UAE Gratuity Calculator 2026 — End of Service Benefits
Calculate your end-of-service gratuity under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Enter your basic monthly salary and service dates — the calculator applies the official 21-day and 30-day formula, pro-rates partial years, and checks the two-year salary cap.
Basic salary only — housing, transport and other allowances are not counted.
Days of unpaid absence are excluded from the service period.
End of Service Statement
EligibleHow gratuity is calculated in the UAE
The daily wage is your basic monthly salary divided by 30. Partial years after the first full year are paid pro-rata. Under the current law, you receive full gratuity whether you resign or your contract is terminated, as long as you have completed one year of continuous service.
Example calculation
Basic salary AED 6,000, service 7 years:
- Daily wage = 6,000 ÷ 30 = AED 200
- First 5 years = 5 × 21 × 200 = AED 21,000
- Next 2 years = 2 × 30 × 200 = AED 12,000
- Total gratuity = AED 33,000
Who is eligible?
- Private-sector employees who have completed at least one year of continuous service.
- Both resignation and termination qualify for full gratuity under the current law.
- Unpaid leave days are deducted from the service period.
- Employees terminated for specific gross misconduct defined in the law may lose entitlement — check with MOHRE.
- DIFC and ADGM free zones run their own end-of-service savings schemes (for example DEWS in DIFC) instead of the federal formula.
Frequently asked questions
Is gratuity calculated on basic salary or gross salary?
Gratuity is calculated on your basic salary only. Housing, transport, and other allowances are excluded from the calculation.
Do I get gratuity if I resign?
Yes. Under Federal Decree-Law No. 33 of 2021, employees who complete one year of continuous service receive full gratuity whether they resign or are terminated.
How many days of salary do I get per year of service?
You get 21 days of basic salary for each of the first five years, and 30 days of basic salary for each year of service after the fifth year.
Is there a maximum gratuity amount?
Yes. The total end-of-service gratuity cannot exceed two years' worth of your salary.
Do I get gratuity for less than one year of service?
No. One full year of continuous service is required before any gratuity becomes payable.
Are unpaid leave days counted in my service period?
No. Days of unpaid absence are excluded when calculating your total length of service.
Does this calculator apply to DIFC and ADGM employees?
DIFC and ADGM have their own end-of-service systems, such as the DEWS savings plan in DIFC, so this federal formula does not apply there. Mainland companies and most other free zones follow the federal law used by this calculator.
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