UAE Gratuity Calculator 2026
Calculate your UAE end-of-service gratuity under the 2022 Labour Law, for both resignation and termination.
| Service period | — |
|---|---|
| Daily wage (basic ÷ 30) | — |
| First 5 years (21 days/year) | — |
| Beyond 5 years (30 days/year) | — |
| Total gratuity | — |
In short
UAE end-of-service gratuity is 21 days of basic wage for each of the first five years of service and 30 days per year thereafter, paid after at least one year of service and capped at two years' total wage. It is calculated on basic salary only.
Who this is for: UAE private-sector employees leaving a job, and HR teams checking an end-of-service settlement, under the 2021 Labour Law.
How UAE gratuity is calculated
Since the UAE Labour Law reform (Federal Decree-Law No. 33 of 2021, effective 2 February 2022), gratuity is calculated the same way whether you resigned or were terminated, and whether your contract was "limited" or "unlimited" — the old distinction between the two contract types was removed.
- Under 1 year of service: no gratuity is due.
- 1 to 5 years: 21 days of basic wage for each year of service.
- Beyond 5 years: 30 days of basic wage for each additional year.
- Cap: total gratuity cannot exceed two years' total wage.
Gratuity is calculated on your basic wage only — housing, transport, and other allowances are excluded.
See also: UAE Leave Salary Calculator.
Assumptions
- Gratuity is calculated on the basic salary you enter, not on allowances.
- 21 days' basic wage per year for years 1–5 and 30 days per year after that, with a daily wage of basic ÷ 30.
- Nothing is payable below one year of service; the total is capped at two years' basic wage.
- Since the 2022 law, resignation and termination are calculated the same way; the reason you select only changes the explanatory note.
Worked examples
Daily wage = 10,000 ÷ 30 = AED 333.33
First 5 years: 333.33 × 21 × 5 = AED 35,000
Remaining 1 year: 333.33 × 30 × 1 = AED 10,000
Total gratuity ≈ AED 45,000
Service is under 1 year, so no gratuity is due under current UAE law, regardless of how the employment ended.
Daily wage = 6,000 ÷ 30 = AED 200
3 years, all within the first 5: 200 × 21 × 3 = AED 12,600
Frequently asked questions
Does resigning reduce my gratuity in the UAE?
Under the current law (since 2022), no — resignation and termination are calculated the same way once you have completed at least 1 year of service. This is different from the older law, which reduced gratuity for resignation under some limited contracts.
Is gratuity calculated on basic salary or total salary?
Basic wage only. Housing allowance, transport allowance, and other benefits are not included in the calculation.
Is there a maximum gratuity amount?
Yes — total gratuity is capped at two years' total wage under Article 51(3) of the Labour Law.
Do free zone employees get the same gratuity?
Most UAE free zones (including DIFC and ADGM, which have their own employment regulations) may have different rules — check your free zone's specific regulations.
Is this calculator legal advice?
No. It is a general guide based on the federal Labour Law. For your specific contract and circumstances, consult a licensed UAE labour lawyer or HR consultant.
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