Gratuity Calculator UAE

What is end of service gratuity in the UAE?

End of service gratuity is the lump sum a private-sector employer in the United Arab Emirates owes when an employment contract ends, provided the employee completed at least one year of continuous service. It is not a bonus the employer chooses to pay: it is a statutory entitlement under Article 51 of Federal Decree-Law No. 33 of 2021, the law that has regulated labour relations in the UAE since 2 February 2022. The gratuity rewards length of service, so it grows with every year you stay, and it is paid on top of any unused annual leave and any other end of service settlement.

The standard gratuity rules cover full-time employees in the private sector, on the mainland and in most free zones. They do not cover everyone working in the UAE. Employees in the Dubai International Financial Centre (DIFC) are under the DEWS savings scheme instead, Abu Dhabi Global Market (ADGM) has its own end of service model, domestic workers follow a separate domestic workers law, and government employees are under civil service rules. If any of those apply to you, this calculator will not give the right figure, and you should check the scheme that covers your employment instead.

Gratuity calculation in UAE: the formula

The gratuity calculation in uae formula has two tiers. First, find the daily basic wage by dividing the monthly basic wage by 30. Then multiply: 21 days of basic wage for each of the first five years of service, and 30 days of basic wage for each year after the fifth. A partial year is paid in proportion to the days worked in it, at the rate that applies to that year. Finally, check the result against the cap: total gratuity cannot exceed two years' wage. In one line, the uae gratuity calculation formula is: gratuity = (basic wage ÷ 30 × 21 × years up to 5) + (basic wage ÷ 30 × 30 × years beyond 5), with the partial year pro-rated and the total capped at 24 monthly wages. The gratuity calculation in uae labour law uses the last basic wage you were entitled to, not the wage you started on and not an average over your service.

If you are using a gratuity calculator uae formula to check an offer from your employer, the two things to verify first are the basic wage figure and the service dates. Both come from your MOHRE-registered contract, and both are where disputes usually start: allowances wrongly included in the wage, or unpaid leave wrongly counted as service. This page's calculator uses exactly the formula above, so you can compare its breakdown line by line with your employer's settlement.

Worked examples

Example 1: 7 years, basic wage AED 10,000 a month

The daily basic wage is 10,000 ÷ 30 = AED 333.33. The first five years give 5 × 21 = 105 days, worth 105 × 333.33 = AED 35,000. Years six and seven give 2 × 30 = 60 days, worth 60 × 333.33 = AED 20,000. The total gratuity is AED 35,000 + AED 20,000 = AED 55,000.00. This is the calculator's default result, so you can check it by opening the page and pressing the button.

Example 2: 7 years and 181 days, basic wage AED 12,000, total wage AED 18,000

The daily basic wage is 12,000 ÷ 30 = AED 400. The first five years give 5 × 21 × 400 = AED 42,000 and years six and seven give 2 × 30 × 400 = AED 24,000. The partial year is 181 days out of 365, at the 30-day rate that applies after five years: 181 ÷ 365 × 30 × 400 = AED 5,950.68. The total is AED 42,000 + AED 24,000 + AED 5,950.68 = AED 71,950.68. The cap is 24 × 18,000 = AED 432,000, so it is not reached. In the calculator, 7 years and 181 days is entered as 7 years, 6 months and 1 day, which is the same number of days.

Example 3: 2 years, basic wage AED 6,000 a month

The daily basic wage is 6,000 ÷ 30 = AED 200. Two years in the first tier give 2 × 21 = 42 days, worth 42 × 200 = AED 8,400.00. Note what happens if this worker's total package is AED 12,000: the gratuity is still AED 8,400, because the allowances never enter the calculation.

Example 4: the cap, 40 years, basic wage AED 10,000 a month

Without a cap, the days would be 105 for the first five years plus 35 × 30 = 1,050 for the years after, a total of 1,155 days × AED 333.33 = AED 385,000. The cap of two years' wage is 24 × 10,000 = AED 240,000, so the gratuity is AED 240,000.00. The cap is the reason very long service stops adding to the entitlement.

