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UAE Gratuity Calculator

Updated June 2026 · Based on UAE Labour Law (Federal Decree-Law No. 33 of 2021)

Estimate your end-of-service gratuity (EOSB) under UAE Labour Law. Enter your basic monthly salary and length of service to calculate it instantly.

Use basic salary only — gratuity excludes allowances (housing, transport, etc.).

Quick answer

UAE gratuity (end-of-service benefit, or EOSB) is a lump sum your employer pays when you leave a job, calculated on your basic salary. After one year of service you earn 21 days' basic pay for each of the first five years and 30 days' pay for each year after that, capped at two years' total pay (Federal Decree-Law No. 33 of 2021).

UAE gratuity entitlement at a glance
Length of serviceGratuity entitlement
Less than 1 yearNo gratuity
1 to 5 years21 days' basic pay per year
After 5 years30 days' basic pay per year
Maximum (cap)2 years' total pay
Daily wage basisBasic monthly salary ÷ 30

How is gratuity calculated in the UAE?

Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), end-of-service gratuity is paid on the employee's basic salary and depends on length of continuous service. The calculation is:

  • Less than 1 year: no gratuity is payable.
  • First 5 years: 21 days of basic pay for each year of service.
  • After 5 years: 30 days of basic pay for each additional year.
  • Daily wage: basic monthly salary ÷ 30.
  • Cap: total gratuity cannot exceed 2 years' total pay.

Worked example

An employee with a basic salary of AED 8,000 and 4 years of service receives: 21 days × 4 years = 84 days. Daily wage = 8,000 ÷ 30 = AED 266.67. Gratuity = 84 × 266.67 = AED 22,400.

Important notes

  • Gratuity is based on basic salary only — housing, transport and other allowances are excluded.
  • Since February 2022, employees who resign receive full gratuity (the old reduction rules for unlimited contracts were removed).
  • Days of unpaid absence are not counted toward length of service.
  • This calculator covers full-time contracts. Part-time and other work models are pro-rated by contracted hours (Cabinet Resolution No. 1 of 2022, Art. 30).
  • The employer may deduct any amounts the employee owes from the gratuity, and must pay it within 14 days of contract end.
  • This is an estimate for guidance only — your final entitlement may vary by contract. Source: UAE Government (u.ae).

Frequently asked questions

How is gratuity calculated in the UAE?
On basic salary only. After one full year of service you receive 21 days of basic pay for each of the first 5 years and 30 days for each year after that. The daily wage is basic salary ÷ 30, and the total is capped at 2 years' pay.
Is gratuity calculated on basic or total salary?
Basic salary only. Allowances such as housing, transport and utilities are excluded from the gratuity calculation.
Do I get gratuity if I resign?
Yes. Under the current UAE Labour Law (since February 2022), you receive full gratuity on resignation provided you have completed at least one year of continuous service.
What is the minimum service to get gratuity?
One full year of continuous service. Employees with less than one year are not entitled to gratuity.
Is there a maximum gratuity in the UAE?
Yes — total gratuity is capped at the equivalent of two years' total salary, no matter how long you have worked.

Related UAE calculators

Leaving your job? Combine your gratuity with these to see your full exit package.

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