Informational estimate only — not legal or tax advice. Covers mainland private-sector contracts under Federal Decree-Law 33/2021. Excludes DIFC/ADGM (DEWS), domestic workers, and GCC nationals under GPSSA. Verify your final settlement with MOHRE — MOHRE's ruling prevails.
UAE Gratuity Calculator
Estimate your end-of-service gratuity under the UAE Labour Law (Federal Decree-Law 33/2021) — with the 21/30-day breakdown and the two-year salary cap.
How UAE gratuity is actually calculated.
Under Federal Decree-Law No. 33 of 2021 (in force since 2 February 2022), a full-time private-sector employee who completes at least one year of continuous service is entitled to an end-of-service gratuity. It is calculated on the basic salary only — housing, transport and other allowances are excluded. Your daily wage is the monthly basic divided by 30. You then earn 21 days of basic wage per year for the first five years of service and 30 days per year for every year after that, with fractions of a year pro-rated. Seven and a half years on a basic of AED 10,000, for example, earns (5 × 21) + (2.5 × 30) = 180 days × AED 333.33 = AED 60,000. The total is capped at two years' basic salary, and days of unpaid leave are not counted as service.
One myth worth killing: resigning does not reduce your gratuity. Under the old 1980 law, employees who resigned before five years received only a third or two-thirds of the entitlement — those reduction tiers were abolished by the 2021 law. Whether you resign, are made redundant, or your contract simply ends, the calculation above applies in full. What can still affect the final figure are lawful deductions (for example, sums you owe the employer) and how your contract defines the basic wage, which is why the payslip line marked "basic" is the number to enter here.
Scope: this calculator models mainland UAE private-sector contracts under the 2021 law. It does not apply to DIFC or ADGM free-zone employees (who accrue savings under the DEWS-style workplace schemes instead), domestic workers (covered by their own law), UAE and GCC nationals enrolled in the GPSSA pension system (who receive a pension rather than gratuity), or service periods settled under the pre-2022 old-law tiers.
Everything is computed instantly in your browser — no figures are sent to a server. The result is an informational estimate, not legal or tax advice: final settlements are determined under UAE Labour Law, and in any dispute MOHRE's ruling prevails. Verify entitlements with MOHRE (and tax treatment with the FTA where relevant) before acting on the numbers.