UAE gratuity calculator

How UAE gratuity is calculated

Under Federal Decree-Law No. 33 of 2021, a full-time foreign worker in the private sector who completes at least one year of continuous service is entitled to an end-of-service gratuity based on the last basic salary:

• 21 days’ basic salary for each of the first five years.
• 30 days’ basic salary for each later year.
• Part-years are paid in proportion once the first full year is done.
• Days of unpaid leave or absence don’t count as service.
• The total can’t be more than two years’ basic salary.

With a basic salary of 9,000 AED (a daily wage of 300 AED) and 7 years of service: 5 × 21 × 300 + 2 × 30 × 300 = 31,500 + 18,000 = 49,500 AED.

Resigning no longer cuts your gratuity

Under the old law, resigning early reduced the gratuity to a third or two thirds. The 2021 law removed those reductions, so resigning and being let go are calculated the same way. Your employer can still deduct amounts you legally owe, such as an outstanding loan.

Basic salary only

Housing, transport, utilities and other allowances are left out. Enter the basic salary shown on your contract or payslip.

Who this doesn’t cover

UAE nationals are covered by pension and social security law. DIFC and ADGM have their own employment laws, and employers in the optional savings scheme pay into a fund instead. The law gives no rule for turning a monthly salary into a daily wage; this calculator uses basic ÷ 30, the most common practice.