UAE Gratuity Calculator

Under Article 51 of UAE Federal Decree-Law No. 33 of 2021, end-of-service gratuity is calculated based on the employee's last basic salary:

• 21 days' basic wage for each year of the first 5 years of service.
• 30 days' basic wage for each additional year beyond 5 years of service.

Daily wage is calculated as Monthly Basic Salary ÷ 30. Partial years of service are calculated on a pro-rata basis.

Example: For a monthly basic salary of AED 15,000 and 6 completed years of eligible service, the daily basic wage is AED 500 (AED 15,000 ÷ 30). Gratuity is 105 days for the first 5 years (5 × 21) plus 30 days for year 6, totaling 135 days × AED 500 = AED 67,500. This is an illustrative calculation assuming continuous eligible service under standard UAE private-sector rules.

A full-time employee must complete at least one continuous year (365 days) of service with the employer to be entitled to end-of-service gratuity.

If the period of service is less than one continuous year, no gratuity is payable. Any days of unpaid absence or leave without pay are deducted from the service calculation.

Yes. Under Article 51(5) of UAE Federal Decree-Law No. 33 of 2021, the total end-of-service gratuity for an employee cannot exceed two years' (24 months') basic salary, regardless of the length of service.

Eligible full-time expatriate employees covered by the UAE federal private-sector labour law (Federal Decree-Law No. 33 of 2021) generally use the same statutory gratuity formula whether employment ends via resignation or employer termination, provided the minimum one-year continuous service condition is met.

Please note that other final settlement amounts—such as notice period pay, unused annual leave encashment, or repatriation expenses—are calculated separately according to the employment contract and circumstance of separation.