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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.

The rules in United Arab Emirates

LawFederal Decree-Law No. 33 of 2021 on Labour Relations, Article 51
Who is coveredForeign full-time private-sector employees on the mainland. Emiratis are covered by the GPSSA pension instead
Wage usedLast basic wage only (no housing, transport or other allowances)
Days per year21 days for each of the first 5 years; 30 days for each year after
Daily wageBasic wage ÷ 30 (the common practice; the law does not fix the divisor)
Minimum service1 year of continuous service
Part yearsPaid in proportion; unpaid absence days are not counted
MaximumTwo years' wage
ResignationNo 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?
Take the last basic monthly wage, divide by 30 to get the daily wage, then pay 21 days for each of the first five years and 30 days for each year after. Part years are paid pro rata.
Do I get gratuity if I resign in the UAE?
Yes. Under the 2021 law resignation does not reduce gratuity, as long as you completed at least one year of continuous service.
Do I get gratuity for less than one year?
No. You need at least one year of continuous service on the mainland.
Is gratuity calculated on basic or total salary?
On basic salary only. Housing, transport and other allowances are not included.
Do unpaid leave days count?
No. Days of unpaid absence are taken out of the service period before gratuity is worked out.
Is there a maximum gratuity?
Yes. Total gratuity cannot exceed two years' wage.

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