GCC gratuity calculator

Free tool · End of service

UAE Gratuity Calculator (2026): End of Service Benefits

Calculate your end-of-service gratuity in the UAE under Federal Decree-Law No. 33 of 2021, Article 51 - which salary counts, what resigning changes, the cap, and a worked example.

Quick answer

Gratuity in the UAE is 21 days' basic salary per year (years 1-5), then 30 days' basic salary per year (after year 5). Your last basic salary only - housing, transport and other allowances are excluded. Example: AED 12,000 for 7 years = AED 66,000.

Calculate your gratuity

Your last basic salary only - housing, transport and other allowances are excluded.

How did the job end?

Estimated gratuity

AED 66,000

  • 21 days' basic salary per year (years 1-5) × 5AED 42,000
  • 30 days' basic salary per year (after year 5) × 2AED 24,000

Estimate only - your contract, unpaid leave and deductions can change the final figure. Confirm with your employer or the labour ministry.

How gratuity is calculated in the UAE

How gratuity is calculated in the UAE
Service periodAward
0-521 days' basic salary per year (years 1-5)
5+30 days' basic salary per year (after year 5)
Salary used
Your last basic salary only - housing, transport and other allowances are excluded.
Minimum service
1 year of continuous service
Maximum award
24 months' salary
When it's paid
Within 14 days of the contract ending (Article 53).
Law
Federal Decree-Law No. 33 of 2021, Article 51

If you resign

Full award - resignation does not reduce it.

Worked example

Salary used for gratuity AED 12,000, 7 years of service, contract ended by the employer:

  • 21 days' basic salary per year (years 1-5) × 5AED 42,000
  • 30 days' basic salary per year (after year 5) × 2AED 24,000
  • Total gratuityAED 66,000

Rules worth knowing

  • You need at least one year of continuous service. After that, part-years count pro-rata and resignation no longer reduces the award.
  • The total gratuity cannot exceed two years' basic salary. Days of unpaid absence are not counted as service.
  • This is the mainland (MoHRE) rule. DIFC and ADGM free-zone employees follow their own employment laws, and employers in the voluntary savings scheme pay into a fund instead.

Frequently asked questions

How is gratuity calculated in the UAE?

Under Federal Decree-Law No. 33 of 2021, Article 51: 21 days' basic salary per year (years 1-5), then 30 days' basic salary per year (after year 5). Your last basic salary only - housing, transport and other allowances are excluded.

How much gratuity for 7 years on a AED 12,000 salary?

About AED 66,000 when the contract ends or the employer terminates it, using the formula above.

Do I get gratuity if I resign in the UAE?

Yes - the full award is paid on resignation once you complete 1 year of service.

What is the minimum service to qualify for gratuity?

You need at least 1 year of continuous service.

Is there a maximum gratuity amount?

Yes - it cannot exceed 24 months' wage.

When must the gratuity be paid?

Within 14 days of the contract ending (Article 53).

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