Advocates & Legal Consultants · UAE

gratuity calculator UAE

UAE gratuity is calculated on your basic monthly wage: 21 days’ wage for each of your first five years of service, and 30 days’ wage for each year after that, capped at two years’ total wages. Enter your wage and dates below for your exact figure — or see the formula, a worked example, and a rates table further down this page.

How Is Gratuity Calculated
in the United Arab Emirates?

Gratuity in the UAE runs on two tiers of your basic wage:

21 days’ pay for each of the first five years of service, and 30 days’ pay for each year after that, with the total capped at two years’ wages under Article 51 of Federal Decree-Law No. 33 of 2021.

Confirm Your Basic Wage:
Read it from the payslip or the MOHRE contract, not the offer letter's total package. Housing and transport allowances are excluded.
Work out the daily wage:
Basic monthly wage ÷ 30.
Establish the service period:
From the start date to the last working day, minus any days of unpaid absence.
Apply the first tier:
21 days' wage for each of the first five years of service, pro-rated for a partial year.
Apply the second tier:
30 days' wage for each year of service beyond the fifth, pro-rated for a partial year.
Check the cap:
The total cannot exceed two years' wages, reached at roughly 24 years of service on the 21/30-day tiers, so most exits are nowhere near it.

9 years of service on a basic wage of AED 12,000. First five years: 21 × 5 = 105 days. Remaining four years: 30 × 4 = 120 days. Total 225 days × AED 400 daily wage = AED 90,000.

Worked example

Where is your contract registered?

Article 51 does not apply here

Basic monthly wage — AED, not the total package

From the payslip or MOHRE contract. Housing and transport are excluded.

Start date

Last working day

Unpaid absence — days

Contract

Estimated gratuity

AED 0

Enter your basic wage and two dates to begin.

This is an estimate, not advice.

This calculator gives a general estimate based only on the figures you enter. It cannot account for contract terms, disputed deductions, documents your employer holds, or a court or MOHRE decision on your specific case, and it does not constitute legal advice. Confirm your exact entitlement with our employment team before relying on this figure in a negotiation or claim.

Basis: Article 51, Federal Decree-Law No. 33 of 2021, in force 2 February 2022 — 21 days' basic wage per year for the first five years, 30 days thereafter, capped at two years' wages. Payment is due within 14 days under Article 53. General information, not advice on your contract. Checked 3 September 2026.

Does this not match your settlement offer?

Our employment team reviews settlement statements against payroll evidence. The first conversation is free.

Send us the figures

Examples

UAE End of Service
Gratuity Calculation Examples

After Two Years of Service

With a basic monthly salary of AED 10,000 and two complete qualifying years:

AED 10,000 ÷ 30 × 21 × 2 = AED 14,000

After Nine Years of Service

With a basic monthly salary of AED 12,000 and nine complete qualifying years:

Daily basic wage: AED 12,000 ÷ 30 = AED 400
First five years: 21 × 5 = 105 days
Following four years: 30 × 4 = 120 days
Estimated gratuity: AED 400 × 225 = AED 90,000

The higher rate applies to the four years after the fifth anniversary. It does not retrospectively apply to all nine years.

Gratuity Table Based on AED 10,000 Basic Salary

Completed qualifying service	Days of basic wage	Estimated gratuity
1 year	21	AED 7,000
2 years	42	AED 14,000
3 years	63	AED 21,000
4 years	84	AED 28,000
5 years	105	AED 35,000
6 years	135	AED 45,000
7 years	165	AED 55,000
10 years	255	AED 85,000

These examples assume continuous full-time employment under the standard federal gratuity system, with no unpaid absence, lawful deductions or enhanced contractual benefits.

FAQs

UAE Gratuity Calculator
Frequently Asked Question

Is Gratuity Calculated on Basic Salary or Total Salary?

The service-based calculation uses your last basic wage. Housing, transport and other allowances are excluded from that calculation. For example, if your monthly package is AED 15,000 but your basic salary is AED 10,000, use AED 10,000 when calculating the daily basic wage. The statutory cap is expressed separately as two years’ wages. Article 51

Can I Get Gratuity If I Resign After One Year?

Yes, if you meet the eligibility requirements under the current federal law. Resignation does not itself reduce the standard gratuity entitlement. The old one-third and two-thirds resignation reductions do not apply to an exit governed by the current law. Any lawful notice-related liability must be considered separately. UAE Labour Law

Does Unpaid Leave Reduce My Gratuity?

Yes. Unpaid absence is excluded from the service period used to calculate gratuity. Paid annual leave and paid sick leave count towards service. Check your leave records if your employer’s calculation uses fewer service days than expected. UAE Government guidance

Are Partial Years Included?

Yes, once you have completed the minimum qualifying year. For example, three years and six months of qualifying service is calculated as 3.5 years at the 21-day rate. With a basic monthly salary of AED 10,000, that produces an estimated gratuity of AED 24,500.

Is the Gratuity Calculation Different in Dubai or Abu Dhabi?

The same federal formula applies in Dubai, Abu Dhabi and the other Emirates where the employment is governed by federal labour law. The relevant distinction is the employment regime. DIFC and ADGM employment requires a separate calculation under their own rules.

Do Limited and Unlimited Contracts Have Different Formulas?

The current federal gratuity formula does not use different rates for limited and unlimited contracts.

Current federal law provides for fixed-term employment contracts. Older unlimited-contract documents do not, by themselves, justify applying the repealed resignation reductions. Historical termination claims may require assessment under the law then in force. UAE Labour Law

Is This the Official MOHRE Gratuity Calculator?

No. This is an independent calculator provided by Al Ramsy Advocates & Legal Consultancy. It explains the federal gratuity framework but does not issue a MOHRE decision or a binding settlement figure. You can also consult the Dubai Development Authority’s government calculator.

What If My Employer Uses the UAE Savings Scheme?

Benefits for the enrolled period come from the scheme rather than further accrual under the standard gratuity formula. Gratuity earned before enrolment is preserved separately. Ask your employer for your enrolment date, preserved gratuity amount and fund statement before comparing your benefits with a conventional calculator. MOHRE Savings Scheme guidance