UAE Gratuity Calculator
Work out end-of-service gratuity under the UAE Labour Law for private-sector employees, for employers budgeting a final settlement or employees checking theirs.
Estimated gratuity
AED 0
- Service counted
- Daily basic wage (basic ÷ 30)
- First 5 years at 21 days a year
- After 5 years at 30 days a year
- Cap (2 years' basic wage)
- Gratuity payable
Estimates only, based on UAE law and FTA guidance as of November 2026. Not tax or legal advice.
How UAE gratuity is calculated
- Daily wage: last basic monthly salary ÷ 30.
- Service: from joining date to last working day, excluding days of unpaid absence. At least one full year is needed.
- First five years: 21 days' basic wage for each year, pro rata for part-years.
- After five years: 30 days' basic wage for each year, pro rata for part-years.
- Cap: the total can't exceed two years' basic wage.
| Basic salary (AED) | Service | Gratuity (AED) |
|---|---|---|
| 5,000 | 3 years | 10,500 |
| 10,000 | 5 years | 35,000 |
| 10,000 | 8 years | 65,000 |
| 15,000 | 30 years | 360,000 (capped) |
For employers
Gratuity, unpaid salary and other dues must be paid within 14 days of the contract ending. Under IFRS (IAS 19) you should also carry an end-of-service provision in your accounts every year rather than expensing gratuity when someone leaves. It is one of the liabilities we most often find under-provided in due diligence. Our payroll service calculates the provision every month.
Who this calculator doesn't cover
DIFC employees are covered by the DEWS savings scheme, ADGM has its own employment regulations, and federal and local government employees follow pension and HR laws. Employers who joined the optional alternative end-of-service savings scheme also calculate differently. Part-time employees are paid pro rata to hours worked.
Frequently asked questions
How is gratuity calculated in the UAE?
21 days' basic wage for each of the first five years of service and 30 days' basic wage for each additional year, pro rata for part-years, capped at two years' basic wage. The daily wage is basic monthly salary divided by 30.
Do I get gratuity if I resign in the UAE?
Yes. Under Federal Decree-Law No. 33 of 2021, an employee who resigns after at least one year of continuous service receives the full gratuity. The old reductions for resignation no longer apply.
Is gratuity calculated on basic salary or total salary?
On the last basic salary only. Housing, transport and other allowances are not included.
Is there gratuity for less than one year of service?
No. An employee needs at least one year of continuous service to be entitled to gratuity.
When must gratuity be paid?
Within 14 days of the end of the employment contract, together with any other dues.
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