UAE Gratuity Calculator
Estimate your end-of-service gratuity using the current 2021 labour law formula — with no outdated resignation penalty — plus a full salary breakdown.
This is an estimate for general guidance, not an official settlement figure. Your actual gratuity is calculated and paid by your employer, and disputes are handled by MOHRE — always confirm your exact basic salary and service dates with your employer before relying on this figure.
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Your Estimate
Enter your salary and service dates, then click Calculate to see your results here.
How UAE Gratuity Actually Works in 2026
Under Article 51 of Federal Decree-Law No. 33 of 2021, private-sector expatriate employees who complete at least one year of continuous service are entitled to end-of-service gratuity, calculated on their basic salary only — allowances and bonuses are excluded. The single biggest myth still repeated by outdated calculators: that resigning gets you less than being terminated. That reduction was abolished in February 2022.
The Gratuity Formula
| Years of Service | Entitlement |
|---|---|
| Less than 1 year | No gratuity |
| 1 – 5 years | 21 days' basic salary per year |
| Beyond 5 years | 30 days' basic salary per additional year |
Total gratuity is capped at 24 months' (2 years') basic salary, no matter how long you've worked. Resignation and termination are treated identically once you've passed the one-year mark.
Who This Doesn't Apply To
UAE nationals are covered by the General Pension and Social Security Authority (GPSSA) pension system instead of this gratuity formula. Domestic workers follow a separate framework under Federal Decree-Law No. 9 of 2022. Some free zones, notably DIFC, use an alternative savings scheme (DEWS) rather than a lump-sum gratuity payout.
Frequently Asked Questions
No. Since 2 February 2022, under Federal Decree-Law No. 33 of 2021, the old reduction for resignation (one-third of gratuity for 1-3 years of service, two-thirds for 3-5 years) was permanently abolished. Resignation and termination now receive identical gratuity, provided you have completed at least one year of continuous service. Some older calculators and articles online still apply the outdated rule — always check that a tool references the current 2021 law specifically.
Basic salary only. Housing allowance, transport allowance, bonuses, commissions, and any other benefits are excluded from the calculation, even if your employment contract bundles them into a single monthly figure. If your offer letter or payslip doesn't clearly separate basic salary from allowances, ask your HR department to confirm the exact basic salary figure before relying on any gratuity estimate.
Yes. Total gratuity is capped at the equivalent of two years' (24 months') basic salary, regardless of how many years you actually worked. This calculator applies that cap automatically.
No. UAE nationals are covered by the General Pension and Social Security Authority (GPSSA) pension system instead of the Article 51 gratuity formula that applies to expatriate private-sector employees. If you're a UAE national, this calculator will not produce a meaningful gratuity figure for you — check your pension contributions and entitlement directly with GPSSA.
Less than one full year of continuous service generally means no gratuity entitlement at all. Partial years beyond your first full year are counted proportionally in the final calculation — this calculator handles that automatically based on your exact start and end dates.
No. Any period taken as unpaid leave is excluded when determining your total service period for gratuity purposes. This calculator uses your raw start and end dates and does not automatically deduct unpaid leave, so if you took extended unpaid leave, your actual entitlement may be slightly lower than shown here.
The UAE does not levy personal income tax on salaries, so unlike calculators built for other countries, there's no tax deduction to model — your gross basic and total salary figures are effectively your take-home pay, aside from any employer-specific deductions like loan repayments that aren't part of standard UAE tax law.
Employers are legally required to settle all end-of-service dues, including gratuity, within 14 days of your last working day. If this deadline passes without payment, you can file a complaint through MOHRE.
Yes — after calculating, click "Download PDF" to save a copy of your estimated salary and gratuity breakdown, including the same disclaimer shown on this page.
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