Calculator

End of Service Gratuity Calculator

Work out your UAE end-of-service gratuity under the 2021 Labour Law: 21 days' basic pay a year for five years, 30 days after, with the working shown.

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AED

Basic only — housing, transport and other allowances don't count.

Days of absence without pay are removed from service.

AED 50,726.03

End-of-service gratuity for 6 years 6 months of service

Daily basic wage (AED 10,000 ÷ 30)AED 333.33
First 5.00 years × 21 daysAED 35,000.00
Next 1.57 years × 30 daysAED 15,726.03
GratuityAED 50,726.03

Resigning or dismissed — the same entitlement

Under the 2021 Labour Law the gratuity no longer shrinks if you resign, and limited and unlimited contracts are treated alike. Your employer must pay it, with your final salary and other dues, within 14 days of your contract ending. They may deduct amounts you legally owe them.

Source: Federal Decree-Law No. 33 of 2021, Articles 51 and 53. A day's wage is taken as basic ÷ 30, the convention MOHRE uses; some employers use basic × 12 ÷ 365, which gives about 1.4% less. Free zones with their own employment law (DIFC, ADGM) differ. Not legal advice.

How to use

Enter your last basic monthly salary — not your total package — your start date and last working day, and any days of unpaid leave. The calculator counts your service, applies the 21-day and 30-day rates, and shows the working.

The rule, from the Labour Law

  • At least one year of continuous service before anything is due.
  • 21 days of basic wage for each of the first five years.
  • 30 days of basic wage for each year after five.
  • Part years counted in proportion; unpaid leave excluded.
  • Capped at two years' wage; paid within 14 days of leaving.

Worked example

Basic salary AED 10,000, so a day's wage is AED 333.33. After seven and a half years: five years × 21 days = 105 days, plus 2.5 years × 30 days = 75 days — 180 days in total, or AED 60,014.

Because only basic salary counts, your gratuity can be much smaller than your monthly pay suggests. The salary calculator shows how much of your package is basic and what gratuity it builds up each month.

Frequently asked questions

How is gratuity calculated in the UAE?

On your last basic salary: 21 days' basic wage for each of the first five years of service, and 30 days' for each year after that, with part years counted proportionally once you've completed a year. On AED 10,000 basic, three years gives AED 21,000 and seven and a half years gives AED 60,014.

Am I entitled to gratuity if I resign?

Yes. Under Federal Decree-Law 33 of 2021 a foreign full-time worker who has completed at least one year of continuous service is entitled to the full gratuity whether they resign or are dismissed. The old reductions for resigning before five years no longer apply to private-sector contracts under the Labour Law.

Do allowances count towards gratuity?

No. Only basic salary counts — housing, transport, utilities and other allowances are excluded. That's why the basic share of your package matters.

Is there a maximum gratuity?

Yes. The total can't exceed two years' wage. At 30 days a year after the fifth year, you would reach that only after about 25 years' service.

What if I worked less than a year?

No gratuity is due for service under one continuous year. Days of unpaid leave are taken out of your service before the calculation.

When must my employer pay it?

Within 14 days of the end of the contract, together with your final salary and any other entitlements. If it isn't paid, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).

Does this apply to UAE nationals and free zones?

UAE nationals receive end-of-service benefits through the pension system instead. DIFC and ADGM have their own employment laws and schemes (DIFC's DEWS, for example), so this calculator doesn't apply there. Other free zones follow the federal Labour Law.

Not financial advice

This tool provides estimates for general information only and is not financial, tax, or legal advice. Figures may not reflect the latest rules — verify with GPSSA, MOHRE, MoF, CBUAE, RERA and FTA before making decisions.
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  • Formatted for United Arab Emirates (en-AE), in AED.