Can I Resign in Limited Contract? Labour Law | Rights | Obligations
In the UAE, many employment contracts are limited, meaning they have a fixed end date. This is often tied to the duration of your residency visa (typically 2-3 years).
Read guideTo calculate gratuity online in the UAE, enter your last basic salary and service dates. The calculator divides basic salary by 30, applies 21 days per year for the first five years and 30 days per year after, then caps the total at two years of basic salary.
Gratuity is the lump sum your employer owes you when your job in the UAE ends, and it grows with every month you stay. We built this online gratuity calculator UAE employees can use in seconds, with the current law already applied, so you get a clear number before you talk to HR.
The benefits are simple. You skip the tiered arithmetic, you avoid rules that no longer apply, and you walk away with a breakdown you can print. People use it before resigning, after a termination letter, while checking a final settlement, and when comparing two leaving dates.
The final gratuity amount rests on four parts: your last basic salary, your total continuous service, the 21 and 30 day rates, and the two year cap. This UAE gratuity calculator 2026 version follows Federal Decree-Law No. 33 of 2021 as amended, the law the Ministry of Human Resources and Emiratisation (MOHRE) enforces today.
Disclaimer
Our gratuity calculator is a helpful tool, not a legal one. It estimates your gratuity based on UAE labor laws and the details you provide. Factors like compensation during your tenure, employment agreement terms, or incomplete information can affect the results.
The calculator is not liable for errors and should not be used for legal purposes. For legal matters, we recommend consulting a lawyer.
What Our Online Gratuity Calculator UAE Does
Gratuity is the end of service benefit (EOSB) set by Article 51 of Federal Decree-Law No. 33 of 2021. In Arabic, gratuity is called مكافأة نهاية الخدمة. Any expatriate full-time worker in the private sector in UAE earns it after one year of continuous service.
Our tool is an end of service calculator built on that article. You enter your basic salary, dates and unpaid leave, and it returns your daily wage, eligible days, service length and total gratuity, with the formula shown line by line.
People often search for a MOHRE gratuity calculator. Ours is an independent tool, and it applies the same rules MOHRE uses when it reviews a claim. Treat the result as a close estimate, not a legal ruling.
Why Use an Online Gratuity Calculator Instead of Manual Formulas
Calculating gratuity manually goes wrong in the details. Two rate tiers, partial years, unpaid leave and old contract rules all change the answer, and one wrong assumption can cost you thousands of dirhams.
There are 6 main reasons to use our calculator instead of a spreadsheet:
- It removes the tiered 21 and 30 day arithmetic. The tool splits your service at the five year mark for you.
- It applies the current law, not pre-2023 rules. Old resignation cuts and contract splits are gone from the formula.
- It deducts your unpaid leave days. Those days shorten your service before any rate is applied, and missing them is the error that most often moves a result.
- It shows a breakdown you can take to HR. Every figure comes with the line that produced it.
- It catches wrong dates and empty fields. An end date before your start date, or a missing salary, stops the calculation before it misleads you.
- It produces a downloadable record. The PDF keeps your inputs and result together.
The result is an estimate. Your employer may hold records we cannot see, such as a loan balance or a registered start date that differs from your first day, so use the figure to open a conversation with HR, not to close one.
How to Use Our Online UAE Gratuity Calculator
To use the UAE Gratuity Calculator, fill in the fields, press calculate, and read the breakdown. Each field below explains what to type and why the law makes it matter.
Enter Your Last Basic Salary, Not Your Gross Salary
Enter the basic salary line from your contract, not your total package. The law defines basic wage as the wage in your contract without any allowances or benefits in kind, and Article 51 calculates gratuity on your last basic wage.
Here is the difference in practice. A package of AED 12,000 with a basic salary line of AED 6,000 produces gratuity on AED 6,000. Housing, transport, commission and every other allowance are left out.
This single field moves the result more than any other. Entering gross salary can double your estimate and set you up for a dispute you cannot win.
Enter Your Joining Date and Last Working Day
Enter your exact joining date and your last working day, not rounded years. The law pays gratuity for parts of a year in proportion to the time worked, once you complete one year of continuous service.