Example 5: under one year, 8 months, basic wage AED 10,000 a month

The result is AED 0.00. Article 51 requires at least one full year of continuous service, so even eight months of work gives no gratuity under the standard rules. The moment the first year is complete, the entitlement starts, and any further partial year is paid in proportion.

Basic wage or total salary?

This is the most common mistake in UAE gratuity, and the most expensive one. Gratuity is calculated on the basic wage only: the fixed salary figure stated in your contract, excluding housing allowance, transport allowance, telephone and food allowances, bonuses, commissions, overtime and any other variable pay. If your total package is AED 18,000 but your basic wage is AED 12,000, your gratuity is calculated on AED 12,000, not on AED 18,000. The only place total salary matters is the cap, which is measured on total monthly wage: that is why this calculator has a separate optional field for total wage, used only to work out the cap. If you leave it blank, the cap is worked out on the basic wage, which gives a lower, more conservative cap.

Which wage counts as the basic wage? The last basic wage you were entitled to, not the wage from your first year and not an average. A promotion or a raise late in your service therefore raises the whole gratuity, because the new basic wage is applied to every year of service. Check the figure against your MOHRE-registered contract and your last payslip: if they disagree, the contract figure is the one that decides a dispute.

Resignation, termination and dismissal

Under the old labour law, resigning early could reduce gratuity to a fraction of the full amount. That no longer applies. Since Federal Decree-Law No. 33 of 2021 took effect on 2 February 2022, resignation no longer reduces the entitlement: resigning and being terminated give exactly the same gratuity, provided the one-year minimum is met. The calculator therefore does not ask how the employment ended, because under the current law it makes no difference to the standard calculation.

There are two exceptions worth knowing. First, dismissal for gross misconduct under Article 44 can mean losing the gratuity altogether: the law lists cases such as assuming a false identity, causing substantial material loss, revealing trade secrets, or being intoxicated at work. Second, part-time and flexible workers are covered by Article 52, which gives gratuity in proportion to their working hours compared with a full-time worker. The calculator on this page covers the standard full-time case; part-time workers should treat the result as a starting point and pro-rate it by their contractual hours.

Gratuity calculator UAE 2025 and 2024

The same formula applies whether you are checking a gratuity calculator uae 2025 or a gratuity calculator uae 2024. The 21-day and 30-day tiers, the one-year minimum, the pro-rating of partial years and the two-year cap all come from Federal Decree-Law No. 33 of 2021, which took effect on 2 February 2022 and has not changed the gratuity formula since. MOHRE's own guidance, most recently restated in October 2026, explains the same existing requirements rather than announcing any change, so a settlement calculated for 2024 or 2025 uses exactly the rules on this page.

MOHRE: payment deadline and disputes

Once the contract ends, the employer must pay all end of service entitlements, including gratuity, within 14 days, under Article 53 of the same law. If the payment does not arrive, or the figure looks wrong, the route is a complaint through MOHRE: the gratuity calculator uae mohre route is the MOHRE app or website, where the claim is filed against the employer. Keep your contract, your last payslips and any settlement document your employer gave you, because MOHRE decides on the basic wage and the service dates in the registered contract. Unresolved cases can be referred to the Labour Court, but most disputes are settled once the correct basic wage and the correct service period are put on the table.

Special cases

Unpaid leave is the special case that most often surprises people: days of unpaid absence are excluded from the service period, so they push the gratuity down, while paid annual leave, paid sick leave and paid maternity leave still count. The calculator has a field for unpaid leave days for exactly this reason. A second special case is the voluntary alternative end-of-service savings scheme, which employers have been able to opt into since late 2023: if your employer joined that scheme, your benefit is measured from the scheme statement rather than from the standard Article 51 formula, so this calculator does not apply. And a third is a contract that states a gratuity more generous than the law: the law sets a floor, not a ceiling on what an employer may promise, so a contractual promise above the statutory figure stands, and the calculator result is then the minimum you are owed, not the full amount.

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