Gratuity Calculator UAE: End-of-Service Pay Explained
How is gratuity calculated in the UAE?
As of November 2026, eligible full-time foreign workers receive 21 days of basic wage per year for the first five years and 30 days per year after that. At least one year of continuous service is required. Unpaid absence is excluded and an overall two-year wage cap applies.
Published . Updated .
Content record as of November 2026. Checked against MOHRE, UAE Government and applicable employment authority pages on 12 November 2026.
Use your last basic salary and eligible service under Article 51. The calculator shows each service portion. If the two-year wage cap may affect the amount, it withholds a final estimate pending MOHRE confirmation.
In this guide
Calculate your UAE end-of-service gratuity
Use this estimate for a full-time foreign employee covered by the federal private-sector labour law and the traditional gratuity system. Have your contract, final basic salary and unpaid-absence record ready. The result covers gratuity before lawful deductions.
Where the two-year wage cap may matter, the tool withholds a final estimate pending confirmation of the wage basis.
Gratuity calculator UAE
Enter your dates and salary to see the service and wage breakdown.
Formula: daily basic wage = monthly basic ÷ 30. Eligible service years = (inclusive calendar days − unpaid days) ÷ 365. Gratuity = daily basic × [21 × first five eligible years + 30 × eligible years above five], subject to Article 51’s two-year wage cap. Below one eligible year, statutory gratuity is zero.
Article 51 sets the entitlement and service rules. Article 67 states that the year has “365” days and the month “30” days. This tool includes both entered dates; reconcile the last counted day with payroll before relying on an amount.
What Article 51 says
As of November 2026, Federal Decree-Law 33 of 2021, Article 51 provides gratuity after at least one year of continuous service. It uses basic wage, with 21 days for each of the first five years and 30 days for each later year.
| Part of calculation | Federal rule | Where to check |
|---|---|---|
| Minimum service | One year or more of continuous service | Article 51(2) |
| First five years | 21 days of basic wage per year | Article 51(2)(a) |
| Later service | 30 days of basic wage per year above five | Article 51(2)(b) |
| Part year | Proportionate entitlement once the minimum is met | Article 51(3) |
| Unpaid absence | Excluded from service calculation | Article 51(4) |
| Salary reference | Last basic wage for monthly-paid employees | Article 51(5) |
| Overall limit | Two years’ wage | Article 51(6) |
Article 51(6) says “two years’ wage”; it does not say “two years’ basic wage”. This tool shows an uncapped calculation. If it exceeds 24 months of basic salary, it withholds a final estimate and directs you to MOHRE to confirm the applicable wage cap. It never substitutes a lower cap as a precaution.
Do not apply an old resignation percentage found in an undated article. The Article 51 formula shown here does not reduce the benefit simply because you resign. A contractual entitlement, a lawful deduction and a different employment regime are separate questions.
Check salary and service before calculating
Your bank credit may include housing, transport and other allowances. Use the basic salary recorded in the final employment terms, rather than the total amount reaching your bank. The UAE government’s gratuity guidance confirms that allowances are excluded from the standard calculation.
Collect the start record, contract changes, termination date and unpaid-leave approvals. A contract renewal with the same employer is not a reason to throw away the earlier service record. If there was a change of legal employer, identify it and ask how continuity is recorded before combining periods.
Enter unpaid absence once. Do not subtract annual leave with pay merely because you were away from the office. If payroll has already supplied a service period with unpaid days removed, entering that period and subtracting the days again would understate the estimate.
The tool converts counted days into 365-day years under Article 67. Leap days therefore appear in the day count. An inclusive final date can also change the estimate by a day. Compare the exact dates and day-count method with your employer, especially near the minimum-service threshold.