A person with 3 years and 7 months of service is paid for 3.58 years, not 3. Dropping the 7 months would understate the gratuity. The law counts a year as 365 days and a month as 30 days, and the calculator follows the same convention.
Use the start date registered with MOHRE, not the day you landed in the country or the day you first sat at your desk. Where an employer registered the contract late, the registered date is the one your service is measured from, and the gap comes out of your gratuity.
Enter Your Unpaid Leave Days
Enter the total days of unpaid leave and unauthorised absence across your whole service. The law removes these days before any rate is applied, so they shorten the service period the calculation runs on.
This field decides more results than most people expect. A run of unpaid days taken years ago can drop you under the five year mark and cost you the 30 day rate for every year after it.
Leave the field at zero if you took none. Paid annual leave, paid sick leave and maternity leave do not belong here, because those days still count as service.
Select Your Contract Type
Select limited or unlimited, based on what your records show. Under the current federal law, contract type no longer changes the amount of gratuity.
We kept the field because many people still hold older unlimited contracts on paper or in their memory of the job. Selecting either option returns the same figure for any service ending today.
Select Whether You Resigned or Were Terminated
Select resigned or terminated. Under current law this choice does not reduce your gratuity once you pass one year of service.
Many people still believe resigning cuts the payment to one third or two thirds. That rule came from the repealed 1980 labour law. Today a resignation after one year pays the full 21 and 30 day rates, the same as a termination.
Read the Calculation Breakdown
The breakdown shows 5 lines: your service period after unpaid leave, your daily wage, your eligible days, the split between the first five years and later years, and the cap check. Daily wage is your basic salary divided by 30.
Eligible days are 21 per year up to five years and 30 per year after that. The cap check compares your total against two years of basic salary, and the tool trims the figure if it goes over.
Compare Scenarios Before You Resign
Change the end date and recalculate to see what staying longer is worth. The five year mark matters most, because each year after it earns 30 days instead of 21.
Someone on AED 10,000 basic earns AED 7,000 for each of the first five years and AED 10,000 for each year after that. Moving your last day past the fifth anniversary raises what every extra month is worth by 43%.
Download Your Gratuity Report as a PDF
Download the PDF once you are happy with the inputs. It lists your salary, dates, unpaid leave, daily wage, eligible days and total, which is the document to attach to an HR query or a MOHRE complaint.
A written breakdown turns a vague disagreement into a specific one. HR can point to the exact line they dispute, and so can you.
Can this Gratuity calculator UAE be Used for any Emirate in UAE
Yes. The calculator works for private sector employees in all 7 emirates, which are Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. Federal Decree-Law No. 33 of 2021 applies to the private sector across the whole country, so the formula is the same in every emirate.
It works for most free zones too, including JAFZA, DMCC and RAKEZ, because they apply the federal labour law to gratuity. The exceptions are the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), which run their own employment laws.
The federal law excludes 3 groups entirely: government employees, members of the armed forces and police, and domestic workers. UAE nationals receive end of service benefits under the pension and social security law, not this formula.
Use the tool above to calculate gratuity UAE private sector employees earn under Article 51, wherever in the country your employer is registered.
How to Calculate Gratuity in UAE?
Under Article 51 of Federal Decree-Law No. 33 of 2021, the UAE calculates gratuity based on your final basic wage, granting 21 days of pay for each of the first five years of service and 30 days of pay for every year after that. The total payout cannot exceed the equivalent of two years of your basic salary.
The foundation of the entire calculation is your daily wage. To find this, the law dictates that you must divide your monthly basic salary by 30. This fixed denominator applies regardless of how many days are in the current month. Once you have your daily basic wage, you multiply it by the number of days you are entitled to based on your total years of service.
