Free tool · checked 10 Nov 2026
UAE gratuity calculator
What your employer owes you when you leave, on top of your last salary and unused leave. Every step of the sum is shown.
Your estimate
Enter your basic salary and dates.
How it is worked out
of your current basic pay for each of your first five years.
of your current basic pay for each year after the fifth.
of wage is the most it can be. Part years count in proportion.
You get it after one full year of service in the private sector, whether you resign or are let go. A day of pay is your monthly basic divided by 30. It must be paid within 14 days of your contract ending.
An example
Basic salary of AED 10,000 a month on the day you leave, seven and a half years of service.
- One day of basic pay: AED 10,000 ÷ 30 = AED 333.33
- First five years: 5 × 21 days × AED 333.33 = AED 35,000
- The next two and a half years: 2.5 × 30 days × AED 333.33 = AED 25,000
- Gratuity: AED 60,000
Your current basic salary decides everything
Gratuity is worked out on the basic salary you are on when you leave, for every year you worked, including the years when you earned less. If your basic was AED 8,000 when you joined and is AED 12,000 today, all your years are paid at AED 12,000. A rise in basic before you go raises the whole amount; a cut lowers it.
Only the basic wage in your employment contract counts. Housing, transport and other allowances, bonuses and commission are left out, so if your basic is half of your pay, your gratuity is half of what total pay would give. Not sure of the figure? See where to find your registered contract.
Who this works for
- Foreign employees of private companies under the UAE labour law, on the mainland and in most free zones.
- Full-time jobs with one year of service or more.
- Whether you resign or your employer ends the contract.
- DIFC and ADGM employers.
- Part-time and job-share contracts: in proportion to your hours.
- Employers in the voluntary Savings Scheme, for the time since they joined.
- UAE nationals, government jobs and domestic workers.
If your employer’s figure is different
- Basic, not total. Check that both of you used the basic wage in your contract.
- Unpaid leave. Days of unpaid absence are taken out of your service.
- Deductions. The employer may take off money you owe, such as a salary advance or a company loan. Ask for each one in writing.
- The daily rate. Most calculations divide the monthly basic by 30. A few payroll systems divide a year of basic pay by 365, which gives about 1.4% less.
Ask for the calculation in writing before you sign anything. How to check your final settlement before you sign.
Questions people ask
What is gratuity in the UAE?
End-of-service gratuity is a lump sum that private-sector employers must pay foreign employees who leave after at least one year of continuous service. It is separate from your final salary and from pay for unused leave.
How is gratuity calculated in the UAE?
21 days of your current basic salary for each of the first five years of service and 30 days for each year after that, with part years counted in proportion. A day’s pay is your monthly basic salary divided by 30. The total can’t be more than two years’ wage.
Which salary is used: my current one or the one I started on?
Your current one: the basic salary you are on when you leave. Every year of service is paid at that last figure, even the years when you earned less.
Is gratuity based on basic or total salary?
Basic. Only the basic wage in your employment contract counts, without housing, transport or other allowances, bonuses or commission.
Do I get gratuity if I worked less than a year?
No. Gratuity starts once you complete one full year of continuous service. After that, every extra day counts in proportion.
Does resigning reduce gratuity?
Not under the current law (Federal Decree-Law 33 of 2021). The one-third and two-thirds cuts you may read about come from the old 1980 labour law.
Does unpaid leave change it?
Yes. Days of unpaid absence are left out of your length of service, so enter them above. Paid leave counts as service.
Is there a maximum?
Yes: two years’ wage. It only comes into play after about 25 years with the same employer. This calculator applies the stricter reading, 24 months of basic pay.
How is it calculated for part-time work?
In proportion to the hours in your contract compared with a full-time job, under Article 30 of the law’s Executive Regulations. This calculator is for full-time jobs, so a part-time result will be lower.
When must my employer pay gratuity?
Within 14 days of your contract ending, together with all your other dues. Your employer may deduct money you actually owe.
Does this calculator work for DIFC, ADGM or government jobs?
No. DIFC and ADGM employers follow their own employment rules and end-of-service schemes, and government jobs follow separate rules. UAE nationals are covered by the pension system instead.
Sources · checked 10 November 2026
Official: UAE Labour Law, Federal Decree-Law 33 of 2021 (Article 51) · UAE government portal: end-of-service benefits
Checked against: Gulf News: UAE gratuity calculation guide 2026 · DLA Piper: the new labour law
An estimate, not legal advice. Something out of date?
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