UAE Gratuity Calculator

How Gratuity Is Worked Out in the UAE

For expatriates in the private sector, end of service gratuity follows Article 51 of Federal Decree-Law No. 33 of 2021, the UAE Labour Law. These are the rules as the official UAE government portal sets them out:

• You need at least one year of continuous service. Days of unpaid absence are not counted.
• For each of the first five years you receive 21 days of your basic wage.
• For each year after the first five you receive 30 days of your basic wage.
• Part years are paid in proportion to the time served, once you have completed one year.
• Gratuity is based on your last basic salary. Allowances such as housing, transport and utilities are not included.
• The total can never be more than two years of wage.
• Your employer must pay your end of service dues within 14 days of the contract ending, and may deduct amounts you owe them.

Part time workers receive the same benefit in proportion to their contracted hours compared with full time hours (Article 30 of Cabinet Resolution No. 1 of 2022). The normal full time week in the private sector is 8 hours a day or 48 hours a week. UAE nationals receive end of service benefits under the pensions and social security law instead. Employers who join the alternative savings scheme (Cabinet Resolution No. 96 of 2023) pay monthly contributions, and you receive that balance instead.

This calculator takes your daily basic wage as your monthly basic salary divided by 30, and counts one year as 365 days of service.

Source: The Official Portal of the UAE Government, end of service benefits for workers in the private sector, checked 20 October 2026.

A Worked Example

Sara has worked for exactly 7 years with a basic salary of AED 9,000 a month and no unpaid leave. Her daily basic wage is AED 300 (9,000 divided by 30). For the first five years she receives 5 times 21 days, which is 105 days. For the two years after that she receives 2 times 30 days, which is 60 days. In total that is 165 days, or AED 49,500.

Frequently Asked Questions

Is gratuity calculated on basic salary or total salary?

On basic salary. Allowances such as housing, transport, utilities and furniture are not part of the calculation.

Do I get gratuity if I resign?

The official rules link gratuity to completing at least one year of continuous service and do not set a lower rate for resignation, so the same 21 and 30 day rates apply.

Do I get gratuity if I worked less than one year?

No. Gratuity is only due after at least one year of continuous service.

Does unpaid leave count towards my service?

No. Days of unpaid absence are taken out of your service period before the gratuity is worked out.

How long does my employer have to pay?

Your employer must pay your end of service dues within 14 days of the contract ending.