UAE gratuity calculator (end of service estimate)

The rules this estimate uses

End-of-service gratuity for private-sector workers is set by Article 51 of Federal Decree-Law No. 33 of 2021 Regulating Labour Relations (the UAE Labour Law, in force since 2 February 2022). For a foreign worker on a full-time contract it says:

• At least one year: you qualify after one or more years of continuous service (Article 51(2)). Under one year there is no gratuity.
• 21 days, then 30 days: 21 days' basic wage for each of the first five years, and 30 days' basic wage for each year after that (Article 51(2)).
• Part years count: once you have one full year, parts of a year are paid in proportion (Article 51(3)).
• Unpaid days are left out: days of absence without pay are not counted as service (Article 51(4)).
• Last basic wage: it is worked out on the last basic wage you received, without allowances (Article 51(5)).
• Cap: the total cannot be more than two years' wage (Article 51(6)).
• Deductions: the employer may deduct amounts you owe by law or by a court judgment (Article 51(7)).

Read the official text on the UAE Legislation portal and the summary on the official UAE government portal. Rules last checked on 29 October 2026.

How the calculator counts

1. Service: whole years from your first working day to the anniversary on or before the day after your last working day, then the days left over. Unpaid days come off those leftover days. The part year is the leftover days ÷ 365.
2. Daily basic wage: monthly basic ÷ 30. The law does not spell out the divisor; ÷ 30 treats every month as 30 days and is the common method. Under More options you can use basic × 12 ÷ 365 instead, which gives about 1.4% less.
3. Gratuity days: 21 × the years up to 5, plus 30 × the years above 5.
4. Amount: gratuity days × daily wage, limited to 24 months' wage. The cap uses your basic salary unless you enter a total wage; it only matters after roughly 25 years of service.

Worked example

Basic salary AED 6,000 a month, first day 1 March 2019, last day 31 August 2026, 10 days of unpaid leave:

• Service: 7 full years (to 1 March 2026) plus 184 days, minus 10 unpaid days = 7 years and 174 days, or 7.4767 years.
• Daily basic wage: 6,000 ÷ 30 = AED 200.
• First 5 years: 5 × 21 = 105 days. The other 2.4767 years: 2.4767 × 30 = 74.30 days. Total 179.30 days.
• Gratuity: 179.30 × 200 = about AED 35,860.27. The cap (24 × 6,000 = AED 144,000) is not reached. With the ÷ 365 method it would be about AED 35,369.04.

What this estimate does not cover

• UAE nationals are covered by the pensions and social security law instead (Article 51(1)).
• DIFC and ADGM have their own employment laws with different gratuity rules (for example, a different daily rate and pension or savings schemes). This calculator does not apply to them. Other free zones generally follow the federal Labour Law; check with your free zone authority.
• Part-time and other work types are paid in proportion to the hours in the contract under Cabinet Resolution No. 1 of 2022. Piece-rate workers use an average daily wage. Neither is handled here.
• The Savings Scheme: if your employer enrolled you in the voluntary alternative end-of-service scheme, the fund pays your benefit for the enrolled period instead.
• Unpaid salary, leave pay and notice pay are separate amounts and are not included. Under the old law (before February 2022) a resignation could reduce gratuity; Article 51 has no such reduction, but service before 2022 may raise questions only MOHRE or a court can settle.

This is an estimate, not legal or financial advice. For the official figure or a dispute, contact the Ministry of Human Resources and Emiratisation (MOHRE).

Need your hourly or daily rate for something else? The salary to hourly calculator converts between pay periods.

FAQ

How is gratuity calculated in the UAE?

Under Article 51 of the UAE Labour Law, a full-time foreign worker with at least one year of service gets 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after that, with part years in proportion, up to two years' wage in total.

Is gratuity based on basic salary or total salary?

On the last basic salary only. Housing, transport and other allowances are not included.

Do I get gratuity if I resign?

Article 51 of the current law gives the same gratuity whether you resign or are let go, once you have one year of continuous service. Special cases, such as contracts that started under the old law, are for MOHRE or the courts to decide.

Do I get gratuity for less than one year of service?

No. The law requires at least one year of continuous service. After that, part years are paid in proportion.

Does unpaid leave reduce my gratuity?

Yes. Days of absence without pay are not counted as service, so they shorten the period your gratuity is based on.

Does this calculator work for DIFC or ADGM?

No. DIFC and ADGM have their own employment laws with different rules, so this estimate does not apply there.

Is this the official MOHRE gratuity calculator?

No. It is an independent estimate by Plainwren, not affiliated with MOHRE or any government body. MOHRE can confirm the official amount.