Our gratuity calculator UAE and end of service calculator UAE help private-sector employees estimate their entitlements. Under UAE labour law, gratuity is based on your last basic salary, not your total salary package: 21 days per year for the first five years, then 30 days per additional year.
Enter your details below to calculate your estimated gratuity and unused annual leave pay.
UAE Gratuity & End of Service Calculator
For private-sector employees under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Updated for 2026.
Your employer must pay these dues within 14 days of your contract ending (Article 53). Gratuity is not reduced for resignation under the current law.
This calculator gives an estimate for guidance only and is not legal advice. It does not apply to UAE/GCC nationals covered by pension schemes, DIFC or ADGM employees (separate laws), domestic workers, or the public sector. Your contract, deductions owed to the employer, or dismissal under Article 44 can change the final amount.
How the UAE gratuity calculator and end of service calculator work
The calculator estimates gratuity from your final basic salary and eligible service. It uses monthly basic salary ÷ 30 to find your daily wage, applies 21 days per year for the first five years and 30 thereafter, and calculates unused annual leave separately. These rules derive from Federal Decree-Law No. 33 of 2021, Articles 29 and 51.
Enter the six fields in this order:
-
Last basic monthly salary (AED): Enter the basic component of your final monthly wage, not your gross package. Housing and transport allowances are excluded from the standard gratuity calculation.
-
Joining date: Select the date your continuous employment began.
-
Last working day: Enter your final working date. Where paid notice, garden leave or another arrangement makes the contractual end date different, confirm the legally relevant end date.
-
Unpaid leave/absence days: Enter qualifying unpaid days that must be excluded from your gratuity service period.
-
Unused annual leave days: Enter your outstanding accrued leave balance to estimate payment in lieu.
-
Contract type: Choose Full-time or Part-Time.
Under Article 52 and the implementing rules, part-time gratuity depends on contractual working hours relative to full-time hours. Selecting Part-Time alone cannot establish that ratio.
The UAE gratuity calculator provides an estimate, not a binding determination. A MOHRE gratuity calculator or independent end of service calculator should also be checked against employment records, particularly where employment was interrupted or transferred.
The result does not automatically include notice pay, outstanding wages, reimbursements or lawful deductions.
Who is covered? This formula concerns eligible foreign employees under the federal private-sector law. UAE nationals are subject to pension and social-security rules, including applicable GPSSA provisions.
DIFC employees are governed by separate arrangements, including DEWS. ADGM employees are governed by the ADGM Employment Regulations 2024, effective from 1 April 2025. Neither regime should be calculated using this federal-law tool without separate review.
Gratuity formula, step by step, with corrected examples
The answer to how to calculate gratuity in the UAE begins with Article 51 of Federal Decree-Law No. 33 of 2021.
The UAE labour law gratuity calculation follows these steps:
-
Divide your last monthly basic salary by 30.
-
Calculate 21 days of basic pay for each eligible year within the first five years.
-
Add 30 days of basic pay for each eligible year beyond five years.
-
Include the eligible proportion of an incomplete year, after excluding unpaid absence.
-
Apply the maximum gratuity cap of 24 months’ basic salary.
For the first five years:
For service beyond five years:
Three worked gratuity calculation examples
These are full-time employee illustrations under the federal rules, which apply to eligible employment in both Dubai and Abu Dhabi.
|
Example |
Calculator inputs |
Arithmetic |
Estimated gratuity |
|---|---|---|---|
|
Dubai — 3 years |
Basic: AED 8,000; Joining: 01/01/2023; Last working day: 01/01/2026; Unpaid: 0; Unused leave: 0; Full-time |
(8,000 ÷ 30) × 21 × 3 |
AED 16,800 |
|
Abu Dhabi — 7 years |
Basic: AED 15,000; Joining: 01/01/2019; Last working day: 01/01/2026; Unpaid: 0; Unused leave: 0; Full-time |
(15,000 ÷ 30) × [(21 × 5) + (30 × 2)] |
AED 82,500 |
|
Abu Dhabi — 4 years, 7 months |
Basic: AED 10,000; Joining: 01/01/2021; Last working day: 01/08/2025; Unpaid: 20; Unused leave: 0; Full-time |
(10,000 ÷ 30) × 21 × (1,653 ÷ 365) |
AED 31,701.37* |
* The third illustration uses 1,673 elapsed calendar days, less 20 unpaid days, divided by 365. It is a provisional day-count illustration. The actual embedded calculator must use the same service-day and partial-year conventions before this result is published as a matching example.
The gratuity calculator Dubai, gratuity calculator Abu Dhabi and end of service calculator Abu Dhabi searches lead to the same federal formula for employment governed by Federal Decree-Law No. 33 of 2021. The emirate alone does not change the rate.
Example of the two-year cap
Consider an employee with 35 completed years of eligible service and an AED 10,000 monthly basic salary.
Uncapped gratuity = (10,000 ÷ 30) × [(21 × 5) + (30 × 30)] = AED 335,000.
The statutory maximum is 10,000 × 24 = AED 240,000. The payable gratuity is therefore capped at AED 240,000.
Resignation vs termination: what changes?
Under the former Federal Law No. 8 of 1980, resignation could reduce gratuity for employees covered by the previous indefinite-contract rules.
The current framework changed that position.
For eligible employees governed by Article 51 of Federal Decree-Law No. 33 of 2021, end of service gratuity UAE calculations generally use the same 21/30-day formula whether the employee resigns or is dismissed.
Consider two employees with identical salaries and service histories. One resigns; the other is terminated. Their standard accrued gratuity does not automatically differ because of who ended employment.
This distinction matters when calculating end of service benefits in the UAE. Employers should not reuse the former resignation-reduction percentages in a current-law calculation.
