Gratuity Calculator UAE 2026: Calculate Your End-of-Service Benefit
🔒 Your data is not stored, and the calculator is free to use. This tool provides an estimate based on Article 51 of UAE Federal Decree-Law No. 33 of 2021 and current UAE Government guidance for qualifying full-time private-sector foreign workers. DIFC, ADGM, domestic workers, UAE nationals and employees covered by an alternative end-of-service scheme may follow different rules. For an official settlement figure, check with your employer or MOHRE.
Use this Gratuity Calculator UAE to estimate your end-of-service gratuity for qualifying full-time private-sector employment. Enter your last basic salary, joining date and last working day to estimate your benefit under Article 51 of Federal Decree-Law No. 33 of 2021. The standard formula gives 21 days of basic wage for each year of the first five years and 30 days for each additional year. After one year of continuous service, qualifying parts of a year are calculated proportionately. The total gratuity is capped at two years' wage.
The result is an estimate, not an official MOHRE settlement figure. The standard federal calculation may not apply to UAE nationals, DIFC or ADGM employees, domestic workers, or employees covered by an alternative end-of-service scheme.
Gratuity Calculator UAE: How to Calculate Your End-of-Service Gratuity
Using the calculator is straightforward. Enter the details below and the calculator will estimate your gratuity.
- 1Enter your basic monthly salary in AED, excluding all allowances
- 2Choose your contract type
- 3Enter your joining date and your last working day
- 4Select whether you resigned or were terminated
- 5Click Calculate My Gratuity to see your full breakdown
The calculator uses your basic salary and service period to apply the gratuity formula and check the result against the two-year maximum.
UAE Gratuity Calculation Formula 2026
For qualifying full-time private-sector foreign workers, the standard gratuity formula is based on the length of continuous service.
| Years of Continuous Service | Gratuity Entitlement |
|---|---|
| Less than 1 year | No gratuity |
| 1 to 5 years | 21 days of basic salary for each year |
| More than 5 years | 21 days per year for the first 5 years, then 30 days per year after that |
| Any length of service | Total capped at 2 years' basic salary |
For this calculator, the monthly basic salary is divided by 30 to convert it into a daily rate before the gratuity days are applied.
How Does the Calculator Work Out the Daily Rate?
The calculator converts your monthly basic salary into a daily rate by dividing it by 30. It then applies the 21-day or 30-day gratuity rate based on your years of service. This is the calculation method used by this tool, so you can see exactly how the estimate is produced.
Why Do Different Calculators Give Different Answers?
Different calculators can give different results because they may use different salary figures, service periods or calculation methods. The most important thing to check is whether the calculator uses your basic salary, how it treats unpaid absence, and which gratuity rules it applies. Older websites may also still show the resignation rules from the previous UAE Labour Law.
Worked Example
Gratuity Calculation Example
Here is a simple example using AED 8,000 as the basic salary and 7 years of service.
Step 1 – Daily Wage
AED 8,000 divided by 30 equals AED 266.67.
Step 2 – First 5 Years
21 days times 5 years equals 105 days of pay.
Step 3 – Remaining 2 Years
30 days times 2 years equals 60 days of pay.
Step 4 – Total Gratuity Days
165 days.
Final Gratuity
165 times AED 266.67 equals AED 44,000.
Estimated gratuity: AED 44,000. Any lawful deductions that apply to your employment may affect the final amount paid by your employer.
What Salary Is Used for UAE Gratuity?
UAE gratuity is based on your basic wage, not your total monthly package. Getting this figure right is therefore important when using the calculator.
Where to Find Your Basic Salary
Your basic salary is usually shown separately from housing, transport and other allowances in your employment contract. If you cannot find your contract, ask your HR or payroll team to confirm the basic wage recorded for your employment.
Basic Salary vs Gross Salary
Your gross or total salary may include your basic wage plus housing, transport and other allowances. For the standard gratuity calculation covered by this page, the basic wage is the figure that matters. Enter your basic monthly salary in the calculator, not your total package.
Who Is Eligible for Gratuity Calculation in the UAE?
For the standard federal gratuity calculation, you generally need at least one year of continuous service.
