UAE Gratuity Calculator
Calculate your end-of-service benefit under UAE Labour Law (Federal Decree-Law 33/2021) from basic salary and length of service.
Your details
| Daily wage (basic / 30) | AED 0.00 |
| First 5 years (21 days/year) | AED 0.00 |
| Years beyond 5 (30 days/year) | AED 0.00 |
| Statutory cap (2 years' basic) | AED 0.00 |
| Total service | 0 years |
Calculated on basic salary only — allowances excluded. Rates verified October 2026.
Enter basic salary
Type your monthly basic salary in AED — not your gross salary. Allowances do not count.
Add your service period
Enter full years plus any extra months. You need at least one year of continuous service to qualify.
Get your gratuity
See your total end-of-service benefit with a full breakdown of each part of the formula.
How the UAE gratuity calculator works
End-of-service gratuity is a legal right for private-sector employees in the UAE under Article 51 of Federal Decree-Law 33/2021. This gratuity calculator applies the statutory formula exactly: 21 days of basic pay for each year of the first five years of service, and 30 days of basic pay for each year beyond five. A "day" is defined as one-thirtieth of the monthly basic salary.
The gratuity formula explained
Gratuity = (basic / 30 x 21 x years up to 5) + (basic / 30 x 30 x years beyond 5)
For example, an employee with 7 years of service and a basic salary of AED 5,000: the first 5 years give (5000/30 x 21 x 5) = AED 17,500, and the remaining 2 years give (5000/30 x 30 x 2) = AED 10,000, for a total of AED 27,500.
Eligibility and limits
- Minimum service: you must complete at least one year of continuous service. Under one year, gratuity is zero.
- Statutory cap: total gratuity cannot exceed two years of basic salary (basic x 24), no matter how long you served.
- Basic salary only: housing, transport, and other allowances are excluded — the law is explicit on this.
- Contract type: limited and unlimited contracts now use the same formula; the old distinction was abolished in the 2021 Labour Law.
Who this applies to
The formula covers full-time private-sector employees governed by Federal Decree-Law 33/2021. DIFC and ADGM free zones, domestic workers, and government employees follow their own rules and may differ. Part-time workers receive a proportional gratuity — check your contract terms.