Free HR Tool
UAE Gratuity Calculator
Estimate your end-of-service benefits under UAE Labour Law in seconds. Instant, accurate and based on the latest MoHRE rules.
Basic salary only — exclude housing, transport and other allowances.
Unpaid leave is excluded from your service period under MoHRE rules.
Estimate based on UAE Federal Decree-Law No. 33 of 2021 (Articles 51–53): 21 days of basic pay per year for the first 5 years, 30 days per year thereafter, capped at 2 years' pay. Minimum 1 year of service required. For guidance only — not legal or financial advice. DIFC, ADGM and savings-scheme arrangements may differ.
The rules behind the numbers
Six rules decide your end-of-service gratuity under the UAE Labour Law. Here is what every employee and employer should know.
Minimum 1 year of service
You must complete at least one year of continuous service to qualify. Leave with less than a year served and no gratuity is due.
The 21 / 30 day formula
You earn 21 days of basic pay for each of the first 5 years, then 30 days for every year after that. Partial years are paid pro-rata.
Basic salary only
Gratuity is calculated on your last basic wage. Housing, transport and other allowances are excluded. Daily wage = basic salary divided by 30.
Capped at 2 years' pay
However long you serve, total gratuity cannot exceed the equivalent of 24 months of basic salary (Article 53).
No resignation penalty
Under Federal Decree-Law 33 of 2021, resigning employees receive the same full gratuity as terminated employees. The old two-thirds reductions no longer apply to new-law contracts.
Unpaid leave is excluded
Days of unpaid leave are deducted from your service period before calculating. Paid annual, sick and maternity leave still count in full.
Worked example
An employee with a basic salary of AED 9,000 per month leaves after exactly 7 years of service. Daily wage: 9,000 / 30 = AED 300.
Frequently asked questions
Is gratuity taxed in the UAE?
No. There is no personal income tax in the UAE, so end-of-service gratuity is paid out in full, tax-free.
Who is not covered by these rules?
UAE and GCC nationals are covered by national pension schemes instead of gratuity. Employees in DIFC are under the DEWS savings plan, and ADGM has its own regime. Employees enrolled in the voluntary Savings Scheme stop accruing traditional gratuity from the enrolment date, with earlier accruals frozen and preserved.
Can my employer deduct from my gratuity?
Only amounts legally due, such as documented debts or amounts ordered by a court judgment, may be deducted in line with the procedures set by law.
Can I lose my gratuity entirely?
Gratuity is a statutory entitlement after one year of service. It is not forfeited simply for resigning. Disputes over entitlement can be raised with MoHRE.
When should gratuity be paid?
All end-of-service entitlements should be settled within 14 days of the contract end date under the UAE Labour Law.
Based on UAE Federal Decree-Law No. 33 of 2021 (Articles 51-53) and MoHRE guidance, current as of June 2026. This page is general information, not legal advice. Confirm your specific entitlement with MoHRE or a qualified advisor.