UAE gratuity calculator

Free UAE end-of-service gratuity calculator under Labour Law Art. 51: 21 days a year for 5 years, 30 after, unpaid leave excluded, two-year cap. Full breakdown.

How it’s calculated

Count the service. Service runs from the first day to the last working day, both included. Days of unpaid absence are taken out. Service is then expressed in years of 365 days.

Check the one-year minimum. Gratuity is due only after at least one year of continuous service. Below that, nothing is due. Once the year is complete, part years count pro rata.

Find the daily basic wage. We use the last basic monthly wage × 12 ÷ 365. The law does not fix the daily-rate method; many employers and press examples use basic ÷ 30, which you can switch to.

Apply the two bands, then the cap. 21 days’ basic wage for each of the first five years and 30 days for each year after. The total cannot exceed two years’ wage.

Legal basis

DL 33/2021 Art 51(1)-(2): Full-time foreign workers with at least one year of continuous service: 21 days’ basic wage per year for the first 5 years, 30 days per year beyond.

DL 33/2021 Art 51(3)-(5): Part years are paid pro rata; days of unpaid absence are not counted; the last basic wage is used.

DL 33/2021 Art 51(6): The total gratuity may not exceed two years’ wage (Art 1 defines wage as basic plus allowances).

DL 33/2021 Art 51(7): The employer may deduct amounts the worker owes by law or court judgment.

Before you rely on it

An estimate, not legal advice. Contract terms, piece-rate pay and court rulings can change the figure.

DIFC employees are under DEWS (monthly 5.83% / 8.33% of basic) and ADGM has its own s61 scheme with no two-year cap. This tool covers mainland and most free zones.

UAE and GCC nationals are covered by pension law (GPSSA) instead of gratuity.

Does resigning reduce my gratuity?

No. Under Decree-Law 33/2021 resignation no longer reduces gratuity. The old one-third and two-thirds reductions belonged to the repealed Law 8/1980.

Is gratuity based on basic or total salary?

On the last basic wage. Allowances such as housing and transport are not part of the daily rate. They matter only for the two-year cap, which the law sets at “two years’ wage”; some practitioners apply 24 × basic, and you can choose that here.

What if I worked less than a year?

No gratuity is due before one year of continuous service. The calculator shows how many days are left to reach it.

Do unpaid leave days count?

No. Days of unpaid absence are excluded from the period of service, which can delay eligibility and lower the amount.

When must gratuity be paid?

With all other end-of-service dues, within 14 days of the end of the contract (DL 33/2021 Art 53).

I work in DIFC or ADGM. Does this apply?

Not exactly. DIFC replaced gratuity with DEWS monthly contributions. ADGM uses 21/30 days with a 365-day daily rate and no two-year cap. Use this as a guide only.