How to Calculate Your UAE Gratuity (End-of-Service Benefit)
If you work for a private company in the UAE, you earn a gratuity when your job ends. This is also called an end-of-service benefit. You must complete at least one year of continuous service. The amount is based on your last basic salary. You get 21 days of basic wage for each of the first five years. You get 30 days for each year after that. Part years count too, in proportion. Since February 2022, all private-sector contracts are fixed-term. The old limited and unlimited contract rules no longer apply to new service. Under the old unlimited contracts, resigning could reduce your gratuity. That reduction no longer applies.
At a glance
- Cost:
- Free (employer pays)
- Total time:
- 15 minutes to calculate
- Steps:
- 7 steps
- Where to apply:
- mohre.gov.ae
Last reviewed October 2026 against official sources. Re-checked every 6 months · next review due April 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official UAE sources(October 2026).
0 of 7 steps
- Before You Go Self-check
Confirm you are eligible
You need at least 1 year of continuous service. Days of unpaid leave do not count. The federal private-sector Labour Law must cover your job. The gratuity is paid when your contract ends. It does not matter if the contract expires, you resign, or you are dismissed. Some workers are not covered. Workers with under 1 year of service get nothing. UAE nationals are not covered, because they have a pension under the GPSSA system instead. Government-sector expats are not covered. Domestic workers are not covered. DIFC and ADGM employees are not covered either. They have their own systems.
Click to mark as done
- Fill / Prepare 10 min
Find your basic wage
Use the basic salary in the contract your employer registered with MOHRE. Use your LAST basic salary. Do not include allowances, such as housing or transport. Allowances do not count in this calculation.
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- Fill / Prepare 10 min
Count your service time
Count your full years of service. After the first year, part years count too, in proportion. Days of unpaid leave do not count. Take them off your total.
Click to mark as done
- Fill / Prepare 5 min
Apply the formula
First, work out your daily basic wage. Divide your last monthly basic wage by 30. Then use this formula. Gratuity = (21/30 × basic × first 5 years) + (30/30 × basic × years beyond 5). Part years count in proportion. The total cannot be more than 2 years of total wage. This rule is in Federal Decree-Law 33/2021, Art. 51. Use the calculator below to run your own numbers.
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- Follow Up 15 min
Check the employer settlement
Compare your number with your employer's end-of-service statement. Check two common errors. Did your employer use your gross salary instead of your basic salary? Did they leave out a part year that should count in proportion?
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- Receive Within 14 days of contract end
Collect payment
Your employer must pay all your wages and everything you are owed within 14 days of the end of your contract. This is Art. 53.
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- Follow Up Varies
Dispute if short-paid
File a labour complaint with MOHRE. If you cannot solve the problem, the case goes to court. Note one point. Compensation for arbitrary dismissal is separate from gratuity. A court can award it, and it can be up to 3 months of wage.
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Calculator
UAE Gratuity Calculator
Estimate your end-of-service gratuity under Federal Decree-Law 33/2021: 21 days of basic wage per year for the first 5 years, 30 days per year after, pro-rated for partial years.
Estimated gratuity
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Eligibility
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Daily basic wage (basic ÷ 30)
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First 5 years (21 days/yr)
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Beyond 5 years (30 days/yr)
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Service counted (years)
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Estimate only. Estimate only. Covers federal private-sector employees. Excludes DIFC/ADGM, government, and domestic workers (separate regimes). The cap is applied against basic wage because the calculator takes basic salary only; under Art. 51(6) the legal cap is two years' total Wage (basic + allowances). Source: Federal Decree-Law 33/2021, Art. 51 (MOHRE)
FAQ
Frequently Asked Questions
Does resigning reduce my gratuity?
No. Under the current law, all private-sector contracts are fixed-term. Resigning does not reduce your gratuity. The old rules for limited and unlimited contracts are history. They only applied before February 2022.
Is gratuity based on basic or gross salary?
Your gratuity is based on your basic salary only. This is the rule from MOHRE and u.ae. Allowances do not count. But the 2-year cap is different. The cap is measured against your total wage.
What if my employer does not pay?
File a complaint with MOHRE. If you cannot solve the dispute, it goes to court.
How do I calculate UAE gratuity?
Divide your last monthly basic salary by 30. This gives you your daily wage. Multiply it by 21 days for each of the first 5 years of service. Multiply it by 30 days for each year after that. Part years count in proportion. The total cannot be more than two years' total Wage (basic + allowances). This cap is in Art. 51(6). Here is an example. With a basic salary of AED 10,000 and 7 years of service, you get about AED 55,000. Use the gratuity calculator on this page to work out your exact amount.
Do unpaid leave days count toward UAE gratuity?
No. Days of unpaid leave do not count towards your period of service. The calculator takes your unpaid-leave days off your total service first. It converts the days to years. Then it applies the formula.
Is there a maximum gratuity in the UAE?
Yes. Your total end-of-service gratuity cannot be more than two years' Wage. In the law, "Wage" means your total wage, basic salary plus allowances. This is a different term from "Basic Wage", which is used in other parts of Art. 51. Please note one point about the calculator on this page. The calculator only asks for your basic salary, so it applies the cap to your basic wage. If you receive allowances, your true legal cap is higher.
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