UAE Gratuity Calculator
Estimate your end-of-service gratuity under UAE labour law — based on your basic salary and length of service.
Estimate only. Not legal or financial advice — confirm final figures with your employer or MOHRE.
How UAE gratuity is calculated
End-of-service gratuity in the UAE is governed by Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. It applies to private-sector employees — both on mainland and in most free zones — who complete at least one year of continuous service.
The calculation runs on basic salary only. Housing allowance, transport allowance, bonuses, commissions and overtime are all excluded — a detail that catches a lot of people out, since a contract might list a much higher total salary than the basic figure the gratuity is actually built on.
The formula itself is a two-tier system based on length of service:
- First 5 years: 21 days of basic salary for each year
- Year 6 onward: 30 days of basic salary for each additional year
- Partial years are pro-rated once the 1-year eligibility mark has passed
Rate by years of service
| Years of service | Rate |
|---|---|
| Less than 1 year | No gratuity |
| 1–5 years | 21 days' basic salary per year |
| 6+ years | 30 days' basic salary per year beyond year 5 |
| Any tenure | Capped at 24 months' basic salary (Article 53) |
Eligibility
You need a minimum of one full year of continuous service with the same employer. Under a year, no gratuity is payable regardless of the reason employment ended.
Resignation vs termination
Under the current law, gratuity is generally payable whether the employee resigned or the employer ended the contract — this changed with the 2022 reform, which removed the old reduced-gratuity penalty for early resignation that used to apply under the previous law. The one exception: gratuity is forfeited entirely if employment ends through dismissal for cause under Article 44 (gross misconduct).
Some employers now offer a voluntary Savings Scheme (introduced under a 2023 Cabinet Resolution) as an alternative to traditional gratuity for certain skilled employees above a salary threshold. If you're enrolled in this, your end-of-service payout works differently — check your scheme statement rather than this calculator.
DIFC and ADGM are different
If your employment is registered under DIFC or ADGM — Dubai and Abu Dhabi's financial free zones — Article 51 gratuity doesn't apply to you. These zones run DEWS (DIFC Employee Workplace Savings) or an equivalent qualifying scheme instead: a defined-contribution plan where your employer pays into an investment account monthly, rather than a lump sum calculated at the end. This calculator is built for Article 51 and doesn't cover DEWS.
Frequently asked questions
Is gratuity calculated on my total salary?
No — basic salary only. This is the single most common misunderstanding, and the biggest reason people are surprised by their final number.
What if I worked partial years, like 3 years and 7 months?
The extra months are pro-rated. In this example: 3 full years at 21 days/year, plus 7/12 of a year's worth of the 21-day rate.
Can my employer deduct anything from my gratuity?
Outstanding debts owed to the employer can generally be deducted from the final settlement, including gratuity. This calculator shows the gross figure before any such deductions.