The formula
Daily basic wage = Monthly basic salary ÷ 30
Gratuity = Daily basic wage × Days of pay earned
A critical boundary to understand is the definition of basic salary. Under Article 1 of Federal Decree-Law No. 33 of 2021, your basic salary excludes:
- Housing allowances
- Transport allowances
- Utility stipends
- Bonuses
The most common error employees make is calculating gratuity using their gross salary. If your total salary is AED 15,000, but AED 5,000 is for housing and transport, your gratuity is calculated strictly on the AED 10,000 basic portion.
The accumulation of gratuity days splits at the five year mark:
21 daysYears 1 through 5: You earn 21 days of basic pay per year.
30 daysYear 6 onward: From day one of your sixth year, your entitlement increases to 30 days of basic pay per year.
24 monthsMaximum ceiling: Under Article 51 of the Labor Law, no matter how many decades you work for a single employer, your final gratuity payment can never exceed the total value of 24 months of your final basic wage.
Furthermore, partial years are pro-rated, not rounded up. Some outdated competitor calculators still round six months up to a full year, which was a convention under much older legal frameworks. The current MOHRE system calculates your service accurately to the day.
The 21 and 30 Day Gratuity Calculation Formula
How is gratuity calculated in the UAE? On your last basic salary, at 21 days per year for the first five years and 30 days for each year after that.
The gratuity calculation UAE law sets out runs in 4 steps, and here is how to calculate end of service in UAE by hand:
- Find your last basic monthly salary. Take it from your contract or latest payslip, without allowances.
- Work out your daily wage. Daily wage = basic salary ÷ 30.
- Multiply by the days earned. For the first five years, multiply daily wage × 21 × years. For every year beyond five, multiply daily wage × 30 × each additional year.
- Check the total against the two year cap. If the total exceeds 24 months of basic salary, the cap applies.
Partial years count pro rata once you pass one year. Six months of extra service earns half a year of the relevant rate, so 10.5 days in the first five years or 15 days after.
| Service length | Days earned per year | Entitlement |
|---|---|---|
| Under 1 year | 0 | No gratuity |
| 1 to 5 years | 21 days of basic salary | Daily wage × 21 × years, pro rata for partial years |
| Over 5 years | 21 days for years 1 to 5, then 30 days | Daily wage × 21 × 5, plus daily wage × 30 × years after five |
Gratuity Calculation Examples
Here are 3 worked examples on a basic salary of AED 8,000. The daily wage in each case is AED 8,000 ÷ 30 = AED 266.67.
For 3 Years at AED 8,000
Three years at AED 8,000 basic earns AED 16,800 in gratuity.
Daily wage: 8,000 ÷ 30 = AED 266.67
Days earned: 21 × 3 = 63 days
Gratuity: 266.67 × 63 = AED 16,800
Cap check: two years of basic salary is AED 192,000, so no cap applies
For 6 Years at AED 8,000
Six years at AED 8,000 basic earns AED 36,000 in gratuity.
Daily wage: 8,000 ÷ 30 = AED 266.67
First five years: 266.67 × 21 × 5 = AED 28,000
Sixth year: 266.67 × 30 × 1 = AED 8,000
Total: 28,000 + 8,000 = AED 36,000, well under the AED 192,000 cap
Now take the same salary with 6 years and 6 months of service. The extra six months earn half of the 30 day rate: 266.67 × 30 × 0.5 = AED 4,000. The total becomes AED 40,000, and rounding down to six whole years would have lost that AED 4,000.
Who Is Eligible for Gratuity in the UAE
You are eligible for gratuity in the UAE if you are an expatriate full-time private sector employee with at least one year of continuous service.
There are 8 conditions that decide whether you qualify and how much you receive:
- At least one year of continuous service with the same employer. Leave before 12 months and no gratuity is due.
- Calculation on last basic salary only. Allowances do not count.
- Expatriate private sector employment. UAE nationals receive end of service benefits under pension and social security law.
- Dismissal for gross misconduct does not cancel gratuity. The current law lets an employer dismiss without notice under Article 44, but the gratuity stays payable. Only the repealed 1980 law took it away.
- Days of unpaid absence do not count toward the service period. They are deducted before the calculation.
- Leaving without serving notice does not cancel gratuity. The notice pay you owe your employer can be deducted from it.
