All tools / Gratuity calculator
UAE gratuity calculator
Work out your end of service benefit under the UAE Labour Law for private sector employees, with each step of the calculation shown.
How UAE gratuity is calculated
Under Federal Decree-Law No. 33 of 2021, a full-time private sector employee who completes at least one year of continuous service is entitled to an end of service gratuity based on the last basic salary:
- 21 days of basic salary for each of the first five years of service.
- 30 days of basic salary for each year after the fifth.
- Part years count in proportion to the days worked.
- The total cannot be more than two years of basic salary.
- Days of unpaid leave are not counted as service.
One day's pay is the basic monthly salary divided by 30.
Example
Basic salary AED 8,000 and 7 years of service. One day's pay is AED 266.67. The first five years give 5 × 21 × 266.67 = AED 28,000. The next two years give 2 × 30 × 266.67 = AED 16,000. The total is AED 44,000.
Worked examples
Short service: 3 years 6 months, basic AED 10,000
Long service: 12 years, basic AED 20,000
The cap: 30 years, basic AED 10,000
Special cases
- Resigning: under the 2021 Labour Law you receive the full amount after one year, whether you resign or the employer ends the contract.
- Part-time work: gratuity is worked out in proportion to the hours in your part-time contract.
- Salary changed during your service: the whole gratuity uses your last basic salary, not an average.
- Money you owe the employer: the employer can deduct amounts you legally owe, such as an unpaid loan, from your final settlement.
- Savings scheme: some employers have joined MOHRE's voluntary end-of-service savings scheme, which pays benefits into an approved investment fund instead. If yours has, your payout comes from the fund.
- UAE nationals in the private sector are usually covered by the pension scheme (GPSSA) instead of gratuity.
Common mistakes
- Using the full salary. Gratuity uses the basic salary only, unless your contract says otherwise.
- Counting unpaid leave or absence days as service. They are taken out.
- Rounding years down. Part years count in proportion, so 6 years and 4 months is not just 6 years.
- Waiting too long. The employer must pay within 14 days of the end of employment. If they do not, you can file a complaint with MOHRE.
Official sources
- Ministry of Human Resources and Emiratisation (MOHRE) labour rules, complaints, call 600 590 000
- UAE Government portal: working in the private sector plain-language guide to the Labour Law
Questions people ask
Do I get gratuity if I resign?
Under the current UAE Labour Law, yes, as long as you completed at least one year of continuous service. The old reductions for resigning early were removed in 2022.
Is gratuity paid for less than one year?
No. Employees with less than one year of continuous service are not entitled to gratuity.
Is housing allowance included?
No. Gratuity is based on the basic salary only, unless your contract says otherwise.
When must the employer pay it?
Within 14 days of the end of employment, together with other dues.
Does this apply to government or free zone staff?
Federal government employees, DIFC and ADGM employees and domestic workers follow different rules. Check your own scheme.
This calculator gives an estimate for private sector employees under the UAE Labour Law. Your contract, any pension scheme, and deductions owed to the employer can change the final amount. Rules checked October 2026.