Free online tool
UAE Gratuity Calculator
Work out your UAE end of service benefits (EOSB) in seconds. Enter your basic monthly salary and length of service to see your gratuity under Federal Decree-Law No. 33 of 2021, the UAE Labour Law that applies to private-sector employees across Dubai, Abu Dhabi, Sharjah, and the other emirates.
Quick answer
Quick answer
UAE gratuity is based on basic salary, not allowances, under Federal Decree-Law 33 of 2021, at 21 days per year for the first 5 years, then 30 days per year. With a basic salary of AED 10,000, 3 years gives AED 21,000 and 7 years gives AED 55,000. Gratuity is capped at two years of basic salary, or AED 240,000.
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About this tool
About the UAE Gratuity Calculator
Work out your UAE end of service benefits (EOSB) in seconds. Enter your basic monthly salary and length of service to see your gratuity under Federal Decree-Law No. 33 of 2021, the UAE Labour Law that applies to private-sector employees across Dubai, Abu Dhabi, Sharjah, and the other emirates.
Detailed guide
How to get useful results from UAE Gratuity Calculator
How UAE gratuity is calculated
UAE gratuity is based on your basic salary only, not your total package. Allowances for housing, transport, and other benefits are excluded. First, your daily wage is calculated as basic monthly salary divided by 30. Then, for each year of service up to five years, you earn 21 days of that daily wage. For every year beyond five, you earn 30 days per year.
Example: with a basic salary of AED 10,000, your daily wage is AED 333.33. After 3 years, gratuity is 3 x 21 x 333.33 = AED 21,000. After 7 years, it is (5 x 21 x 333.33) + (2 x 30 x 333.33) = AED 35,000 + AED 20,000 = AED 55,000.
Who qualifies for gratuity in the UAE
Any private-sector employee who completes at least one year of continuous service qualifies. Under the current Labour Law, the same formula applies whether you resign or your employer ends your contract, and it applies to both limited and unlimited contracts. Employees with less than one year of service receive no gratuity.
Free zone employees are generally covered by their free zone's own employment rules, which usually mirror the federal formula, but check your specific free zone regulations. Domestic workers fall under a separate law with different benefit rules.
The two-year cap and payment timing
Total gratuity cannot exceed two years of basic salary, no matter how long you served. For a basic salary of AED 10,000, the maximum payout is AED 240,000. Employers must pay end of service benefits within 14 days of the last working day under the Labour Law, and any delay can be reported to MOHRE.
Gratuity is paid as a lump sum at the end of employment. It is separate from your final salary, unused annual leave payout, and any notice period compensation. Keep your labour contract and salary slips, since gratuity disputes are usually about whether allowances were wrongly counted as basic salary.
Quick guide
How to use this tool
- 01Enter your basic monthly salary in AED (excluding allowances).
- 02Enter your full years of service plus any extra months.
- 03Read your daily wage, the first-five-years portion, the beyond-five-years portion, and your total gratuity.
Capabilities
Features and supported formats
- 21 days per year for the first 5 years, 30 days per year after.
- Automatic two-year salary cap applied.
- Pro-rata calculation for partial years of service.
- Basic-salary-only calculation, matching UAE Labour Law.
- Instant results for Dubai, Abu Dhabi, and all emirates.
Supported formats
Inputs: basic monthly salary (AED), years and months of service. Output: daily wage, gratuity breakdown, capped total.
Answers
Frequently asked questions
How is gratuity calculated in the UAE?
Divide your basic monthly salary by 30 to get your daily wage. Multiply by 21 days for each year of service up to 5 years, and by 30 days for each year beyond 5. The total is capped at 2 years of basic salary. For example, AED 10,000 basic salary over 7 years gives AED 55,000.
Do I get gratuity if I resign in the UAE?
Yes, provided you completed at least one year of service. Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), resigning employees receive the same gratuity formula as terminated employees. The old rule that reduced gratuity for resignations under limited contracts no longer applies.
Is gratuity calculated on basic salary or gross salary?
On basic salary only. Housing, transport, and other allowances are excluded from the calculation. This is the most common dispute in gratuity claims, so check your labour contract to confirm which figure is registered as your basic salary.
What is the maximum gratuity I can receive in the UAE?
Two years of basic salary. For a basic salary of AED 15,000 per month, the maximum end of service payout is AED 360,000, regardless of how many decades you served.
When must my employer pay my gratuity?
Within 14 days of your last working day under UAE Labour Law. If payment is delayed, you can file a complaint with MOHRE (Ministry of Human Resources and Emiratisation) through its app, website, or call centre.
Does gratuity apply to free zone employees in Dubai?
Most free zones, including DIFC and ADGM, have their own employment regulations, but their end of service formulas closely follow the federal gratuity calculation. Check your free zone's specific rules, since DIFC uses a different qualifying scheme for some employees.