- Part-time employment earns a pro-rata entitlement. Article 30 of Cabinet Resolution No. 1 of 2022 divides your contracted hours per year by the hours in a full-time contract per year, then applies that percentage to the full-time gratuity.
- Legal heirs receive the gratuity if an employee dies after one year of service. Article 15 requires the employer to pay it to the family within 10 days of the death, or of learning about it.
Domestic workers such as housemaids, drivers and nannies fall under a separate law, Federal Decree-Law No. 9 of 2022. Article 22 of that law leaves the gratuity calculation to a Cabinet decision, and the executive regulation issued under it, Cabinet Resolution No. 106 of 2022, does not set one. The 14 day figure you will see quoted across the web comes from the repealed Federal Law No. 10 of 2017, so check what your own contract says rather than relying on it.
What does Limited and Unlimited Contracts After the 2023 Reform change in Gratuity
Limited and unlimited contracts no longer change your gratuity. The new labour law took effect on 2 February 2022, and employers had until 31 December 2023 to move every worker onto a fixed-term contract. Since then, one formula applies to everyone.
Fixed-Term Contracts Are Now the Only Standard Contract
Every private sector employment contract is now a fixed-term contract under Article 8 of the Decree-Law. It can be renewed as many times as both sides agree.
The original law limited a contract to three years. A later amendment removed that ceiling, so employers and employees can now agree any fixed term.
What Changed for Employees Still Thinking in Unlimited Contract Terms
The one third and two thirds resignation reductions were abolished. Under the old 1980 law, a person on an unlimited contract who resigned between one and three years received one third of the gratuity, and between three and five years received two thirds.
Those bands are history. For any service ending today, resignation after one year pays the full rate, and the old table matters only if you are checking a settlement from before the change.
Renewed Contracts Count as Continuous Service Under Article 8
A renewed contract extends your original service. Article 8 states that any renewal or extension is added to the original period when your continuous service is calculated.
Two years plus a three year renewal is five years of service, not two separate calculations. If you keep working after a contract expires without signing a new one, the law treats the old contract as extended on the same terms.
How Gratuity in UAE Differs on Resignation and Termination
Under current law, gratuity on resignation and termination is identical once you pass one year of service. The table below shows the old rules for readers checking service from before the change.
| Service duration | Current entitlement (resignation or termination) | Pre-2023 resignation entitlement (unlimited contract) |
|---|---|---|
| Under 1 year | None | None |
| 1 to 3 years | 21 days per year | One third of 21 days per year |
| 3 to 5 years | 21 days per year | Two thirds of 21 days per year |
| Over 5 years | 21 days per year for years 1 to 5, then 30 days per year | Full 21 days, then 30 days per year |
Under the old law, a person on a limited contract who resigned before the contract ended, with less than five years of service, could lose gratuity entirely. That rule no longer applies.
Is there any Maximum Limit on Gratuity Payments In UAE
Yes. Total gratuity cannot exceed two years of basic salary under Article 51(6) of the Decree-Law. On AED 10,000 basic, the ceiling is AED 240,000.
Most people never reach it. The first five years earn 3.5 months of basic salary and each later year adds one month, so the cap only bites after 25.5 years with the same employer.
ADGM is the exception. Its Employment Regulations 2024 removed the two year cap for employees under that regime.
Which Service Periods Do Not Count Toward Gratuity in UAE
Unpaid periods do not count toward gratuity. Article 51(4) excludes days of absence without pay, and Article 33 excludes approved unpaid leave from your service period.
Unpaid Leave Is Deducted From Your Service Period
Unpaid leave shortens your service before the calculation starts. The Decree-Law and its Executive Regulation, Cabinet Resolution No. 1 of 2022, apply this to approved unpaid leave and to unauthorised absence.
The sharpest case is the first year. A person who works a full 12 months but takes 15 days of unpaid leave has 350 countable days, which is under one year, so no gratuity is due at all. Fifteen days can cost an entire entitlement.
It matters again at the five year mark. Five years of employment is 1,825 days. Take 60 unpaid days in that time and your service falls to 1,765 days, roughly four years and ten months, which drops you below the threshold for the 30 day rate.
