UAE Gratuity Calculation Examples
Fully worked examples for the most common UAE gratuity scenarios. Every calculation verified against the standard formula under Federal Decree-Law No. 33 of 2021.
Formula reminder: Daily wage = monthly basic salary ÷ 30. Years 1–5: daily wage × 21 × years. Beyond 5 years: daily wage × 30 × years. Partial years: daily wage × rate × (days ÷ 365). Cap: 2 years' basic wage.→ Use the Calculator
Example 1: Exactly 1 Year — AED 6,000 Basic Salary
The minimum eligibility threshold. One complete year at 21 days per year.
📋 Scenario: 1 Year, AED 6,000/month
Basic salary = AED 6,000 / month Daily wage = 6,000 ÷ 30 = AED 200.00 / day Service = 1 complete year Gratuity = 200 × 21 × 1 = AED 4,200.00 Cap check = 6,000 × 24 = AED 144,000 (not reached)
Estimated Gratuity: AED 4,200
Example 2: 2 Years — AED 8,000 Basic Salary
Two complete years, all within the first-period rate of 21 days per year.
📋 Scenario: 2 Years, AED 8,000/month
Basic salary = AED 8,000 / month Daily wage = 8,000 ÷ 30 = AED 266.67 / day Service = 2 complete years Gratuity = 266.67 × 21 × 2 = AED 11,200.14 Cap check = 8,000 × 24 = AED 192,000 (not reached)
Estimated Gratuity: AED 11,200
Example 3: 4 Years — AED 10,000 Basic Salary
Four complete years, entirely within the 21-day-per-year first period.
📋 Scenario: 4 Years, AED 10,000/month
Basic salary = AED 10,000 / month Daily wage = 10,000 ÷ 30 = AED 333.33 / day Service = 4 complete years Gratuity = 333.33 × 21 × 4 = AED 28,000 Cap check = 10,000 × 24 = AED 240,000 (not reached)
Estimated Gratuity: AED 28,000
Example 4: 4 Years 7 Months — AED 10,000 Basic Salary
This is one of the most commonly searched scenarios. The partial 7-month period is added proportionally at the 21-day rate (still within first 5 years).
📋 Scenario: 4 Years 7 Months, AED 10,000/month
Basic salary = AED 10,000 / month Daily wage = 10,000 ÷ 30 = AED 333.33 / day Service = 4 years + 7 months (approx 213 days) 4 complete years = 333.33 × 21 × 4 = AED 28,000.00 7 months (213d) = 333.33 × 21 × (213÷365) = 333.33 × 21 × 0.5836 = AED 4,083.95 Total = 28,000 + 4,083.95 = AED 32,083.95 Cap check = 10,000 × 24 = AED 240,000 (not reached)
Estimated Gratuity: ≈ AED 32,084
Note: exact days vary by calendar. Use our calculator with your specific dates for precision.
Example 5: Exactly 5 Years — AED 12,000 Basic Salary
Exactly 5 years — the maximum at the 21-day rate before switching to 30 days per year.
📋 Scenario: Exactly 5 Years, AED 12,000/month
Basic salary = AED 12,000 / month Daily wage = 12,000 ÷ 30 = AED 400.00 / day Service = 5 complete years Gratuity = 400 × 21 × 5 = AED 42,000.00 Cap check = 12,000 × 24 = AED 288,000 (not reached)
Estimated Gratuity: AED 42,000
Example 6: 5 Years 1 Month — AED 12,000 Basic Salary
Just past the 5-year threshold. The extra 1 month falls into the second period at 30 days per year.
📋 Scenario: 5 Years 1 Month, AED 12,000/month
Basic salary = AED 12,000 / month Daily wage = 12,000 ÷ 30 = AED 400.00 / day Service = 5 years + 1 month (approx 30 days) First 5 years = 400 × 21 × 5 = AED 42,000.00 1 month (30d) = 400 × 30 × (30÷365) = 400 × 30 × 0.0822 = AED 986.30 Total ≈ AED 42,986.30 Cap check = 12,000 × 24 = AED 288,000 (not reached)
Estimated Gratuity: ≈ AED 42,986
Example 7: 7 Years 7 Months — AED 10,000 Basic Salary
A very commonly searched scenario. This spans both periods: 5 years at 21 days/year, then 2 years 7 months at 30 days/year.
