UAE Gratuity Calculator 2026

Calculate your UAE end-of-service gratuity under the 2022 Labour Law, for both resignation and termination.

Basic wage only — not housing, transport or other allowances.
Since the 2022 law, both cases use the same formula below service ≥ 1 year.
AED 0 estimated end-of-service gratuity
Service period—
Daily wage (basic ÷ 30)—
First 5 years (21 days/year)—
Beyond 5 years (30 days/year)—
Total gratuity—

In short

UAE end-of-service gratuity is 21 days of basic wage for each of the first five years of service and 30 days per year thereafter, paid after at least one year of service and capped at two years' total wage. It is calculated on basic salary only.

Who this is for: UAE private-sector employees leaving a job, and HR teams checking an end-of-service settlement, under the 2021 Labour Law.

Not tax or legal advice. This calculator gives a general estimate based on the federal UAE Labour Law and does not account for free-zone-specific rules, unpaid leave, or contractual terms that may affect your entitlement. Always confirm with MOHRE or a qualified HR/legal professional before relying on this figure.

How UAE gratuity is calculated

Since the UAE Labour Law reform (Federal Decree-Law No. 33 of 2021, effective 2 February 2022), gratuity is calculated the same way whether you resigned or were terminated, and whether your contract was "limited" or "unlimited" — the old distinction between the two contract types was removed.

  • Under 1 year of service: no gratuity is due.
  • 1 to 5 years: 21 days of basic wage for each year of service.
  • Beyond 5 years: 30 days of basic wage for each additional year.
  • Cap: total gratuity cannot exceed two years' total wage.

Gratuity is calculated on your basic wage only — housing, transport, and other allowances are excluded.

See also: UAE Leave Salary Calculator.

Source: MOHRE — End of Service Benefits, Federal Decree-Law No. 33 of 2021, Article 51.

UAE gratuity by basic salary and years of service (2022 Labour Law)

How much gratuity do I get after 2, 5 or 10 years in the UAE? Under Federal Decree-Law 33 of 2021 every full year of service earns 21 days of basic wage for the first five years and 30 days for each year after, calculated on the last basic salary (daily wage = basic ÷ 30), capped at two years' total wage. Resignation and termination now earn the same amount.

Basic salary1 yr2 yrs3 yrs5 yrs7 yrs10 yrs15 yrs
AED 3,000AED 2,100AED 4,200AED 6,300AED 10,500AED 16,500AED 25,500AED 40,500
AED 5,000AED 3,500AED 7,000AED 10,500AED 17,500AED 27,500AED 42,500AED 67,500
AED 8,000AED 5,600AED 11,200AED 16,800AED 28,000AED 44,000AED 68,000AED 108,000
AED 10,000AED 7,000AED 14,000AED 21,000AED 35,000AED 55,000AED 85,000AED 135,000
AED 15,000AED 10,500AED 21,000AED 31,500AED 52,500AED 82,500AED 127,500AED 202,500
AED 20,000AED 14,000AED 28,000AED 42,000AED 70,000AED 110,000AED 170,000AED 270,000

Housing, transport and other allowances are excluded; incomplete years are paid pro rata; unpaid leave days are deducted from service. Free-zone employees get the same unless their zone (e.g. DIFC, ADGM) runs its own savings scheme.

Assumptions

  • Gratuity is calculated on the basic salary you enter, not on allowances.
  • 21 days' basic wage per year for years 1–5 and 30 days per year after that, with a daily wage of basic ÷ 30.
  • Nothing is payable below one year of service; the total is capped at two years' basic wage.
  • Since the 2022 law, resignation and termination are calculated the same way; the reason you select only changes the explanatory note.

Worked examples

6 years of service, AED 10,000 basic salary

Daily wage = 10,000 ÷ 30 = AED 333.33
First 5 years: 333.33 × 21 × 5 = AED 35,000
Remaining 1 year: 333.33 × 30 × 1 = AED 10,000
Total gratuity ≈ AED 45,000

8 months of service

Service is under 1 year, so no gratuity is due under current UAE law, regardless of how the employment ended.

3 years of service, AED 6,000 basic salary

Daily wage = 6,000 ÷ 30 = AED 200
3 years, all within the first 5: 200 × 21 × 3 = AED 12,600

Frequently asked questions

Does resigning reduce my gratuity in the UAE?

Under the current law (since 2022), no — resignation and termination are calculated the same way once you have completed at least 1 year of service. This is different from the older law, which reduced gratuity for resignation under some limited contracts.

Is gratuity calculated on basic salary or total salary?

Basic wage only. Housing allowance, transport allowance, and other benefits are not included in the calculation.

Is there a maximum gratuity amount?

Yes — total gratuity is capped at two years' total wage under Article 51(3) of the Labour Law.

Do free zone employees get the same gratuity?

Most UAE free zones (including DIFC and ADGM, which have their own employment regulations) may have different rules — check your free zone's specific regulations.

Is this calculator legal advice?

No. It is a general guide based on the federal Labour Law. For your specific contract and circumstances, consult a licensed UAE labour lawyer or HR consultant.

How is gratuity calculated in the UAE in 2026?

21 days of basic salary for each of the first five years and 30 days for each year after, on your last basic pay (daily rate = basic ÷ 30), capped at two years' wages — the same for resignation and termination since the 2022 law. Ten years on a AED 10,000 basic is AED 85,000.

How much gratuity for 2 years in the UAE?

Two full years earns 42 days of basic salary — AED 7,000 on a AED 5,000 basic, AED 14,000 on AED 10,000. Anything under one year earns nothing.

How much gratuity for 5 years in the UAE?

Five years earns 105 days of basic salary: AED 17,500 on AED 5,000, AED 35,000 on AED 10,000, AED 52,500 on AED 15,000.

Is gratuity calculated on basic or gross salary in Dubai?

Basic salary only, across the whole UAE including Dubai and Abu Dhabi — housing, transport and other allowances are excluded. Employers sometimes set a low basic for this reason.

When must the employer pay gratuity?

Within 14 days of the contract ending under the 2022 Labour Law; unpaid gratuity can be claimed through MOHRE and the labour courts, usually without court fees for claims under AED 100,000.

Does the new unemployment insurance or savings scheme replace gratuity?

No. The mandatory ILOE unemployment insurance is separate, and the voluntary Savings Scheme (opt-in employers) replaces gratuity only for employees enrolled in it — everyone else keeps the end-of-service formula.

Written by the Calfyo editorial teamRules sourced from the official authorities named on this page and last checked How we source and check calculators

Found an error? Report it — tell us the inputs, the result you got, what you expected and the rule or source. Confirmed corrections are published within a week.