- 1You must have completed at least one full year of continuous service
- 2Your service is calculated from your joining date to your last working day
- 3Periods of unpaid absence are not included in the service period used for gratuity.
- 4The gratuity calculation is not reduced simply because you resigned; the circumstances of termination can still matter in specific cases.
If you have not completed one year of continuous service, the standard gratuity is not payable under Article 51.
Your employment details, including your basic salary and service dates, are important when estimating your end-of-service benefit. If you need to check or understand your UAE employment card details, see our UAE Labour Card guide.
Does Resignation or Termination Change the Amount?
Under the current UAE Labour Law, resigning does not bring back the old one-third or two-thirds gratuity reductions. For the same qualifying service period, the standard gratuity calculation is based on the same 21-day/30-day formula. Specific dismissal circumstances can require separate legal review.
Resignation vs Termination: What Changed Under the New Law
If you find an older UAE gratuity article saying that resigning after one to three years gives only one-third of the gratuity, or that three to five years gives two-thirds, be careful. Those rules came from the previous labour-law framework.
Under the current Federal Decree-Law No. 33 of 2021, the standard gratuity formula is based on the worker's qualifying service period and does not apply the old resignation reductions.
Dismissal without notice is a separate issue. Article 44 sets out circumstances in which an employer may dismiss a worker without notice. Article 44 itself does not say that dismissal without notice automatically removes the worker's gratuity. The Labour Law also separately provides for disciplinary dismissal while preserving the worker's end-of-service gratuity. If your case involves misconduct or a disputed dismissal, check the specific circumstances with MOHRE or a qualified UAE employment lawyer.
Old Law vs New Law: A Quick Comparison
Older UAE gratuity articles may still show the previous resignation rules. This table shows the main difference between the old and current framework. If you are comparing older limited and unlimited contracts with the current system, see our guide to limited vs unlimited contracts in the UAE.
| Situation | Old Law (Federal Law No. 8 of 1980) | Current Law (Federal Decree-Law No. 33 of 2021) |
|---|---|---|
| Resigning after 1 to 3 years | One third of the calculated gratuity | No old-law resignation reduction |
| Resigning after 3 to 5 years | Two thirds of the calculated gratuity | No old-law resignation reduction |
| Contract types | Limited and unlimited contracts were used under the previous framework. | Employment contracts under the current law are fixed-term. |
If you see the one-third or two-thirds resignation rule on an older UAE gratuity website, check the date and law it is based on. Those reductions belonged to the previous labour-law framework.
Gratuity vs Final Settlement in the UAE
Gratuity is only one part of a final settlement when employment ends. Depending on your situation, your final payment may also include unpaid wages, eligible unused leave compensation, notice-related amounts and other amounts due under your employment contract or UAE law. If you also want to estimate your annual leave entitlement, see our UAE annual leave calculator.
This calculator estimates gratuity only. It does not calculate your complete final settlement.
UAE Gratuity Maximum: The Two-Year Cap
Under Article 51, the total end-of-service gratuity for a qualifying foreign worker cannot exceed two years' wage.
Maximum Gratuity Example
For example, if your basic salary is AED 5,000, your maximum possible gratuity is calculated using the legal cap of two years' basic salary.
Worked Example
AED 5,000 × 24 months = AED 120,000
Maximum Gratuity Payable
AED 120,000Even if the tiered formula produces a higher number on paper, the payout stops at this ceiling.
How Are Partial Years of Service Calculated?
Once you have completed one year of continuous service, qualifying parts of an additional year are calculated proportionately. This means you do not need to complete another full year before the extra months can be reflected in the calculation.
Example: If your basic salary is AED 8,000 and your qualifying service is 2 years and 6 months, the calculator first converts AED 8,000 to a daily rate of AED 266.67. At the 21-day rate, the estimate is:
AED 266.67 × 21 × 2.5 = AED 14,000
The exact result shown by the calculator may vary slightly because of rounding.
What If My Basic Salary Changed?
UAE gratuity for a qualifying full-time foreign worker is calculated using the last basic wage. If your basic salary changed during your employment, the calculation does not simply average all of your previous basic salaries.
Check the basic salary shown for your final period of employment before using the calculator. If the amount in your employment records is different from the figure on your payslip or contract, ask your HR or payroll team to confirm which basic wage applies.
