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Calculate your end of service benefits quickly and accurately.Based on the latest UAE labor law (2025).
* This calculation is an estimate and is based on Federal Decree-Law No. 33 of 2021 and 2024/2025 updates. For official data, contact MOHRE.
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Enter your details on the left to see your gratuity calculation upon termination.
Legal Information & Law Excerpts
Article (51) - End of Service Benefits
Full-time expatriate workers who complete one year or more of continuous service are entitled to gratuity: 21 days' basic wage for each of the first five years, and 30 days' basic wage for each subsequent year. The total gratuity shall not exceed two years' wage.
Article (53) - Payment of Entitlements
The Employer shall pay the Worker all entitlements within 14 days from the date of the contract end.
How it is calculated
- 1. We determine your daily basic wage: (Monthly Basic Salary / 30 days).
- 2. For the first 5 years of service, you get 21 days of wage per year.
- 3. For any years beyond the first 5, you get 30 days of wage per year.
- 4. The sum is capped at 24 months of your basic salary.
This free calculator estimates the end-of-service gratuity that private-sector employees in the UAE are entitled to under Federal Decree-Law No. 33 of 2021. Enter your monthly basic salary and your employment start and end dates to see your gratuity, broken down year by year.
How UAE Gratuity Is Calculated
For the first 5 years of service you earn 21 days of basic wage for each completed year. The daily wage is your monthly basic salary divided by 30.
For every year beyond the first 5 years you earn 30 days of basic wage per year. The total gratuity can never exceed two years (24 months) of basic salary.
Only continuous service of at least one full year qualifies. Periods of unpaid leave are excluded from the service length used in the calculation.
What Counts as Basic Salary?
UAE gratuity is calculated on your basic salary only — not on your total monthly package.
Allowances such as housing, transport, utilities, furniture and similar add-ons are excluded from the gratuity calculation. If your contract states a basic salary of AED 6,000 inside a total package of AED 10,000, your gratuity is based on AED 6,000.
Always use the basic-salary figure from your labour contract or latest pay slip for the most accurate estimate.
Eligibility and Payment Timeline
Full-time private-sector employees generally become eligible for gratuity after completing at least one year of continuous service.
An employee who resigns is still entitled to gratuity once the one-year threshold is met under the current unlimited-contract rules.
The employer must pay all final entitlements, including gratuity, within 14 days from the date the contract ends.
UAE Gratuity Calculation Examples
Worked examples using a monthly basic salary of AED 10,000 (daily wage AED 333.33):
Alternative End-of-Service Savings Scheme
MOHRE operates a voluntary Alternative End-of-Service Benefits System. Instead of accruing a lump sum at the end of service, employers contribute monthly into approved investment funds on the employee's behalf.
Under this scheme the contributions are invested and can grow over time, and the employee receives the accumulated value when they leave. Participation is currently optional and runs alongside the traditional gratuity system.
Frequently Asked Questions
Who is eligible for gratuity in the UAE?
Private-sector employees generally become eligible after completing at least one year of continuous service, subject to UAE Labour Law and the terms of their contract.
Is UAE gratuity calculated on basic salary or total salary?
It is calculated on basic salary and generally excludes allowances such as housing, transport, utilities and furniture.
How is gratuity calculated for the first five years?
You receive 21 days of basic wage for each completed year of service in the first five years. The daily wage is your monthly basic salary divided by 30.
What happens after five years of service?
For each year beyond the first five you earn 30 days of basic wage per year, on top of the 21-day rate applied to the first five years.
When must the employer pay end-of-service benefits?
Employers must pay outstanding wages, entitlements and gratuity within 14 days from the date the contract ends.
What is the maximum gratuity in the UAE?
The total gratuity must not exceed the equivalent of two years' (24 months') basic salary.
Do I get gratuity if I resign?
Yes. Under the current unlimited-contract rules an employee who resigns is still entitled to gratuity once they have completed at least one year of continuous service.
Official Sources Used
- UAE Government Portal — End of service benefits (private sector)
- MOHRE — Alternative End-of-Service Benefits System
- UAE Legislation — Federal Decree-Law No. 33 of 2021
Last reviewed: June 2026