Free tool, updated for the current UAE Labour Law
UAE gratuity calculator: know your end of service pay
Enter your basic salary, joining date and last working day to estimate your end of service gratuity under UAE law.
Calculate your gratuity
Fill in the details below. The calculation runs on our server using the rules in Federal Decree-Law No. 33 of 2021, and nothing you enter is stored.
How gratuity works in the UAE
The rules below come from the UAE Labour Law for mainland private sector employees.
One year of service
Gratuity starts after one full year of continuous service. Notice period counts as service.
21 days for years 1 to 5
Each of the first five years earns 21 days of basic pay.
30 days after 5 years
Every year beyond five years earns 30 days of basic pay.
Basic salary only
Allowances such as housing and transport are not part of the calculation.
Part years count
After the first year, extra months and days are paid in proportion.
Capped at two years pay
The total gratuity cannot be more than two years of wages.
Daily basic wage = basic monthly salary divided by 30
Gratuity days = (years up to 5 x 21) + (years above 5 x 30)
Gratuity = gratuity days x daily basic wage
Example: a basic salary of AED 7,000 with 7 years of service gives 5 x 21 days plus 2 x 30 days, which is 165 days. At AED 233.33 per day, gratuity is AED 38,500.
What to do next
Whether you are an employee checking your dues or an employer preparing a final settlement, these are the usual steps.
Check your basic salary
Look at your contract or payslip. Gratuity uses basic pay, not the total package.
Confirm your dates
Your service runs from your joining date to your last working day, including notice.
Calculate the amount
Use the calculator above to get an estimate you can check against your settlement.
Ask if something looks wrong
If your settlement does not match, talk to your employer or contact our team.
Need help with final settlements?
We run payroll and end of service calculations for companies across the UAE.
Accurate settlements
Gratuity, leave balance and notice pay calculated correctly for every leaver.
Compliant payroll
Monthly salaries through WPS, with records ready for any inspection.
Support for employers
We prepare the figures and the paperwork so exits stay smooth.
Frequently asked questions
These answers cover the most common questions about end of service pay.
Contact usWho is entitled to end of service gratuity in the UAE?
Expatriate employees in the private sector who complete at least one year of continuous service are entitled to gratuity when their employment ends. UAE and GCC nationals are covered by the pension and social security scheme instead.
How is gratuity calculated?
Gratuity is based on the last basic salary. You get 21 days of basic pay for each of the first five years of service, and 30 days of basic pay for each year after that. Part years are paid in proportion once the first year is complete.
Is gratuity calculated on basic salary or total salary?
On the basic salary only. Housing, transport and other allowances are not included in the calculation.
Do I lose gratuity if I resign?
No. Since the current labour law took effect on 2 February 2022, resignation no longer reduces gratuity. The old rules that cut gratuity by one third or two thirds for employees who resigned were removed.
Is there a maximum gratuity amount?
Yes. Total gratuity cannot be more than two years of wages.
Do unpaid leave days count towards service?
No. Days of absence without pay are not counted as part of the service period.
When must gratuity be paid?
All final entitlements, including gratuity, must be paid within 14 days of the end of the contract.
Does this calculator apply to DIFC and ADGM companies?
No. This calculator follows the UAE mainland law. Employees in DIFC are covered by the DEWS scheme, and ADGM has its own rules. Employers who joined the voluntary savings scheme also follow different arrangements.
Related services
We handle the payroll and HR work behind every settlement.
Payroll ManagementUAE WPS and multi-country payroll
HR OutsourcingEnd-to-end HR management
PRO ServicesVisas and government liaison
This calculator gives an estimate based on the UAE mainland labour law. Free zones such as DIFC and ADGM have their own rules, and companies in the voluntary savings scheme follow different arrangements. For advice on a specific case, speak to our team or a qualified adviser.
Talk to our payroll team
Send us your question about gratuity, final settlements or payroll and we will reply within one working day.
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