End-of-service gratuity calculator
Article 51 of the UAE Labour Law, worked through line by line. Enter the basic salary and the dates; part years and unpaid days are handled for you.
Gratuity due
AED 39,330
To be paid within 14 days of the last working day
Counted service
4.68 years
From 1 Mar 2022 to 4 Nov 2026
How it is worked out
| Daily wageBasic salary ÷ 30 | AED 400 |
|---|---|
| First five years4.68 years × 21 days | AED 39,330 |
| After five years0 years × 30 days | AED 0 |
| CeilingTwo years of wage | AED 288,000 |
| Gratuity | AED 39,330 |
- Resigning does not reduce gratuity under the 2021 Labour Law. The old one-third and two-thirds reductions no longer apply.
- UAE nationals are covered by GPSSA pension instead, so this formula does not apply to them.
- Money the employee owes the employer can be deducted from gratuity, within the limits the law sets.
- Some employers use the voluntary savings scheme (Cabinet Resolution 96 of 2023) instead. Then the fund pays out, not this formula.
How this is worked out
The same rules and fee tables run our real quotes. When a fee changes we update one file and every tool follows.
Under Federal Decree-Law 33 of 2021, a full-time foreign employee who completes at least one year of continuous service is owed end-of-service gratuity.
- The base is the last basic wage. Allowances are left out.
- Daily wage is basic divided by 30.
- 21 days of wage for each of the first five years, 30 days for each year after.
- Part years count pro rata once the first year is complete. Days of unpaid absence are taken out of the service period.
- The total is capped at two years of wage, and is due within 14 days of the end of employment.
If your employer has moved you to the voluntary savings scheme set up by Cabinet Resolution 96 of 2023, the fund pays your benefit and this formula does not apply for that period.
Sources
- End-of-service benefits, Article 51 of the Labour Law (u.ae) Official · checked 4 Nov 2026
- Federal Decree-Law No. 33 of 2021 on Labour Relations, as amended by Federal Decree-Law No. 9 of 2024 Official · checked 4 Nov 2026
Questions we get asked
Something else? Ask us directly. A person answers, usually the same working day.
How is gratuity calculated in the UAE?
On the last basic salary. The daily wage is basic divided by 30. You get 21 days of that for each of the first five years and 30 days for each year after, pro rata for part years. On a basic of AED 10,000, three years gives AED 21,000 and seven years gives AED 55,000.
Do I get gratuity if I resign?
Yes, once you have completed one year of continuous service. u.ae sets out one formula, with no separate rate for resigning, and this calculator uses it.
Is there a maximum?
Yes. Total gratuity cannot be more than two years’ wage.
When must it be paid?
Within 14 days of the end of employment, with any other dues. Late payment can be raised with MOHRE.
Does it apply to Emiratis?
No. UAE nationals in the private sector are covered by the GPSSA pension scheme instead.
Tell us who you’re hiring.
Role, salary, nationality and whether the family is coming. We reply with an itemised cost and a realistic start date, usually within one working day.