within 14 days of your last day.
Worked example: AED 10,000 basic, 7 years
| Step | Sum | AED |
|---|---|---|
| Daily wage | 10,000 ÷ 30 | AED 333.33 |
| First 5 years | 21 × AED 333.33 × 5 | AED 35,000 |
| Years 6–7 | 30 × AED 333.33 × 2 | AED 20,000 |
| Gratuity | AED 55,000 |
Gratuity by years of service (AED 10,000 basic)
| Service | Days of basic pay | Gratuity |
|---|---|---|
| 1 year | 21 | AED 7,000 |
| 2 years | 42 | AED 14,000 |
| 3 years | 63 | AED 21,000 |
| 4 years | 84 | AED 28,000 |
| 5 years | 105 | AED 35,000 |
| 6 years | 135 | AED 45,000 |
| 7 years | 165 | AED 55,000 |
| 8 years | 195 | AED 65,000 |
| 10 years | 255 | AED 85,000 |
| 12 years | 315 | AED 105,000 |
| 15 years | 405 | AED 135,000 |
| 20 years | 555 | AED 185,000 |
| 25 years | 705 | AED 235,000 |
| 30 years | capped | AED 240,000 (24-month cap) |
How long the payout lasts
AED 55,000 covers 183 days at AED 300 a day, or 110 days at AED 500. Between jobs, a daily number is easier to keep to than a lump sum. Plan your next salary →
Estimate under Federal Decree-Law No. 33 of 2021 (Article 51), for private-sector staff on the mainland and in most free zones. Not legal advice: your employer's final settlement and MOHRE decide the amount. Read the law.
Questions
How is end of service calculated in the UAE?
21 days of basic salary for each of your first five years, and 30 days for each year after, once you have one year of service. On AED 10,000 basic, 7 years gives AED 55,000.
How is gratuity calculated in the UAE for 5 years?
5 × 21 = 105 days of basic pay. On AED 10,000 basic that's AED 35,000.
How do I calculate gratuity in the UAE for 4 years?
4 × 21 = 84 days of basic pay. On AED 10,000 basic that's AED 28,000.
Do I get gratuity if I resign?
Yes, once you have at least one year of continuous service. The 2021 law removed the old cuts for resigning.
Do allowances count towards gratuity?
No. Only basic salary counts. Housing, transport and other allowances are left out.
Is gratuity different in DIFC or ADGM?
Yes. DIFC and ADGM have their own employment laws (DIFC uses the DEWS savings plan), so check with your employer. This calculator follows the federal law.
Do domestic workers get gratuity?
Domestic workers are covered by a separate law, Federal Decree-Law No. 9 of 2022, so their rules can differ.
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Estimates for planning, not financial advice. Everything is calculated in your browser; nothing you type is sent anywhere. Updated 2026-10-29.