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UAE end-of-service gratuity calculator

Under Article 51 of Federal Decree-Law No. 33 of 2021, a full-time foreign employee with at least one year of continuous service receives 21 days of basic pay for each of the first five years and 30 days for each year after that, pro rata for part years, up to a maximum of two years' pay.

Daily wage worked out as
Estimated gratuity AED 60,014

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    A worked example

    Basic salary AED 10,000 a month, 7 years and 6 months of service. A day's wage is 10,000 ÷ 30 = AED 333.33. The first five years earn 5 × 21 = 105 days, AED 35,000. The remaining 2.5 years earn 2.5 × 30 = 75 days, AED 25,000. Total: AED 60,014, well under the cap of 24 months' basic (AED 240,000).

    Gratuity in months of basic salary

    Years of serviceDays of basic payMonths of basic pay (÷30)On AED 10,000 basic
    0.50.00.00not due
    121.00.707,000
    242.01.4014,000
    363.02.1021,000
    5105.03.5035,000
    7165.05.5055,000
    10255.08.5085,000
    15405.013.50135,000
    20555.018.50185,000
    25705.023.50235,000
    26720.024.00240,000 *

    * Capped. With the ÷30 convention the total reaches two years' basic pay after 25.5 years of service and stops growing.

    Questions people ask

    Is gratuity based on gross or basic salary?

    On the last basic wage only (Art. 51(5)). The law defines basic wage as the wage in the contract without any allowances or benefits in kind (Art. 1), so housing and transport allowances are excluded.

    Do I get gratuity if I worked less than a year?

    No. The right starts once you complete one year of continuous service. After that, part years count pro rata (Art. 51(2) and 51(3)).

    Is gratuity reduced if I resign?

    Article 51 draws no distinction between resignation and termination and sets no reduction for resigning. The previous labour law (Federal Law No. 8 of 1980) was abrogated by the 2021 law.

    Does it apply to UAE nationals?

    No. Nationals are covered by the pensions and social security legislation (Art. 51(1)). This calculator is for full-time foreign employees.

    What about part-time or flexible work?

    Article 52 leaves gratuity for work patterns other than full time to the Implementing Regulation, so do not rely on this calculator for those.

    Can my employer deduct from it?

    Yes, amounts you owe under the law or a court judgment, on the conditions set by the Implementing Regulation (Art. 51(7)).

    When must it be paid?

    Within 14 days of the end of the contract, together with your other wages and entitlements (Art. 53). In a dispute, the claim goes to the Ministry of Human Resources and Emiratisation first (Art. 54).

    Why two options for the daily wage?

    The law does not say how a day's wage is derived from a monthly salary. Dividing by 30 is common; multiplying by 12 and dividing by 365 gives about 1.4% less. Check your contract or ask your employer.

    Does unpaid leave count?

    No, unpaid days of absence are taken out of the service period (Art. 51(4)). Enter them in the field above.

    Your other rights under the Labour Law

    Source

    Federal Decree-Law No. 33 of 2021 regulating labour relations, Articles 1, 51, 52, 53 and 54, English text published on the UAE government portal (u.ae), read on 24 September 2026. This is an estimate, not legal advice; your contract, the Ministry of Human Resources and Emiratisation and the courts are the reference. Law text (u.ae, PDF)