Probation Counts Only If You Stay Past It
Probation counts toward gratuity if you pass it and stay with the same employer. Article 9 adds the probation period to your total service once the contract continues.
Leave during probation and there is no entitlement, because probation lasts six months at most and gratuity needs a full year.
Approved Breaks and Article 51
Approved paid leave does not reduce gratuity. Article 51 only removes days without pay, so paid annual leave, paid sick leave and maternity leave all count as service.
Two limits apply. Sick leave beyond the first 45 paid days is unpaid and does not count, and the extra 45 unpaid days a mother can take after maternity leave for a pregnancy-related illness are excluded under Article 30.
How Free Zone and Savings Scheme Employees Are Calculated Differently
Free zone employees in DIFC and ADGM, and workers enrolled in the federal savings scheme, are calculated differently. Everyone else in a free zone uses the standard federal formula.
- DIFC
-
DIFC Employees Are Covered by DEWS, Not Gratuity
DIFC employees receive monthly savings contributions instead of a lump sum. Since 1 February 2020, DIFC employers pay into the DIFC Employee Workplace Savings (DEWS) plan under DIFC Employment Law No. 2 of 2019.
The minimum employer contribution is 5.83% of monthly basic salary for the first five years and 8.33% after that. Gratuity earned before February 2020 is handled separately, so check any older balance with HR.
- ADGM
-
ADGM Employees May Be Under a Pension or Savings Scheme
ADGM employees receive gratuity by default, with an option to swap it for a pension or savings scheme. The ADGM Employment Regulations 2024 took effect on 1 April 2025.
An employer can offer the scheme, and the employee must confirm the choice in writing. ADGM gratuity is payable whatever the reason for termination, has no two year cap, and must be paid within 21 calendar days.
- JAFZA · RAKEZ · DMCC
-
JAFZA, RAKEZ and Most Other Free Zones Follow Mainland Rules
JAFZA, RAKEZ, DMCC, DAFZA and other non-financial free zones apply the federal gratuity rules. Employees there earn the same 21 and 30 day rates with the same two year cap.
The free zone authority issues your permit and contract, but that does not change the law behind your gratuity. Our calculator gives the right estimate for these employees. For JAFZA specifics, see our dedicated JAFZA end-of-service guide.
- Savings scheme
-
The Voluntary Alternative End-of-Service Savings Scheme
The Savings Scheme replaces the lump sum with monthly employer contributions for the period you are enrolled. It was set up under Cabinet Resolution No. 96 of 2023 and is open to private sector employers, including those in free zones.
Enrolled employers pay 5.83% of monthly basic salary for employees under five years of service and 8.33% after that into an approved investment fund. Gratuity earned before enrolment is calculated under the normal formula and stays payable, so your calculator result covers that earlier period.
How the 14 Day Deadline affect Gratuity Payment in UAE
Your employer must pay your gratuity within 14 days of your contract ending. Article 53 sets the same deadline for your final wages and every other entitlement.
What Happens If Your Employer Does Not Pay
An employer who misses the deadline faces 4 consequences:
- Fines. Violations of the Decree-Law carry fines from AED 5,000 to AED 1,000,000.
- Fines multiplied per worker. The fine applies for each affected employee, up to AED 10 million, and repeat violations within a year can double it.
- MOHRE action. The ministry can decide claims up to AED 50,000 with a binding decision and can impose administrative measures on the establishment.
- Labour court referral. Larger claims, or claims MOHRE cannot settle, go to court.
You have two years from the end of your employment to bring a claim. After that, the case cannot be heard.
How to File a MOHRE Complaint
To file a MOHRE complaint about Gratuity, follow these 4 steps in order:
- Request a written settlement breakdown from HR. Put the request in writing and attach your calculator PDF.
- File through the MOHRE app or portal. Use the MOHRE app or mohre.gov.ae, and keep the reference number.
- Call the MOHRE hotline. The call centre and WhatsApp service run on 600590000.