Dismissal without notice under Article 44 also does not automatically cancel gratuity accrued under Article 51. The employer must distinguish the legal reason for dismissal from any separate, properly established deduction or claim.
Termination may affect other entitlements. Notice pay, compensation disputes or other contract-specific payments need separate assessment and should not be confused with the basic gratuity formula.
Leave salary calculation in UAE
Under Article 29 of Federal Decree-Law No. 33 of 2021, employees may be entitled to payment for accrued annual leave remaining when employment ends.
For leave salary calculation in the UAE, the calculator uses:
For example, AED 12,000 basic salary and 10 unused days produce AED 4,000.
An annual leave calculator UAE estimate should reflect the verified leave balance, including any applicable part-year entitlement and lawful adjustments. The on-exit calculation must not be confused with pay received when actually taking annual leave.
For a fuller explanation, read our leave salary calculation in UAE
When gratuity can be withheld or reduced
Article 51 sets the starting point for entitlement. Employer practice cannot override the statutory formula.
Less than one year: An eligible foreign worker normally needs at least one year of continuous service to qualify for statutory gratuity. This does not remove any separate entitlement to unpaid wages or eligible unused leave pay.
Unpaid absence: Unpaid days are not counted towards the qualifying service period. The calculation should exclude the relevant days rather than automatically treating the employee as having broken continuous service.
Lawful deductions: Under Article 51(7), an employer may deduct legally due amounts or sums established by judgment, subject to the applicable implementing rules. An alleged loss, unsupported debt or employer estimate is not automatically sufficient.
Dismissal: Even serious misconduct must be analysed under the current legislation. Employers should not assume that dismissal under Article 44, by itself, removes accrued gratuity.
Disputed records: Payroll records, signed employment contracts, leave records and any settlement statement should be compared before agreeing to a deduction.
In practice, an employer may calculate a lower figure because of an incorrect basic salary, an unrecorded service period or a disputed absence. These are matters to verify, not automatic statutory grounds to reduce payment.
Where the parties disagree, ask for a written breakdown identifying the applicable legal basis, service dates and deductions.
Voluntary end-of-service savings scheme
Cabinet Resolution No. 96 of 2023 introduced an optional alternative savings system for participating employers.
Under the scheme, employers contribute monthly amounts for enrolled employees rather than continuing traditional gratuity accrual for the participation period.
For eligible full-time employees, the employer’s basic contribution rates are:
-
5.83% of monthly basic salary where service does not exceed five years.
-
8.33% once service exceeds five years.
Service length is measured from joining the employer, not simply the date of enrolment.
Gratuity accrued before enrolment remains separately accounted for under the resolution. Scheme contributions are not deducted from the employee’s salary.
The calculator’s traditional gratuity estimate should therefore not be treated as an accurate fund balance for someone participating in the alternative system.
Final settlement: payment deadlines and practical checks
A final settlement calculator UAE estimate should distinguish gratuity and unused annual leave from outstanding wages, notice-related entitlements and applicable deductions.
Under Article 53, the employer must settle the relevant entitlements within 14 days of the contract ending.
That is separate from the two-year employment-claim limitation under Article 54(9), amended by Federal Decree-Law No. 9 of 2024, effective 31 August 2024. Different procedural requirements can also apply to a dispute.
Keep your contract, payslips, leave balance and settlement calculation together. They give you a practical basis for reviewing discrepancies before signing a final settlement.
Dispute over your gratuity? Speak to an employment lawyer.
This article is general information, not legal advice. For advice on your situation, speak to a qualified lawyer.
Frequently asked questions
1. Is gratuity mandatory in the UAE?
Eligible foreign employees covered by the UAE federal private-sector labour law generally receive gratuity after completing at least one year of continuous service. Entitlement is calculated under Article 51. Different pension or end-of-service arrangements apply to UAE nationals and employees governed by DIFC or ADGM employment legislation.
2. Is leave salary included in gratuity?
No. Gratuity and payment for unused annual leave are separate entitlements. The calculator estimates both using the employee’s final basic monthly salary and relevant inputs. Other final settlement components, such as outstanding wages, notice-related payments and lawful deductions, must be considered separately when determining the final amount owed.
3. When should gratuity be paid?
Under Article 53, the employer must settle relevant entitlements within 14 days after the employment contract ends. Separately, Article 54(9), amended by Federal Decree-Law No. 9 of 2024, provides a two-year limitation period from termination of employment for labour claims. Employees should also follow applicable complaint and court procedures.
4. What is the maximum gratuity limit in the UAE?
Article 51 caps traditional statutory gratuity for eligible foreign employees at the equivalent of two years’ wage, calculated using the applicable basic wage. For an employee whose monthly basic salary is AED 10,000, that means a maximum of AED 240,000, even if the ordinary service-based formula produces a larger amount.
5. How can I calculate my gratuity in the UAE?
Divide your final monthly basic salary by 30 to obtain the daily basic wage. Multiply that figure by 21 for each eligible year within the first five years, then add 30 days per eligible year afterwards. Account for incomplete years, unpaid absence and the statutory cap before calculating the estimate.
6. Do I get gratuity if I resign in the UAE?
Generally, yes, provided you satisfy the applicable eligibility requirements. Under the current federal framework, resignation does not automatically reduce gratuity according to the old resignation percentages. The calculation normally follows Article 51, although the employee’s service history, applicable employment regime, deductions and any alternative savings arrangements still need to be checked.
7. How is gratuity calculated for two or three years in the UAE?
For eligible full-time employees, both periods fall within the 21-day annual gratuity tier. Two completed years produce 42 days of basic pay; three completed years produce 63 days. Multiply those days by the daily basic wage, calculated as monthly basic salary divided by 30, subject to the applicable statutory conditions.
Last updated: 08th October, 2026
