UAE Gratuity Calculator — End of Service Pay
Calculate your end-of-service gratuity exactly the way UAE Labour Law defines it: 21 days of basic salary per year for the first five years of service, 30 days per year after that, capped at two years' pay. Works for resignation and termination alike.
Basic only — exclude housing, transport and other allowances. It's the "basic salary" line in your contract.
Days of unpaid absence don't count towards service (MOHRE rule).
Estimated gratuity
AED 0
Enter your basic salary and dates to see the breakdown.
| Service period | — |
| Daily basic wage (basic ÷ 30) | — |
| Years 1–5 (21 days/year) | — |
| After year 5 (30 days/year) | — |
| Two-year salary cap | — |
| Total gratuity | — |
Estimate only. Your final amount depends on your contract, any lawful deductions and your employer's records. Gratuity must be paid within 14 days of your end date — if it isn't, you can file a complaint with MOHRE (80060). This is general information, not legal advice.
How gratuity is calculated in the UAE (2026)
For full-time private-sector employees under Federal Decree-Law No. 33 of 2021 (in force since 2 February 2022):
years 1–5 → 21 × daily wage per year
after year 5 → 30 × daily wage per year
maximum → total may not exceed 2 years' pay
Worked example. Basic salary AED 10,000, exactly 7 years of service. Daily wage = 10,000 ÷ 30 = AED 333.33. First five years: 5 × 21 × 333.33 = AED 35,000. Years six and seven: 2 × 30 × 333.33 = AED 20,000. Total gratuity = AED 55,000.
- You qualify after one year of continuous service; fractions of a year beyond that are paid pro-rata.
- Only the basic salary counts — allowances are excluded.
- Since the 2022 law, resignation does not reduce your gratuity: the old ⅓ / ⅔ reductions for unlimited contracts are gone.
Convention note: like MOHRE's own examples, this tool uses daily wage = basic ÷ 30. Some calculators use basic × 12 ÷ 365, which gives a result about 1.4% lower. We show the convention so you can compare like for like.
How gratuity grows — AED 10,000 basic salary
The kink at year five is why long tenure pays: the accrual rate jumps almost 43% (21 → 30 days of basic per year). The legal cap of two years' pay sits far higher, at AED 240,000 on this salary.
Frequently asked questions
Is gratuity calculated on basic or gross salary?
Basic salary only. Housing, transport and other allowances are excluded from the calculation by law.
Do I get full gratuity if I resign?
Yes. Under Federal Decree-Law No. 33 of 2021 the entitlement is the same whether you resign or are terminated. The old reductions for resigning from an unlimited contract were abolished in February 2022.
What is the minimum service to qualify?
One year of continuous service. Below one year there is no statutory gratuity.
Is there a maximum gratuity?
Yes — the total may not exceed two years' pay. This calculator applies the cap as 24 × your monthly basic salary.
Do unpaid leave days count towards service?
No. MOHRE has confirmed that days of unpaid absence are excluded from the service period used for the calculation.
What about DIFC and ADGM employees?
They are outside this calculator. DIFC replaced gratuity with the DEWS savings plan (monthly employer contributions), and ADGM runs its own workplace-savings regime. This tool covers employment under the federal Labour Law.
Are domestic workers covered?
Domestic workers have a separate federal law with different end-of-service rules, so this calculator doesn't apply to them.
Can my employer withhold gratuity if I'm dismissed?
End-of-service benefits are a protected entitlement under the current law; lawful deductions (for example, documented debts) are the only offsets. If payment doesn't arrive within 14 days of your end date, you can raise a complaint with MOHRE.
What is the MOHRE savings scheme?
A voluntary alternative (Cabinet Resolution No. 96 of 2023): employers may enrol and pay monthly contributions of 5.83% of basic wage, rising to 8.33% after five years of service, into an investment fund instead of accruing gratuity. If your employer enrolled you, the fund replaces gratuity for that period — and your pre-enrolment years are frozen at the basic wage on the enrolment date. The two are not equivalent once your salary rises: see the savings scheme against statutory gratuity.
Does contract type (limited/unlimited) still matter?
No. Since February 2022 all standard contracts follow the same gratuity formula — the limited/unlimited distinction no longer affects the calculation.
Employer not paying? How to file a MOHRE complaint — step by step
- Deadline first: gratuity is due within 14 days of your last working day. Past that, you have a live complaint.
- Call 80060 (MOHRE hotline) or file through the MOHRE app / mohre.gov.ae → Labour Complaints — you'll need your Emirates ID and employer details from your contract.
- Mediation: MOHRE contacts the employer and attempts settlement — most gratuity disputes end here.
- Escalation: unresolved cases are referred to the labour courts; claims under AED 50,000 are heard by MOHRE itself under the current framework, and court fees for workers are waived for claims up to AED 100,000.
- Keep this calculator's breakdown handy — going in with the exact legal figure changes the conversation.
Sources
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations — UAE Legislation portal
- End-of-service benefits — u.ae, the official UAE Government portal
- Ministry of Human Resources & Emiratisation — mohre.gov.ae
Formulas re-verified against official sources on 28 September 2026. Spotted an issue? It will be reviewed in our weekly verification cycle.
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- UAE Salary & Take-Home Calculator — your basic/gross split drives this number.
- Overstay Fine Calculator — leaving the UAE? Mind the grace periods.
Gratuity guides
- Employer not paying your gratuity? — the 14-day rule and the free MOHRE complaint, step by step.
- Basic salary vs total salary — why the payout is smaller than you expected, and what you can challenge.
- Resignation vs termination — the old 1/3 and 2/3 deductions are gone; here's what still differs.
- Limited vs unlimited contracts — why the 2022–2023 conversion did not restart your service term, and the transitional clause that still gets quoted at long-serving staff.
- Working in the DIFC? — gratuity stopped accruing in 2020; DEWS contributions of 5.83%/8.33% replaced it.
- Domestic workers are outside this law entirely — maids, nannies, cooks and drivers fall under Decree-Law 9/2022, with 30 days' leave, a ten-day payout deadline and only three months to bring a claim.
- Paying gratuity rather than receiving it? — the employer's version: Article 51 clause by clause, the five lawful deductions, the part-time formula and the 14-day deadline.
- Sick leave and your service term — unpaid sick days come out of the service term the gratuity is built on, under Article 51(4).
- Untaken annual leave is a separate payment — same basic-wage input, different rule; do both before you sign a full-and-final.