- Escalate to the labour court if mediation fails. MOHRE refers the case, and claims up to AED 100,000 carry no court fees.
When Gratuity Can Be Denied in UAE
Gratuity can be denied in UAE on very narrow grounds. The main one is service of less than one year with the same employer. Temporary work lasting under a year earns nothing either.
Dismissal for gross misconduct is not a ground for denial under the current law. Article 39 lists dismissal as a penalty while preserving the right to gratuity, and Article 44 dismissals follow the same rule.
Lawful deductions reduce the payment but do not deny it. Article 51(7) lets an employer deduct amounts you owe by law or court judgment, and Article 25 allows loan recovery with your written consent.
Some deductions are not lawful at all. Recruitment and employment costs sit with the employer under Article 6, so visa fees, permit fees, medical testing and Emirates ID costs cannot be charged back to you or taken out of your settlement. Training your employer chose to provide is their cost too, unless you signed a separate written agreement covering it before the training began. An employer who withholds part of your gratuity for any of these is making an unlawful deduction, and MOHRE treats it as one.
How Gratuity fits Within Your Full and Final Settlement
Gratuity in UAE is one part of your full and final settlement, not the whole of it. Here is the final settlement calculation in one line:
Final settlement
Unpaid salary + unused annual leave + gratuity + notice pay + bonuses or commissions due − deductions for loans and advances
- Unpaid salary. Wages for days worked in your final month.
- Unused annual leave encashment. Article 29 pays you for leave days you did not take.
- Gratuity. The figure from our calculator.
- Notice pay. Owed to you if your employer ends the contract without giving the notice period in your contract.
- Bonuses or commissions due. Whatever your contract says is earned by your last day.
- Deductions. Loans, salary advances and notice pay you owe for leaving early.
Unused annual leave is a separate entitlement and is not part of the gratuity calculation. A UAE settlement calculator should list it on its own line, and so should your HR statement.
Involuntary Loss of Employment (ILOE) insurance sits outside the settlement altogether. If you were made redundant and you claim on the scheme, the payment comes from the insurer, not your employer, and it does not reduce the gratuity your employer owes you. Treat them as two separate claims.
Common Mistakes to Avoid When Calculating Gratuity in UAE
The most common mistakes in a gratuity calculation in UAE come from old rules and wrong inputs. There are 8 to avoid:
- Using gross salary instead of basic salaryAllowances never count.
- Entering whole years and dropping the partial monthsPartial years are paid pro rata after year one.
- Not knowing your registered contract typeCheck the version on the MOHRE record, not a file at home.
- Applying pre-2023 resignation reductionsThe one third and two thirds cuts are gone.
- Confusing resignation and termination provisionsBoth pay the same gratuity after one year.
- Forgetting that unpaid leave shortens your service periodFifteen unpaid days in your first year can cost you the entitlement entirely.
- Assuming free zone rules match mainland rulesDIFC and ADGM differ.
- Ignoring lawful deductionsLoans and advances come off the total, though visa and recruitment costs never should.
Our Tips to Protect and Maximise Your Gratuity
You protect your gratuity by checking your records early and keeping proof.
Here are 10 tips to protect and maximise your gratuity:
- Check the basic salary line in your contract. The headline package does not set your gratuity.
- Confirm your registered contract in the MOHRE app. Compare the registered start date with your real first day, because a late registration shortens the service your gratuity is measured on, and raise any gap with HR while you still work there.
- Keep your contracts, payslips, labour card and joining letters. These prove your dates and salary.
- Calculate before you resign. Let the number inform the decision.
- Serve your full notice period. Unserved notice becomes a deduction.
- Request an end of service statement. Ask for an itemised breakdown showing basic salary, exact service days and the calculation, and verify the service dates your employer recorded.
- Get written clearance on loans and advances. Do it before your last day.
- Do not sign a receipt before the money arrives. Signing a settlement acknowledgement or a cancellation form closes your claim, so wait until the funds clear your account.
- Raise discrepancies with HR in writing. Do this before escalating to MOHRE.
- Seek a labour lawyer if payment is refused. Do it well within the two year claim window.
