UAE · 2026
UAE gratuity calculator
What you're owed when you leave a private-sector job in the UAE, under Federal Decree-Law No. 33 of 2021. Enter your last basic salary and how long you worked; the result is the legal minimum your employer must pay within 14 days of your last day.
Your end-of-service gratuity
AED 35,000
105 days of wage for 5 years of service.
The rules
- You qualify after one full year of continuous service with the same employer. Under a year, nothing is due.
- 21 days' basic salary for each of the first five years, 30 days' for each year after that. Part years count pro rata.
- Only basic salary counts: housing, transport and other allowances are left out. The daily rate here is monthly basic ÷ 30.
- The total can't exceed two years' wage.
- Resigning no longer reduces it: under the 2022 law you get the full amount whether you resign or are let go.
- Days of unpaid leave are taken out of your service. Part-time workers get the same formula scaled to their hours.
- UAE nationals are covered by the pension law instead, and employers in the optional savings scheme pay into a fund rather than a lump sum.
Gratuity by years of service, on AED 10,000 a month
| Years | Gratuity |
|---|---|
| 1 | AED 7,000 |
| 2 | AED 14,000 |
| 3 | AED 21,000 |
| 5 | AED 35,000 |
| 7 | AED 55,000 |
| 10 | AED 85,000 |
| 15 | AED 135,000 |
| 20 | AED 185,000 |
Questions
How is gratuity calculated in the UAE?
Take your last monthly basic salary, divide by 30 for a daily wage, and multiply by 21 days for each of your first five years and 30 days for each year after. Part years count pro rata, and the total is capped at 24 months of wage.
Do I get gratuity if I resign?
Yes. Under Federal Decree-Law No. 33 of 2021, the gratuity is the same whether you resign or your employer ends the contract, as long as you've completed at least one year. The old reductions for resigning (a third or two thirds) applied under the 1980 law.
Is gratuity based on basic or total salary?
Basic salary only: the last basic wage you were entitled to, without housing, transport, utilities or other allowances. That's why employment contracts in the UAE often set basic salary well below total pay.
When must the employer pay it?
Within 14 days of the end of the contract, together with any unpaid wages and leave. The employer can deduct only amounts you owe under the law or a court judgment.
Does this apply in free zones like DIFC or ADGM?
Most free zones follow the federal rules, but DIFC and ADGM have their own employment laws, and DIFC replaced the lump-sum gratuity with monthly contributions to a savings scheme (DEWS). Check your free zone's rules.
Source: Federal Decree-Law No. 33 of 2021, Article 51; u.ae and Ministry of Human Resources and Emiratisation guidance. An estimate of the legal minimum, not legal advice: your contract may give more, and disputes go to the labour ministry. See also the UAE salary calculator.