UAE Gratuity Calculator
Under UAE Labour Law, an employee who completes at least one year of continuous service is entitled to end-of-service gratuity: 21 days of basic salary for each of the first five years, and 30 days of basic salary for each year after that. Total gratuity cannot exceed two years' basic salary.
- Daily wage (basic ÷ 30)
- AED 333.33
- First 5 years — 21 days/year
- 105.0 days
- Beyond 5 years — 30 days/year
- 30.0 days
- Total gratuity days
- 135.0 days
- Gratuity payable
- AED 45,000.00
Based on Federal Decree-Law No. 33 of 2021 for employees under UAE mainland labour law. DIFC and ADGM employees, and those enrolled in an alternative end-of-service savings scheme, follow different rules. This is an estimate, not legal advice.
How this calculator works
- 1
Enter your basic monthly salary. Gratuity is calculated on basic pay only — housing, transport and other allowances are excluded.
- 2
Enter your total length of continuous service in years and months. You need at least one full year to qualify for any gratuity.
- 3
The first five years accrue 21 days of basic pay per year; every year beyond five accrues 30 days. Partial years are prorated.
- 4
The daily wage is basic salary divided by 30. The result is capped at two years of basic salary, as required by law.
What employers need to provision for
End-of-service gratuity is an accruing liability, not a cost that appears only when someone leaves. Under IAS 19 it should be provided for each month as the entitlement builds, so that your balance sheet reflects the real obligation. Businesses that only recognise gratuity on departure tend to be caught out when several long-serving staff leave in the same year.
Unpaid leave, absence without pay and periods of suspension generally do not count toward continuous service. If your payroll includes a mix of contract types or DIFC/ADGM employees, the rules differ and the figure above may not apply. Our UAE payroll services and the payroll and WPS guide cover accrual and compliance in detail.
Frequently asked questions
- How is gratuity calculated in the UAE?
- Gratuity is 21 days of basic salary for each of the first five years of service and 30 days for each subsequent year. The daily wage is your basic monthly salary divided by 30. For example, an employee on AED 10,000 basic with six years of service receives (5 × 21 + 1 × 30) = 135 days, which is AED 45,000.
- Is gratuity calculated on basic salary or total salary?
- On basic salary only. Housing, transport, mobile and other allowances are excluded from the gratuity calculation, which is why the basic component of a UAE salary package matters at the end of service.
- Do I get gratuity if I resign?
- Yes. Under Federal Decree-Law No. 33 of 2021, employees on unlimited contracts who resign receive full gratuity after completing one year of service. The older rules that reduced gratuity for resignation before five years no longer apply.
- Is there a maximum gratuity payment in the UAE?
- Yes. Total end-of-service gratuity cannot exceed two years' basic salary, no matter how long the period of service. This calculator applies that cap automatically.
- What if I have worked less than one year?
- No gratuity is payable if continuous service is under one year. Once you pass the one-year mark, entitlement accrues, and partial years beyond that are prorated based on days worked.
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