UAE Gratuity Calculator
Estimate your UAE end-of-service benefit instantly. Based on current UAE Labour Law (Federal Decree-Law No. 33 of 2021). Transparent formula. Year-by-year breakdown.
UAE Gratuity Calculator
Free · Instant · Based on Federal Decree-Law No. 33 of 2021
How UAE Gratuity Is Calculated
UAE end-of-service gratuity is governed by Federal Decree-Law No. 33 of 2021. Here is the general framework for private-sector workers.
The Standard Formula
Gratuity is calculated using your last basic monthly salary — not your total salary or gross pay. Allowances such as housing and transport are excluded.
- Calculate your daily wage
Monthly basic salary ÷ 30 = Daily wage - First 5 years of service
Daily wage × 21 days × years served (up to 5) - Service beyond 5 years
Daily wage × 30 days × additional years - Add partial years proportionally
Partial year = daily wage × rate × (days/365) - Apply the maximum cap
Total cannot exceed 2 years' basic wage
Monthly basic salary: AED 10,000
Service: 7 complete years
Below the 2-year cap (AED 240,000). Result is full calculated amount.
UAE Gratuity Eligibility
You must have completed at least one full year of continuous eligible service to qualify for the standard gratuity calculation under the general framework.
Gratuity uses your last basic monthly salary only — not gross salary, housing allowance, or transport allowance.
Under the current UAE Labour Law, employees who resign and meet the minimum service threshold are generally entitled to gratuity. Learn more →
This calculator covers the general UAE private-sector framework. Free-zone workers, domestic workers, and other categories may have separate rules.
The rate increases from 21 days/year to 30 days/year once you complete 5 years of service. Partial years are calculated proportionally.
Total gratuity cannot exceed the equivalent of 2 years' basic wageunder the standard framework, regardless of total service length.
Gratuity Rate by Year of Service
The rate changes after 5 complete years. Here is how gratuity accumulates per year for an employee earning AED 10,000 basic salary per month (daily wage = AED 333.33):
| Year | Rate | Gratuity (AED 10,000/mo salary) | Running Total |
|---|---|---|---|
| Year 1 | 21 days/yr | AED 7,000 | AED 7,000 |
| Year 2 | 21 days/yr | AED 7,000 | AED 14,000 |
| Year 3 | 21 days/yr | AED 7,000 | AED 21,000 |
| Year 4 | 21 days/yr | AED 7,000 | AED 28,000 |
| Year 5 | 21 days/yr | AED 7,000 | AED 35,000 |
| Year 6 | 30 days/yr | AED 10,000 | AED 45,000 |
| Year 7 | 30 days/yr | AED 10,000 | AED 55,000 |
| Year 8 | 30 days/yr | AED 10,000 | AED 65,000 |
| Cap (2 years' wage) | AED 240,000 max | ||
Example uses AED 10,000 basic salary. Daily wage = 10,000 ÷ 30 = AED 333.33. Per-year amount = daily wage × rate. Partial years calculated proportionally.
UAE Gratuity Calculators
Latest Legal Updates
Recent changes to UAE labour law and gratuity rules, with official sources.
The current UAE private-sector gratuity framework continues to operate under Federal Decree-Law No. 33 of 2021 and its implementing resolutions. The standard calculation remains: 21 days' basic wage per year for the first 5 years, and 30 days' basic wage per year for service beyond 5 years, subject to the applicable statutory maximum. Workers and employers should consult MOHRE for guidance on their specific circumstances.
- Standard gratuity calculation (21 days / 30 days framework)
- Basic wage definition
- Eligibility thresholds
The UAE Cabinet approved a voluntary End-of-Service Savings Scheme as an alternative to traditional end-of-service gratuity for eligible private-sector workers. Under this scheme, employers contribute to investment funds on behalf of enrolled employees. This scheme is separate from and operates independently of the standard gratuity framework. Employees enrolled in the scheme have their end-of-service benefits handled through the scheme rather than the traditional calculation.
