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What is end of service gratuity in the UAE?
End of service gratuity is the lump sum owed when a private-sector employment contract ends, provided the employee completed at least one year of continuous service. It is set by Article 51 of Federal Decree-Law No. 33 of 2021: 21 days of basic wage for each of the first five years, 30 days for each year after that, a partial year paid in proportion, and a total cap of two years' wage. Only the basic wage counts, so housing, transport, bonuses and commissions are left out, and unpaid absence days do not count towards the service period. The employer must pay within 14 days of the contract ending.
The standard rules cover full-time private-sector employees on the mainland and in most free zones. DIFC employees are under the DEWS savings scheme, ADGM has its own model, domestic workers follow a separate law and government employees follow civil service rules, so those cases need their own scheme rather than this calculator.
Why a calculator in English?
The UAE workforce is largely made up of expatriates, and they search for this topic in English, with phrases like gratuity calculator uae and end of service gratuity calculator uae. This section is therefore written in English, while keeping the legal terms exactly as they appear in the law: basic wage, continuous service and the Article 51 tiers. That way the result can be compared directly with a MOHRE-registered contract and with an employer's settlement, without anything being lost in translation.
Frequently asked questions
What is end of service gratuity in the UAE?
End of service gratuity is the lump sum a private-sector employer owes when a contract ends, provided the employee completed at least one year of continuous service. It is calculated under Article 51 of Federal Decree-Law No. 33 of 2021, at 21 days of basic wage for each of the first five years and 30 days for each year after that, capped at two years' wage.
How is UAE gratuity calculated?
Divide the monthly basic wage by 30 to get the daily basic wage, multiply by 21 days for each of the first five years and by 30 days for each year after that, pro-rate any partial year, and apply the two-year cap. Only the basic wage counts; allowances are excluded.
What do I need to enter in the calculator?
Your last monthly basic wage, your years, months and days of service, any unpaid leave days, and optionally your total monthly wage including allowances, which is used only for the two-year cap.
Is the UAE gratuity calculator different from the Saudi one?
Yes. The UAE and Saudi Arabia have different labour laws: the UAE uses Article 51 of Federal Decree-Law No. 33 of 2021 with 21 and 30 day tiers and a two-year cap, while Saudi Arabia uses Articles 84 and 85 of its Labour Law with different tiers and resignation fractions. Use each country's own calculator.