UAE Labour Law · Free
UAE Gratuity Calculator
Estimate your end-of-service benefit under the UAE Labour Law (Federal Decree-Law No. 33 of 2021) — free, instant, no sign-up.
Quick Answer
How is end-of-service gratuity calculated in the UAE?
MakeMyCV's free UAE gratuity calculator estimates your end-of-service benefit under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). For private-sector staff, gratuity is 21 days of basic salary for each of the first five years and 30 days for each year after, based on basic pay only, capped at two years' salary. Enter your basic salary and service length for an instant estimate — no sign-up.
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Advanced: unpaid leave, part-time
Enter your basic salary and service dates to see an estimated end-of-service gratuity.
Estimate only, for the standard private-sector case under Federal Decree-Law No. 33 of 2021. Gratuity uses your last basic salary applied to all years (Art. 51) — employers can’t pro-rate earlier years at an older, lower basic. Domestic-worker contracts differ. Confirm your exact figure with MOHRE or your employer.
Your full final settlement is more than this one number
- End-of-service gratuity — 21/30 days of basic pay per year (this calculator)
- Unused annual-leave encashment — cannot be forfeited — no minimum service (Art. 29)
- Notice pay (if applicable) — on the full wage, either direction (Art. 43)
- Plus — any unpaid salary days, and a one-way repatriation ticket if you’re leaving the UAE and not joining another employer here.
Everything above is due within 14 days of your last working day (Article 53). Paid less than the law says? Filing a MOHRE complaint is free — call 600 590 000 or use the MOHRE app.
How UAE end-of-service gratuity is calculated
For a full-time private-sector employee, UAE end-of-service gratuity is based on your basic salary — the figure in your contract, before housing, transport and other allowances. Your daily wage is that basic monthly salary divided by 30.
You earn 21 days of basic salary for each of your first five years of service, and 30 days of basic salary for every year beyond five. You must complete at least one full year to be entitled to anything, and the total is capped at two years’ basic salary. Partial years are pro-rated.
Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), gratuity is worked out the same way whether you resign or your employer ends the contract, once you have passed one year of service — the older reductions for resigning were removed.
Worked examples
Under 1 year — 8 months, AED 7,000 basic
Below 12 months of service, no gratuity is due.
= AED 0
3 years, AED 6,000 basic
Daily wage = 6,000 ÷ 30 = AED 200. 21 days × 3 years = 63 days. 63 × 200.
= AED 12,600
8 years, AED 8,000 basic
Daily wage = 8,000 ÷ 30 = AED 266.67. First 5 years: 21 × 5 = 105 days. Next 3 years: 30 × 3 = 90 days. 195 × 266.67.
= AED 52,000
Figures are illustrative estimates for the standard case. Free-zone schemes (e.g. DIFC’s DEWS), domestic workers and Article 44 dismissals can differ — confirm your exact entitlement with MOHRE.
UAE gratuity — questions, answered
- Is gratuity based on basic salary or total salary?
- Gratuity is calculated on your basic salary only. Allowances such as housing, transport, and other benefits are excluded, so the figure is usually lower than one based on your gross pay. Always use the basic pay stated in your contract.
- How many days of pay is UAE gratuity per year?
- For the standard private-sector case, you earn 21 days of basic salary for each of your first five years of service, and 30 days of basic salary for each year beyond five. Partial years are pro-rated.
- Do I still get gratuity if I resign?
- Yes. After completing one year of continuous service you are entitled to gratuity whether you resign or your employer ends the contract. Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), resignation is calculated with the same 21/30-day formula — the old reductions for resigning were removed. Dismissal for gross misconduct under Article 44 can affect entitlement, so confirm your case with MOHRE.
- What if I worked less than one year?
- No gratuity is due below 12 months of continuous service. Once you pass one full year, you become entitled, and any additional months are counted pro-rata toward the 21-days-per-year calculation.
- Is there a maximum gratuity amount?
- Yes. Total end-of-service gratuity cannot exceed the equivalent of two years' basic salary, regardless of how long you have worked. Our calculator applies this cap automatically and shows you when it takes effect.
- Do DIFC and free-zone employees use the same rules?
- Not always. DIFC replaced traditional gratuity with the DEWS scheme, a funded workplace savings plan, and some other free zones (such as ADGM) have their own arrangements. If you work in a financial free zone, check whether DEWS or a similar scheme applies to you rather than the standard gratuity formula.
- Is this calculator free and is the figure official?
- The calculator is completely free with no sign-up. The result is an estimate to help you plan — it is not an official statement of entitlement. For your exact figure, confirm with MOHRE or your employer, as individual contracts and special cases can vary.