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UAE gratuity calculator for end-of-service benefits

End-of-service gratuity in the UAE is a lump sum that a private-sector employer pays a full-time expatriate worker with at least one year of continuous service, based on the last basic wage.

Calculate UAE end-of-service gratuity under Decree-Law 33 of 2021: 21 days' basic wage a year for five years, then 30 days, capped at two years' pay.

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Rules of Federal Decree-Law 33 of 2021, Article 51, as described on the UAE government portal (page updated 15 October 2026). Reviewed 30 October 2026.

An estimate for full-time private-sector employees on the mainland. It does not cover UAE nationals, part-time contracts, or the DIFC and ADGM free zones, which have their own rules, and it does not deduct amounts the worker owes the employer.

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Inputs

UAE and Qatar: basic wage without allowances. Saudi Arabia: the full last wage, including allowances.
Under UAE law the reason does not change the gratuity. It changes the result only for Saudi Arabia.

Result

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GratuityAED 24,500.00
Service3 years, 6 months, 0 days
Daily basic wageAED 333.33
CapAED 240,000.00

This follows UAE mainland private-sector rules (Federal Decree-Law 33 of 2021, Art. 51). UAE nationals (GPSSA pension law) and employees in DIFC or ADGM have their own regimes; do not use this result for them.

Use the last basic wage only: housing, transport and other allowances are excluded.

This assumes full-time work. For part-time and other work patterns the full-time gratuity is scaled by contract hours over full-time hours (Art. 52).

The employer may deduct amounts the worker owes under law or a court judgment (Art. 51(7)) and must pay within 14 days of the contract ending (Art. 53).

United Arab Emirates end-of-service breakdown

PartYearsRateAmount
Years 1-53.521 days' basic wage per yearAED 24,500.00
After year 5030 days' basic wage per yearAED 0.00
Cap24 × monthly basic wageAED 240,000.00 (not reached)
Country: United Arab Emirates (Federal Decree-Law 33 of 2021, Art. 51)
Monthly basic wage: AED 10,000.00
Service: 3 years, 6 months, 0 days (1,279 days counted)
Service in years: 3.5 (whole years and months, plus remaining days ÷ 365)
Daily basic wage: AED 333.33 (basic ÷ 30)
Gratuity before cap: AED 24,500.00
Cap (24 × monthly basic): AED 240,000.00, not reached
Gratuity: AED 24,500.00

Examples

Three and a half years

Basic wage AED 10,000 a month, so a daily wage of 10,000 ÷ 30 = AED 333.33. 21 days × 3.5 years = 73.5 days, giving AED 24,500.

Seven years

21 days × 5 years + 30 days × 2 years = 165 days × AED 333.33 = AED 55,000.

The two-year cap

After 26 years on AED 10,000: 105 + 30 × 21 = 735 days = AED 245,000, which is above the cap of 24 months' basic wage, so the gratuity is AED 240,000.

Less than a year

11 months of service: no gratuity, because the minimum is one year of continuous service.

Resignation

The same seven years end in a resignation: still AED 55,000. Decree-Law 33 of 2021 has no resignation reduction.

How to use it

  1. Keep the country set to the United Arab Emirates and enter the last monthly basic wage, without housing, transport or other allowances.
  2. Enter the first day of work and the last day of work.
  3. Add any days of unpaid absence, which do not count as service.
  4. Read the years of service, days of wage due and gratuity, then copy, download or print them.

Questions

How is gratuity calculated in the UAE?
For each of the first five years of service the worker earns 21 days' basic wage, and 30 days' basic wage for each year after that. The daily wage is the monthly basic wage ÷ 30. Part years count pro rata once a full year has been worked.
Does resigning reduce my gratuity?
No. Under Federal Decree-Law 33 of 2021 the gratuity is the same whether the worker resigns or the employer ends the contract. The one-third and two-thirds reductions of the old 1980 law were repealed.
Is gratuity based on basic salary or total salary?
On the last basic wage only. Housing, transport and other allowances are left out.
Is there a maximum?
Yes. The total cannot exceed two years' wage. The calculator applies this as 24 times the monthly basic wage, which binds after about 25.5 years of service.
Do unpaid leave days count?
No. Days of unpaid absence are excluded from the period of service, so enter them and the calculator shortens the service period.
When must the employer pay it?
Within 14 days of the end of the contract. The employer may deduct amounts the worker owes under the law or a court judgment.
Who does this not apply to?
UAE nationals, who are covered by the pension law instead, and employees in the DIFC and ADGM free zones, which have their own employment laws. An employer may also use an approved savings scheme instead of gratuity.
Is my data sent anywhere?
No. The calculation runs entirely in your browser and nothing is uploaded.

Sources

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