UAE end of service

UAE gratuity calculator

Estimate your end-of-service gratuity from your last basic salary and your years of service. The formula is based on Article 51 of Federal Decree-Law No. 33 of 2021.

Used only for the two-year cap. Leave it blank to use the basic salary.

Estimated gratuity

AED 55,000

7 years of service on a basic salary of AED 10,000.

How the calculation works

The daily basic wage is your monthly basic salary divided by 30. For the first five years, you earn 21 days of basic wage for each year. After five years, you earn 30 days for each additional year. Partial years are counted in proportion after you complete one full year.

The total is capped at two years of wage. The cap in this calculator uses your total monthly salary when you provide it, because the law refers to two years of wage, not two years of basic salary. If you leave the total salary blank, the calculator uses the basic salary, which can understate the cap.

Worked example

AED 10,000 basic salary, 7 years of service.

Daily basic wage: 10,000 ÷ 30 = AED 333.33.

First five years: 333.33 × 21 × 5 = AED 35,000.

Next two years: 333.33 × 30 × 2 = AED 20,000.

Total: AED 55,000, before the two-year cap.

Questions

Is gratuity based on basic salary or total salary?

The calculation uses the last basic salary, not housing, transport, or other allowances. The two-year cap is based on wage, which is why the calculator asks for total salary separately.

Does resigning affect my gratuity?

Resignation does not reduce gratuity under the current law. A worker with one year of continuous service gets the Article 51 calculation whether they resign or the employer ends the contract. The exception is in the law's own text: Article 51 excludes terminations under Article 44, the dismissal without warning cases, from the entitlement. Check your contract and any free-zone rules.

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

No. The minimum is one continuous year of service. Partial years after the first year are counted in proportion.

Does unpaid leave count as service?

Unpaid absence is excluded from the service period. Enter the unpaid days in the calculator and they will be subtracted from your service time.

When must the employer pay?

Wages and end-of-service entitlements are due within 14 days of the contract end date under Article 53. If they are not paid, the employer may owe additional compensation.

Does this apply in DIFC, ADGM, or a free zone?

No. Free zones and financial centres can have their own employment rules. This calculator covers the UAE mainland private sector under Federal Decree-Law No. 33 of 2021. Check with the relevant free-zone authority.

Is this legal advice?

No. It is an estimate for planning. For a dispute or a final settlement, use MOHRE, a lawyer, or your free-zone authority.

Sources

Dot & Halo

Free tools, checked against the source law. No account and no sign-up.

Last checked 25 October 2026. This is an estimate, not legal advice. Free zones and special contracts can differ.