Gratuity vs Tip in the UAE
Gratuity and tip mean different things in the UAE. Gratuity is a legal end of service payment from employer to employee. A tip is an optional amount a customer leaves for good service, usually at a restaurant, salon or hotel.
The word causes confusion because gratuity means tip in many countries. On a UAE payslip or contract, it always means the end of service benefit.
| Question | Gratuity | Tip |
|---|---|---|
| Who pays | Your employer | A customer |
| Is it mandatory | Yes, after one year of service | No |
| How the amount is set | Law: 21 or 30 days of basic salary per year | The customer decides |
Frequently Asked Questions About UAE Gratuity
Is gratuity taxable in the UAE?
No. The UAE does not levy personal income tax, so you receive your gratuity in full. Tax in your home country is a separate question for your own tax adviser.
What is the maximum gratuity limit?
The maximum gratuity limit is two years of basic salary. On AED 15,000 basic, that is AED 360,000.
Can gratuity be paid in advance?
No, the law does not give you a right to an advance. Gratuity falls due when your service ends. If your employer agrees to pay part early, get the terms in writing, because amounts you owe can be deducted from the final payment.
Can employers deny gratuity?
No, not after one year of continuous service. The only common exclusion is service under one year. Misconduct dismissal does not cancel it, but lawful deductions can reduce it.
When must gratuity be paid?
Gratuity must be paid within 14 days of your contract ending, under Article 53. For a worker who dies, the family must be paid within 10 days.
How does the 20 percent gratuity work?
There is no 20 percent gratuity rule for employees in the UAE. The figure usually comes from restaurant tipping habits abroad. The only 20% in the wage rules is the ceiling on deductions to recover salary your employer overpaid.
Can gratuity be reduced or deducted?
Yes. Your employer can deduct amounts you owe by law or court judgment, such as loans, salary advances and notice pay for leaving early. Unpaid leave reduces the service period the calculation uses.
Can my employer deduct visa or recruitment costs from my gratuity?
No. Article 6 places recruitment and employment costs on the employer, so visa fees, permit fees, medical tests and Emirates ID costs cannot be taken from your settlement. Report it to MOHRE if your employer tries.
What documents do I need to calculate my gratuity?
You need 3 documents: your employment contract showing basic salary, your joining letter or first payslip showing your start date, and your resignation or termination letter showing your last day. A record of unpaid leave helps too.
Does probation count toward gratuity?
Yes, if you pass probation and stay with the same employer. The probation months are added to your total service.
Does unpaid leave reduce my gratuity?
Yes. Days without pay are removed from your service period before the calculation, which lowers your total and can push you below the five year mark. In your first year, 15 unpaid days can leave you under 365 countable days and cancel the entitlement.
How is gratuity calculated for part-time employees?
Part-time gratuity is a percentage of the full-time amount, under Article 30 of Cabinet Resolution No. 1 of 2022. Divide your contracted hours per year by the hours in a full-time contract per year, multiply by 100, and apply that percentage. The full-time figure comes from your employer’s own full-time contract, so ask HR what it is rather than assuming a national standard.
Do domestic workers get the same gratuity?
No. Domestic workers fall under Federal Decree-Law No. 9 of 2022, whose Article 22 leaves the gratuity calculation to a Cabinet decision, and no such decision has set a rate. The 14 days per year quoted on many sites came from the repealed Federal Law No. 10 of 2017. Check your contract terms.
Does ILOE insurance affect my gratuity?
No. Involuntary Loss of Employment cover pays out from the insurance scheme and does not reduce what your employer owes you. They are separate claims.
Does working in a free zone change my gratuity?
Yes in DIFC and ADGM, and no in most other free zones. DIFC uses the DEWS savings plan and ADGM runs its own regulations, while JAFZA, RAKEZ and similar zones use the federal formula.
Can I check my contract type on the MOHRE app?
Yes. The MOHRE app and website let you look up the employment contract registered to you. Check it before you run any MOHRE gratuity calculation or raise a claim.
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Calculate my gratuity