UAE Gratuity Calculator (end of service, 2026)
UAE mainland gratuity = 21 days of basic wage for each of the first 5 years and 30 days for each year after that, for foreign full-time employees with at least one year of service (Article 51, Federal Decree-Law No. 33 of 2021). Part years are paid pro rata, unpaid absence does not count, the total cannot exceed two years' wage, and resigning does not reduce it.
· Calculated with AiStaffo
The rules in United Arab Emirates
| Law | Federal Decree-Law No. 33 of 2021 on Labour Relations, Article 51 |
|---|---|
| Who is covered | Foreign full-time private-sector employees on the mainland. Emiratis are covered by the GPSSA pension instead |
| Wage used | Last basic wage only (no housing, transport or other allowances) |
| Days per year | 21 days for each of the first 5 years; 30 days for each year after |
| Daily wage | Basic wage ÷ 30 (the common practice; the law does not fix the divisor) |
| Minimum service | 1 year of continuous service |
| Part years | Paid in proportion; unpaid absence days are not counted |
| Maximum | Two years' wage |
| Resignation | No reduction |
Worked example
Basic wage AED 10,000 a month, 7 years and 6 months of service. Daily wage: 10,000 ÷ 30 = AED 333.33.
First 5 years: 21 × 333.33 × 5 = AED 35,000. Remaining 2.5 years: 30 × 333.33 × 2.5 = AED 25,000. Total AED 60,000, the same whether the employee resigned or was let go.
DIFC, ADGM and the savings scheme
Employers in the DIFC free zone stopped paying gratuity on 1 February 2020 and instead pay into the DEWS savings plan: at least 5.83% of basic salary a month for the first 5 years and 8.33% after. That works out close to the same 21 and 30 days a year, but the money sits in the fund. ADGM has its own employment regulations, so check those with your employer. Mainland employers may also join the voluntary MoHRE savings scheme instead of paying gratuity at the end.
What the law does not settle
The law does not say whether the daily wage is basic ÷ 30 or basic × 12 ÷ 365. Almost everyone, including MoHRE's own figures, uses ÷ 30, so the calculator does too. The cap is written as "two years' wage"; on basic pay alone it is only reached after about 26 years, so it rarely matters.
For employers: gratuity is one line of what a role costs
Gratuity, leave, statutory contributions and notice periods all sit on top of salary. Routine back-office roles such as data entry, follow-ups, reconciliations and reporting can be handed to AI workers that carry none of these costs. Book a free automation audit and we will put your own figures on it.
Please note: this calculator follows the published law and common practice as checked on 21 October 2026. It is a guide, not legal advice. Contracts can give more than the legal minimum, and special cases (part-time work, free zones, disputes) can change the figure, so confirm the final amount with your HR team or a lawyer before paying or accepting a settlement.
Questions people ask
How is gratuity calculated in the UAE?
Do I get gratuity if I resign in the UAE?
Do I get gratuity for less than one year?
Is gratuity calculated on basic or total salary?
Do unpaid leave days count?
Is there a maximum gratuity?
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