- Optional End-of-Service Savings Scheme
- Employer contribution obligations for enrolled employees
The new UAE Labour Law (Federal Decree-Law No. 33 of 2021) came into force, replacing Federal Law No. 8 of 1980. The new law introduced significant changes including the elimination of the limited/unlimited contract distinction for private-sector workers under the standard framework, new work models, and updated end-of-service benefit rules. The standard gratuity calculation framework (21 days for the first 5 years, 30 days thereafter) remains as the general benchmark under Article 51.
- Contract type terminology (limited vs unlimited)
- Work models (full-time, part-time, flexible, remote, temporary, shared)
- Gratuity calculation framework
- End-of-service benefits
Frequently Asked Questions
What is UAE gratuity (end-of-service benefit)?
UAE gratuity, also called an end-of-service benefit (EOSB), is a lump-sum payment that eligible private-sector employees receive when their employment ends. It is calculated based on the employee's basic wage and length of continuous service. The legal basis is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, primarily Article 51.
Is gratuity mandatory in the UAE?
Yes. Under UAE Labour Law, qualifying private-sector employees are entitled to end-of-service gratuity. Employers are legally required to pay it upon termination of a qualifying employment relationship. It is not voluntary — it is a statutory entitlement.
Is gratuity mandatory in salary?
Gratuity is not included in your monthly salary. It is an end-of-service payment made when employment ends, provided the eligibility threshold is met. Some employers may structure total compensation packages that reference gratuity, but the statutory entitlement itself is paid at the end of the employment relationship.
What is end-of-service benefit?
End-of-service benefit (EOSB) is the formal term used in UAE law for what is commonly called gratuity. It is a payment made to eligible employees when their employment ends, calculated on the basis of their last basic wage and total years of continuous eligible service. The final settlement an employee receives may also include other components such as unpaid salary, accrued annual leave, and notice-related amounts.
What is the maximum gratuity amount?
Under the standard UAE private-sector framework, total gratuity shall not exceed the equivalent of two years' basic wage. This means if the calculated gratuity based on days and daily wage exceeds two years of basic salary, it is capped at that amount. Use our calculator to see whether the cap applies to your situation.
Is there any maximum limit for gratuity?
Yes. Under the standard UAE framework, the maximum gratuity is capped at the equivalent of two years' basic wage. For example, if your monthly basic salary is AED 10,000, your annual basic wage is AED 120,000, and the maximum gratuity cap is AED 240,000. Individual circumstances and applicable regimes may affect this.
Can I get my gratuity in advance in the UAE?
Generally, UAE gratuity is payable upon the termination of the employment relationship. Advance payment of gratuity is not a standard provision under the general UAE Labour Law framework. Some employers may have separate arrangements, but these should be reviewed carefully. Contact MOHRE or a qualified UAE employment lawyer for guidance on your specific situation.
How can I check my gratuity online?
You can estimate your gratuity using our free calculator on this website. For official verification, you can contact MOHRE (Ministry of Human Resources and Emiratisation) through the MOHRE website at mohre.gov.ae, their smart services platform, or their call centre. Your employer is also required to provide a clear account of end-of-service entitlements.
Can gratuity be waived?
UAE Labour Law generally protects employee rights and does not allow waiver of statutory entitlements through contractual provisions that are less favourable than the law. An employee cannot be made to sign away their legal gratuity entitlement. If you believe your employer is improperly withholding gratuity, you should contact MOHRE.
Can part-time employees receive gratuity?
Part-time workers and other flexible work models are recognised under Federal Decree-Law No. 33 of 2021. However, the gratuity calculation for part-time and other non-standard work models may differ from the standard full-time calculation. Specific rules apply based on the work model and contract. Verify your specific entitlement with MOHRE or a legal professional.
Official Sources & Legal Basis
Official Sources
GovUAE Government Portal — u.aeMOHREMinistry of Human Resources — mohre.gov.aeIndependence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.