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UAE Gratuity Calculator

Work out your end-of-service gratuity under the UAE Labour Law from your basic salary and dates of service, with unpaid leave taken out and the 2-year cap applied.

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AED

Basic salary only, without housing, transport or other allowances.

days

Days of unpaid absence are not counted as service.

The law doesn't say which; employers and courts use both. Pick the one your contract or HR uses.

Gratuity

AED 61,602.74

Service counted
7.66 years
Days of wage earned
184.81 days
Daily basic wage
AED 333.33

For 7.7 years of service on a basic salary of AED 10,000.00, your gratuity is AED 61,602.74. Resigning doesn't reduce it under the 2021 Labour Law.

How it's worked out

  1. Service counted2,796 days − 0 unpaid, ÷ 3657.6603 years
  2. Daily basic wageAED 10,000.00 ÷ 30AED 333.33
  3. First 5 years at 21 days a year5 × 21105 days
  4. Years after 5 at 30 days a year2.6603 × 3079.81 days
  5. Gratuity before the cap184.81 days × AED 333.33AED 61,602.74
  6. Cap: 2 years' basic wageAED 10,000.00 × 24AED 240,000.00 (not reached)
  • Private-sector employees under Federal Decree-Law 33 of 2021. Government, DIFC and ADGM employees have their own rules.
  • Must be paid within 14 days of the contract ending, with any other dues.
  • Rules last checked 25 October 2026.

How UAE gratuity works

Gratuity is earned in days of basic wage per year of service: 21 days for each of the first 5 years, then 30 days for each year after. It starts once you have worked 1 full year, and part years are paid in proportion.

Gratuity = daily basic wage × (21 × years up to 5 + 30 × years after 5), up to 2 years' wage

Worked example

A basic salary of AED 10,000 for exactly 6 years gives a daily wage of 10,000 ÷ 30 = AED 333.33. The days earned are 5 × 21 + 1 × 30 = 135, so the gratuity is 135 × 333.33 = AED 45,000.

Which daily wage?

The law sets the days but not how to turn a monthly salary into a daily wage. Most employers divide by 30; some divide the yearly salary by 365, which gives a slightly lower figure. Pick the one your HR team or contract uses; the difference is shown in Compare scenarios.

Questions people ask

How is gratuity calculated in the UAE?

21 days of basic wage for each of the first 5 years of service, and 30 days of basic wage for each year after that. Part years count pro rata once you have completed 1 year.

Do I get gratuity if I resign?

Yes. Under Federal Decree-Law 33 of 2021, resigning no longer reduces your gratuity, as long as you have at least 1 year of continuous service.

Is gratuity based on basic or total salary?

On your last basic salary only. Housing, transport and other allowances are not included.

Is there a maximum gratuity?

Yes. The total cannot be more than 2 years' wage.

When must gratuity be paid?

Within 14 days of the end of the employment contract, together with other dues.

Formula and rules last checked 25 October 2026Written and tested by the CalcPenguin teamReport a problem

Sources: Federal Decree-Law No. 33 of 2021, Article 51 (Gulf News summary) · UAE Ministry of Human Resources and Emiratisation