Who Should Not Rely on This Calculator
This calculator is designed for general full-time private-sector foreign workers covered by the federal UAE Labour Law. A different calculation or employment framework may apply if:
- ✓You work in DIFC or ADGM, where separate employment rules apply.
- ✓Your employer has enrolled you in the UAE Alternative End-of-Service Savings Scheme.
- ✓You are a UAE national covered by the applicable pension or social-security system rather than the standard foreign-worker gratuity formula.
- ✓Your case involves a disputed dismissal, misconduct allegations, or another employment issue that needs individual legal review.
- ✓You are a domestic worker, because domestic workers are covered by a separate UAE employment law.
Gratuity Calculation in Free Zones, DIFC, ADGM and the Savings Scheme
Many UAE free-zone employees are covered by the federal labour framework, but free-zone arrangements can differ. DIFC and ADGM have their own employment regulations, so employees working in those jurisdictions should not automatically use the standard federal calculation.
DIFC replaced the traditional end-of-service gratuity with an employee workplace savings scheme.
ADGM has its own gratuity rules. Under the ADGM Employment Regulations 2024, gratuity is calculated at 21 days of basic wage for each year of the first five years and 30 days for each additional year. ADGM also uses a daily basic wage calculated by dividing the annual basic wage by 365.
The UAE also has a voluntary alternative end-of-service savings scheme for participating private-sector and free-zone employers. If your employer uses this scheme, check with HR before relying on the traditional gratuity calculation.
UAE Gratuity Calculation for Dubai, Abu Dhabi, Sharjah and All Emirates
The standard federal gratuity formula applies across the UAE where the federal Labour Law applies. So a qualifying employee in Dubai and a qualifying employee in Abu Dhabi would use the same federal formula for the same basic salary and qualifying service period.
The main exceptions are employment arrangements governed by a different framework, such as DIFC or ADGM, or an alternative end-of-service scheme.
When Must UAE Gratuity Be Paid?
Under Article 53 of the UAE Labour Law, an employer must pay the worker's wages and other employment entitlements within 14 days from the date the employment contract ends. This includes amounts due at the end of employment, subject to the applicable rules and any lawful deductions.
If your gratuity has not been paid within the applicable period, start by asking your employer or HR department for a written settlement statement. If the issue is not resolved, you can follow the applicable MOHRE labour-dispute process.
How Long Do You Have to Claim Unpaid UAE Gratuity?
Article 54(9) of the UAE Labour Law was amended in 2024. For rights arising under the Labour Law, litigation may not be considered after two years from the date of termination of the employment relationship. This is different from the earlier rule, which used the date when the claimed right became due.
If your employer has not paid your gratuity or another employment entitlement, it is better to raise the issue promptly and follow the applicable MOHRE dispute procedure rather than wait until the limitation period becomes an issue.
Common UAE Gratuity Calculation Mistakes
The most common mistakes are usually simple ones:
- 01Using gross salary Entering your total salary instead of your basic wage can give you the wrong gratuity estimate.
- 02Entering the wrong dates Your joining date and last working day affect the length of service used in the calculation.
- 03Ignoring unpaid absence Periods of unpaid absence are not included in the service period used for gratuity.
- 04Using old resignation rules Older articles may still show the one-third or two-thirds reductions that belonged to the previous Labour Law.
- 05Using the federal formula for DIFC or ADGM DIFC and ADGM have their own employment rules, so the standard federal calculator may not apply.
- 06Confusing gratuity with final settlement Your final settlement can include other amounts in addition to gratuity, depending on your situation.
- Content reviewed: September 2026
- Official sources checked: UAE Government – End-of-Service Benefits, Federal Decree-Law No. 33 of 2021, Cabinet Resolution No. 1 of 2022, and MOHRE Savings Scheme guidance.
- What this page covers: The calculator and information on this page are intended for general full-time private-sector foreign workers covered by the UAE federal Labour Law. DIFC, ADGM, domestic workers, UAE nationals and employees covered by an alternative end-of-service scheme may follow different rules.
- This calculator provides an estimate for general information. It is not an official MOHRE settlement calculation or legal advice. For a disputed or unusual employment situation, confirm the applicable rules with MOHRE or a qualified UAE employment lawyer.