UAE Gratuity Calculator 2026
Calculate your UAE end-of-service gratuity using the current 2026 rules. Governed by Federal Decree-Law No. 33 of 2021.
UAE Gratuity Calculator
Free · Instant · Based on Federal Decree-Law No. 33 of 2021
UAE Gratuity Rules in 2026
The current UAE gratuity framework was established by Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), which came into effect on 2 February 2022. This law replaced the previous Federal Law No. 8 of 1980 and introduced significant changes to how employment relationships and end-of-service benefits are structured.
What Changed with the 2022 Law Reform
- Contract types: The previous limited/unlimited contract distinction was replaced by new work models (full-time, part-time, flexible, remote, temporary, shared-work). For gratuity purposes, the reduced-resignation rules that applied to unlimited contracts were replaced.
- Gratuity on resignation: Under the current law, employees who resign after completing at least one year of service are generally entitled to full gratuity calculated at the standard rates.
- Calculation rates maintained: The 21 days/30 days framework was retained.
- End-of-Service Savings Scheme: An optional alternative scheme was introduced separately, allowing employers to contribute to investment funds on behalf of eligible employees as an alternative to traditional gratuity.
Current 2026 Formula
What Has Not Changed in 2026
No verified fundamental changes to the gratuity calculation formula have been announced for 2026 as of the last review date. The following remain constant:
- 21 days' basic wage per year for the first 5 years
- 30 days' basic wage per year for service beyond 5 years
- Minimum 1 year for eligibility
- 2-year wage maximum cap
- Basic wage (not gross salary) as the calculation base
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.ae2026 Gratuity Rules FAQs
What are the rules for gratuity in the UAE in 2026?
As of 2026, the UAE general private-sector gratuity framework continues under Federal Decree-Law No. 33 of 2021. The standard formula remains: 21 days' basic wage per year for the first 5 years, 30 days' basic wage per year for service beyond 5 years, subject to the 2-year wage cap. No fundamental changes to the calculation formula are known to have been made for 2026. Always verify current rules with MOHRE.
What is the new rule for gratuity in the UAE?
The current UAE gratuity framework is governed by Federal Decree-Law No. 33 of 2021, which took effect in February 2022. Key changes from the previous law include: the removal of the limited/unlimited contract distinction for general private-sector workers, the introduction of new work models, and a clearer gratuity entitlement framework. The standard calculation rates (21 days/30 days) remain unchanged.
How is gratuity calculated in 2026?
In 2026, UAE gratuity continues to be calculated under the framework of Federal Decree-Law No. 33 of 2021: daily wage (monthly basic salary ÷ 30) × 21 days per year for the first 5 years, then 30 days per year for service beyond 5 years, with a maximum cap of 2 years' basic wage. Use our 2026 calculator for an up-to-date estimate.
What are the new rules for gratuity?
The latest UAE Labour Law reform (Federal Decree-Law No. 33 of 2021) is the primary basis for current gratuity rules. Key provisions include: minimum 1 year service for eligibility, 21 days/year for first 5 years, 30 days/year thereafter, 2-year maximum cap, and eligibility regardless of resignation (subject to minimum service). Special employment regimes may have additional rules.
What is the new gratuity rule in 2026?
As of 2026, no new fundamental changes to the UAE gratuity calculation formula have been introduced beyond the framework established by Federal Decree-Law No. 33 of 2021. The standard formula (21 days for first 5 years, 30 days thereafter) remains the general rule. Monitor MOHRE announcements and our Legal Updates page for any changes.
What are the new changes in gratuity rules?
The most significant recent change was Federal Decree-Law No. 33 of 2021 (effective February 2022), which replaced the previous UAE Labour Law. The key change relevant to gratuity was the removal of the distinction between limited and unlimited contracts, which previously affected gratuity entitlement on resignation. The standard calculation rates were maintained. The optional End-of-Service Savings Scheme was also introduced as an alternative framework.
What is the new rule for gratuity calculation?
Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021): gratuity = (monthly basic salary ÷ 30) × eligible days. Eligible days: 21 per year for first 5 years + 30 per year for service beyond 5 years. Maximum: 2 years' basic wage. Eligible service = total service minus unpaid absence.