Worked gratuity examples
These are arithmetic examples using assumed eligible service, rather than promises about a particular employee’s entitlement. All use AED 6,000 monthly basic salary, so the daily basic rate is AED 6,000 ÷ 30 = AED 200.
| Assumed eligible service | Calculation | Gross estimate |
|---|---|---|
| Three years | 200 × 21 × 3 | AED 12,600 |
| Seven years | (200 × 21 × 5) + (200 × 30 × 2) | AED 33,000 |
| Three years and 100 eligible days | 200 × 21 × (3 + 100 ÷ 365) | AED 13,750.68 |
For a separate unpaid-absence example, assume an inclusive employment period of 1,095 days and 30 unpaid days. Eligible service is 1,065 ÷ 365 years. At the same salary, the calculation is AED 200 × 21 × 1,065 ÷ 365 = AED 12,254.79.
Changing the allowance total does not change these examples. Changing the final basic wage does. Keep intermediate decimals until the final money result; rounding the daily rate or service years too early can produce a different total.
DIFC, ADGM, pensions and savings schemes
A Dubai address does not establish which employment law applies. DIFC Courts guidance explains that eligible DIFC employees enter DEWS or another qualifying contribution scheme. Earlier accrued gratuity may need separate treatment. This calculator does not value a DEWS account.
ADGM has its own Employment Regulations. Its gratuity calculation and definitions require separate checking. Do not use the monthly-basic-divided-by-30 result above for an ADGM contract just because some service-year rates look similar.
Article 51(1) directs UAE nationals to pension and social-security legislation. Federal and local government employees and domestic workers are outside this calculator’s scope. Check the employment authority named in your contract and the applicable pension arrangements.
The federal alternative Savings Scheme can also replace traditional gratuity for enrolled service. Ask for the enrolment date, fund statement and treatment of earlier accrued benefits. Part-time and other work patterns need their own proportional rules, rather than the full-time total shown here.
Check your final settlement line by line
Article 53 requires wages and other termination entitlements to be paid within 14 days after the contract ends. Gratuity is one line of that account. Check unpaid salary, unused annual leave and any overtime owed separately.
- Ask for a written service and basic-wage breakdown.
- Match unpaid days to dated records.
- Separate gross gratuity from deductions and ask for the legal basis of each deduction.
- Compare the statement with bank payments and retain the payment reference.
- If there is a dispute, use MOHRE or the competent employment authority’s official service.
Article 51(7) permits deductions under the law or a judgment subject to implementing rules. An employer’s unexplained net figure is not a substitute for that breakdown. If an ILOE fine is shown, reconcile it against your official fine record so you can identify any duplicate recovery.
Common questions
Is a Dubai gratuity calculator different from the UAE calculation?
The Article 51 formula is the same for employees covered by the federal private-sector law. DIFC has a separate regime and qualifying savings schemes. Check the legal employer and applicable law first.
Is gratuity based on basic or total salary?
Article 51 uses the last basic wage for monthly-paid workers. Housing, transport and other allowances are excluded from the ordinary gratuity calculation.
Can I receive gratuity before completing one year?
Article 51 requires at least one year of continuous service. A better contractual benefit is a separate question. Unpaid absence is excluded from service calculations.
How do fractions of a year affect gratuity?
After the minimum service requirement is met, Article 51 provides proportionate gratuity for part of a year. This tool converts eligible days into 365-day years and shows its method.
Does resignation reduce gratuity?
The Article 51 formula used here does not apply an old resignation-percentage reduction. Check the applicable law, alternative scheme, contract and any lawful deductions separately.
Is this the official MOHRE end-of-service calculator?
No. This is an independent planning tool. Confirm dates, salary basis, applicable law and deductions with payroll or the competent authority. The estimate excludes other final-settlement items.
Official sources
- UAE Government — Federal Decree-Law 33 of 2021, labour law — checked
- MOHRE — Labour law and Executive Regulations — checked
- UAE Government — End-of-service benefits — checked
- DIFC Courts — Employment Law FAQs — checked
- ADGM — Employment Affairs Office — checked
- MOHRE — Official services — checked
SettleUAE is an independent guide, not a government website, and is not affiliated with any UAE authority. This is general information, not personal legal, financial or immigration advice.