📋 Scenario: 7 Years 7 Months, AED 10,000/month
Basic salary = AED 10,000 / month Daily wage = 10,000 ÷ 30 = AED 333.33 / day Service = 7 years + 7 months First 5 years: = 333.33 × 21 × 5 = AED 35,000.00 Next 2 years: = 333.33 × 30 × 2 = AED 20,000.00 7 months (213d): = 333.33 × 30 × (213÷365) = 333.33 × 30 × 0.5836 = AED 5,835.62 Total = 35,000 + 20,000 + 5,835.62 = AED 60,835.62 Cap check = 10,000 × 24 = AED 240,000 (not reached)
Estimated Gratuity: ≈ AED 60,836
Example 8: 8 Years — AED 15,000 Basic Salary
Eight complete years: 5 at 21 days/year + 3 at 30 days/year.
📋 Scenario: 8 Years, AED 15,000/month
Basic salary = AED 15,000 / month Daily wage = 15,000 ÷ 30 = AED 500.00 / day Service = 8 complete years First 5 years: = 500 × 21 × 5 = AED 52,500.00 Next 3 years: = 500 × 30 × 3 = AED 45,000.00 Total = AED 97,500.00 Cap check = 15,000 × 24 = AED 360,000 (not reached)
Estimated Gratuity: AED 97,500
Example 9: Unpaid Absence Scenario — 3 Years with 90 Days Unpaid Leave
90 days of approved unpaid absence reduces eligible service from 3 years to approximately 2 years 9 months.
📋 Scenario: 3 Years Total, 90 Days Unpaid Leave, AED 9,000/month
Basic salary = AED 9,000 / month Daily wage = 9,000 ÷ 30 = AED 300.00 / day Total service = 3 years = 1,095 days Unpaid absence = 90 days Eligible service = 1,095 - 90 = 1,005 days 1,005 ÷ 365 = 2.7534 years 2 complete years = 300 × 21 × 2 = AED 12,600.00 275 days partial = 300 × 21 × (275÷365) = 300 × 21 × 0.7534 = AED 4,746.41 Total ≈ AED 17,346.41 Cap check = 9,000 × 24 = AED 216,000 (not reached)
Estimated Gratuity: ≈ AED 17,346
Example 10: High Salary — Cap Applied
When the calculated gratuity exceeds 2 years' basic wage, the cap kicks in. This happens at very high salaries or very long service.
📋 Scenario: 20 Years, AED 50,000 Basic Salary — Cap Applied
Basic salary = AED 50,000 / month Daily wage = 50,000 ÷ 30 = AED 1,666.67 / day Service = 20 complete years First 5 years: = 1,666.67 × 21 × 5 = AED 175,000.35 Next 15 years: = 1,666.67 × 30 × 15 = AED 750,001.50 Raw total = AED 925,001.85 Cap = 50,000 × 24 = AED 1,200,000 Cap check: 925,001.85 < 1,200,000 → Cap NOT reached Final = AED 925,001.85 (Cap would apply if raw total exceeded AED 1,200,000)
Estimated Gratuity: ≈ AED 925,002
Example 11: Maximum Cap Applied — AED 30,000 Salary, 25 Years
📋 Scenario: 25 Years, AED 30,000/month — Cap Applied
Basic salary = AED 30,000 / month Daily wage = 30,000 ÷ 30 = AED 1,000.00 / day Service = 25 complete years First 5 years: = 1,000 × 21 × 5 = AED 105,000 Next 20 years: = 1,000 × 30 × 20 = AED 600,000 Raw total = AED 705,000 Cap = 30,000 × 24 = AED 720,000 Cap check: 705,000 < 720,000 → Cap NOT reached Final = AED 705,000
Estimated Gratuity: AED 705,000
Example 12: Less Than 1 Year — Not Eligible
📋 Scenario: 10 Months, AED 8,000/month
Service = 10 months = approximately 304 days Minimum required = 365 days Result = NOT ELIGIBLE No gratuity is payable under the standard framework for less than 1 complete year of eligible service.
❌ Not eligible — minimum 1 year required
⚠ Disclaimer: This calculator provides an estimate only, based on the general UAE private-sector framework under Federal Decree-Law No. 33 of 2021. It does not constitute legal advice. Individual entitlements may differ based on employment contract, applicable free-zone rules, special work models, unpaid absences, and other factors. Always verify your specific entitlement with your employer, MOHRE, or a qualified UAE employment lawyer.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.
Official Sources
GovUAE Government Portal — u.aeMOHREMinistry of Human Resources — mohre.gov.aeLawFederal Decree-Law No. 33 of 2021 — Article 51
Last reviewed: 2025-01-15 • Rule version: 2021-DL33 • Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.