UAE gratuity calculator: end-of-service benefits
UAE gratuity is 21 days' basic salary for each of the first five years of service and 30 days' basic salary for each year after that, once you have completed one year. The daily rate is basic salary ÷ 30 and the total is capped at two years' basic salary. On a basic salary of AED 10,000, five years' service gives AED 35,000.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
Enter basic salary only, without housing, transport or other allowances.
Estimated end-of-service gratuity
AED 35,000.00
- Service
- 5.00 years (1826 days)
- Daily wage (basic ÷ 30)
- AED 333.33
- First 5 years (105 days)
- AED 35,000.00
Results are estimates for general information, not tailored advice.
Gratuity on a basic salary of AED 10,000
Gratuity by years of service, at a daily wage of AED 333.33.
| Years of service | Days of basic salary | Gratuity |
|---|---|---|
| 1 | 21 | AED 7,000.00 |
| 2 | 42 | AED 14,000.00 |
| 3 | 63 | AED 21,000.00 |
| 5 | 105 | AED 35,000.00 |
| 7 | 165 | AED 55,000.00 |
| 10 | 255 | AED 85,000.00 |
| 15 | 405 | AED 135,000.00 |
| 20 | 555 | AED 185,000.00 |
| 25 | 705 | AED 235,000.00 |
| 30 | 720 (cap) | AED 240,000.00 |
Gratuity cannot exceed two years' basic salary (720 days), a cap reached after 25.5 years of service.
How UAE gratuity is calculated
Article 51 of Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) sets the end-of-service gratuity for private-sector employees on the mainland and in most free zones. It is based on your last basic salary only; housing, transport and other allowances are not included.
- Daily wage = monthly basic salary ÷ 30.
- Years 1 to 5: 21 days' wage for each year.
- After 5 years: 30 days' wage for each further year.
- Part years count pro rata once you have completed one year of continuous service.
- Days of unpaid absence are not counted as service.
- The total cannot exceed two years' basic salary.
Does resigning reduce gratuity?
No. Under the 2021 Labour Law, an employee who has completed at least one year of continuous service receives the full gratuity whether they resign or the employer ends the contract; the old rule that cut gratuity on resignation no longer applies. The employer may deduct amounts the employee owes, and must pay all end-of-service dues within 14 days of the contract ending.
Who this calculator does not cover
- UAE and GCC nationals, who are covered by pension schemes instead of gratuity.
- Employees in DIFC, which runs its own DEWS savings plan, and ADGM, which has its own employment regulations.
- Periods covered by the voluntary alternative end-of-service savings scheme (Cabinet Resolution No. 96 of 2023), if your employer has joined it.
- Part-time workers, whose gratuity is worked out on the hours actually worked.
For employers
Gratuity builds up every month an employee works, so it should sit in your accounts as an end-of-service provision rather than surprise you at exit. Our payroll services run WPS payroll and calculate gratuity, leave salary and final settlements, and our bookkeeping team keeps the provision up to date.
Frequently asked questions
Is gratuity calculated on basic or gross salary?
On basic salary only. Housing, transport and other allowances are excluded, so check your contract or payslip for the basic figure.
Do I get gratuity if I resign?
Yes. Under the 2021 Labour Law you receive the full gratuity after at least one year of continuous service, whether you resign or your employer ends the contract.
Do I get gratuity if I worked less than one year?
No. Gratuity is due only after one year of continuous service. After that, part years count pro rata.
How is gratuity for 5 years calculated?
Five years at 21 days a year is 105 days of basic salary. On AED 10,000 basic, the daily wage is AED 333.33, so the gratuity is AED 35,000.
When must the employer pay gratuity?
All end-of-service dues, including gratuity, must be paid within 14 days of the employment ending.
Is gratuity the same in free zones?
Most free zones, including DMCC, JAFZA, IFZA and KEZAD, follow the federal Labour Law, so the same formula applies. DIFC and ADGM have their own employment rules, so check your contract there.
Payroll and WPS services
Employers: we run WPS payroll and calculate gratuity, leave salary and final settlements correctly, every time.