How UAE gratuity is calculated
- Daily wage = last basic monthly salary ÷ 30
- First 5 years: 21 days for each year
- After 5 years: 30 days for each year
- Maximum: 2 years of basic salary
- Eligibility: at least 1 year of continuous service; part years after that are paid pro rata
Worked examples (basic salary AED 10,000)
| Service | Gratuity |
|---|---|
| 3 years | 63 days × 333.33 = AED 21,000 |
| 5 years | 105 days × 333.33 = AED 35,000 |
| 10 years | 255 days × 333.33 = AED 85,000 |
| 30 years | 855 days is over the cap, so it is limited to AED 240,000 (2 years) |
For employers
Gratuity is a liability that grows every year, so budget for it from the first contract. We draft compliant employment contracts, and our PRO team runs work permits and visas.
General information, not legal advice. The calculator is an estimate under Article 51 of Federal Decree-Law 33 of 2021 and Cabinet Resolution 1 of 2022, as published by September 2026. The final amount depends on your contract and any other dues or deductions.
Frequently Asked Questions
How is gratuity calculated in the UAE?
On your last basic salary: 21 days of basic pay for each of the first 5 years, and 30 days for each year after that. The daily wage is the basic monthly salary divided by 30, and the total cannot exceed 2 years of basic salary.
Am I entitled to gratuity if I resign?
Yes, after at least 1 year of continuous service. Under the 2021 Labour Law, resignation and termination give the same gratuity.
Is gratuity paid on basic salary or total salary?
On basic salary only. Housing, transport and other allowances, bonuses and commissions are not included.
Do I get gratuity if I worked less than 1 year?
No. Gratuity is due only after 1 year of continuous service. Part years after the first year are paid pro rata.
Does unpaid leave count towards gratuity?
No. Days of unpaid absence are taken off your counted service.
What is the maximum gratuity in the UAE?
The total cannot exceed 2 years of basic salary.
Does this calculator apply to DIFC and ADGM?
No. DIFC and ADGM have their own employment laws and end of service schemes. This calculator follows the federal Labour Law for the private sector.
