UAE Gratuity Calculator 2026
Calculate your UAE end-of-service gratuity in seconds using your last basic salary, joining date and final working day.
This calculator uses the standard private-sector formula: 21 days of basic wage for each year of the first 5 years, then 30 days for each additional year.
Calculate gratuity
For UAE mainland and most non-DIFC free-zone private-sector employees.
UAE gratuity formula at a glance
Daily wage = last basic monthly salary ÷ 30. If you completed at least one year of continuous service, UAE Labour Law Article 51 calculates gratuity on the last basic wage.
First 5 years: (Basic salary ÷ 30) × 21 × years worked
After 5 years: (Basic salary ÷ 30) × 30 × additional years
The total gratuity cannot exceed the equivalent of two years of wage. Unpaid absence is not counted in the service period.
How to calculate gratuity in UAE
- Enter only your basic salary. Housing, transport, phone, education, commission and other allowances are not part of the gratuity base.
- Count your continuous service period. The calculator uses your first working day, last working day and any unpaid leave days.
- Apply the two tiers. Years 1 to 5 are paid at 21 days per year. Service after year 5 is paid at 30 days per year. Partial years are included proportionally once you have passed one full year.
- Apply the legal cap. The final gratuity is capped at 24 months of basic salary.
Gratuity calculation examples
| Example | Basic salary | Formula | Gratuity |
|---|---|---|---|
| 2 years of service | AED 9,000 | (9,000 ÷ 30) × 21 × 2 = 300 × 21 × 2 | AED 12,600 |
| 5 years of service | AED 15,000 | (15,000 ÷ 30) × 21 × 5 = 500 × 21 × 5 | AED 52,500 |
| 8 years of service | AED 20,000 | First 5 yrs: (20,000÷30)×21×5 = AED 70,000 Next 3 yrs: (20,000÷30)×30×3 = AED 60,000 |
AED 130,000 |
| 10 years of service | AED 10,000 | First 5 yrs: (10,000÷30)×21×5 = AED 35,000 Next 5 yrs: (10,000÷30)×30×5 = AED 50,000 |
AED 85,000 |
UAE gratuity eligibility rules
- Less than 1 year: no end-of-service gratuity is payable.
- 1 to 5 years: 21 days of basic wage for each year of service, including proportional amounts for partial years.
- More than 5 years: 21 days per year for the first 5 years, then 30 days per year for the additional period, including partial years.
- Partial years: counted proportionally once the employee has completed at least one full year of service.
- Unpaid leave: deducted from the service period before the formula is applied.
- Final settlement timing: UAE Labour Law Article 53 requires the employer to pay wages and other end-of-contract entitlements within 14 days from the end date of the contract.
Limited vs unlimited contract gratuity in UAE
For current UAE private-sector employees, the old limited/unlimited resignation reduction is no longer the standard calculation. MOHRE announced that private-sector employers had until 31 December 2023 to convert unlimited-term contracts to fixed-term contracts. Today, the practical calculation is based mainly on basic salary, service length and unpaid leave.
People still search for “unlimited contract gratuity UAE” because older articles mention pre-2022 reductions. Keep those legacy rules out of the calculator interface to avoid confusing users, but answer the topic clearly in the FAQ below.
Dubai, Abu Dhabi, JAFZA, DMCC and other free zones
Mainland UAE and most standard free-zone employment gratuity follows the same 21-day and 30-day formula. DIFC is different because it uses qualifying workplace savings schemes such as DEWS instead of the standard lump-sum gratuity model. ADGM also has its own employment regulations, so employees in DIFC or ADGM should confirm the applicable scheme with HR.
Official sources used
This calculator is built from the public UAE Labour Law text and official guidance. For legal disputes, always verify your contract, registered basic wage and final settlement with MOHRE, your free-zone authority or a UAE labour lawyer.
- MOHRE: Federal Decree-Law No. 33 of 2021
- UAE Legislation: Labour Law text
- MOHRE: fixed-term contract transition deadline
- DIFC: DEWS qualifying schemes
UAE Gratuity Calculator FAQs
How is gratuity calculated in UAE?
Is UAE gratuity calculated on basic salary or total salary?
Do I get gratuity if I resign in UAE?
How much gratuity will I get for 5 years in UAE?
How much gratuity will I get for 10 years in UAE?
Are unpaid leave days deducted from gratuity?
Does the calculator work for Dubai and Abu Dhabi?
Is this an official MOHRE gratuity calculator?
Leaving your UAE job and preparing documents?
After final settlement, many employees need MOFA attestation, degree attestation, police clearance or visa documentation for their next job, family visa or relocation.
Ask GloboPrime MOFA attestation