How UAE gratuity is calculated
Gratuity is a lump sum your employer pays when your job ends. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021) it works like this:
- 21 days of basic salary for each of your first five years of service.
- 30 days of basic salary for each year after that.
- You need at least one year of continuous service. After that, part years count proportionally.
- The total can't be more than two years' wage.
Your daily basic salary is your monthly basic divided by 30.
Worked example
Basic salary AED 8,000 a month, 7 years of service.
What your final settlement includes
Gratuity is only one part of what you're owed when you leave. Your final settlement usually adds:
- Unused annual leave, paid at your daily basic salary for each day you didn't take.
- Unpaid salary up to your last working day.
- Any other dues in your contract, such as a flight ticket allowance.
Your employer must pay everything within 14 days of your contract ending. Ask for a written breakdown before you sign any "all dues received" clearance.
Who this calculator is for
It follows the federal Labour Law for private-sector employees on the mainland and in most free zones. These groups follow different rules, so their results would differ:
- Government and public-sector employees
- Domestic workers, who are covered by a separate law
- Employees in the DIFC and ADGM financial free zones, which have their own employment rules
Common questions
Do I get gratuity if I resign?
Yes. An employer can't withhold your gratuity because you resigned. You still need at least one year of continuous service.
Is gratuity based on basic or total salary?
Basic salary only, using your last basic before you leave. Allowances such as housing and transport don't count. Check your contract or WPS payslip for your basic figure.
What if I worked less than a year?
No gratuity is due for less than one year of continuous service. You're still owed unpaid salary and any unused leave.
Is there a maximum gratuity?
Yes. Total gratuity can't be more than two years' wage. The calculator applies this cap automatically.
Can my employer make deductions?
Only for amounts you legally owe, such as a company loan or an overpayment, or under a court judgment. Ask for each deduction in writing.
How soon must I be paid?
Within 14 days of your contract ending. If you're not paid, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
Sources
- UAE Government portal: End of service benefits for workers in the private sector
- Gulf News: UAE gratuity guide (updated 31 Oct 2026)
Related calculators
This calculator gives an estimate for guidance only. It is not legal advice. For your exact entitlement, check your contract, use the MOHRE service, or speak to a legal adviser.