Find out what your end-of-service benefits are worth under the current UAE Labor Law (Federal Decree Law No. 33 of 2021), updated as per MOHRE, using our Gratuity Calculator UAE. Your gratuity is calculated under Article 51, also known in Arabic as مكافأة نهاية الخدمة. Enter your basic salary and your joining and last working dates. Get instant results, and download them as a PDF.
Gratuity (مكافأة نهاية الخدمة) is a lump-sum end-of-service payment that an eligible employee may receive from their employer when their employment ends. For eligible full-time foreign workers in the UAE private sector, gratuity is governed by Article 51 of Federal Decree-Law No. 33 of 2021 (UAE Labour Law).
The gratuity amount is calculated based on the employee’s last basic wage and eligible service period. Under the standard formula, an employee receives 21 days of basic wage for each of the first five years of service and 30 days for each year after that, subject to the applicable eligibility rules and the two-year gratuity cap.
Gratuity is also called end-of-service gratuity (EOSG) or end-of-service benefits (EOSB). The exact entitlement can vary based on factors such as the employee’s employment arrangement, service period, and applicable labour rules.
Built around Federal Decree-Law No. 33 of 2021 (which governs the private employment sector across the UAE), our UAE Gratuity Calculator 2026 is a free online tool that helps you estimate the gratuity you’re likely to receive at the end of your employment. Any expatriate full-time worker in the private sector in UAE earns it after one year of continuous service.
We built this online gratuity calculator UAE for employees to use in seconds, with the current law already applied, so you get a clear number before you talk to HR. People often search for a MOHRE gratuity calculator run by UAE authorities. Ours is independent, and it applies the same rules MOHRE uses when it reviews a claim.
You need to input your basic salary (allowances for housing, transport, and any bonuses aren’t a part of the equation), contract details, service duration, reason for leaving, type of sector you worked in, and if you had unpaid leaves in the calculator to figure out your gratuity.
Basically, an online gratuity calculator in the UAE helps you skip the tiered arithmetic and avoid rules that no longer apply. Calculating gratuity manually goes wrong in the details. Two rate tiers, partial years, unpaid leave, and old contract rules all affect the answer, and one wrong assumption can cost you thousands of dirhams.
Thinking of using a spreadsheet? Below are 8 main reasons why our online calculator is a better solution:
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.
Choose a private sector employee if you work full-time on the mainland or in a free zone that follows the federal labor law. Choose a part-time permit holder if you work on a part-time or flexible MOHRE work permit.
Select Limited or Unlimited, then Resigned or Terminated. Under the current law, neither choice changes the amount once you complete one year of service. A resignation after one year pays the same 21 and 30 day rates as a termination. The tool records both choices in your PDF.
This step appears for part-time permit holders. Enter your contracted hours per week and the full-time hours per week at your employer. Article 30 of Cabinet Resolution No. 1 of 2022 applies the ratio between the two as a percentage of the full-time gratuity.
For example, 24 contracted hours against 48 full-time hours gives 50%. Ask HR for the full-time figure if you are not sure. 48 is a common default.
Select Enter dates if you know your exact first and last working days. Use the start date registered with MOHRE. If the contract was registered late, the registered date is the one your service is measured from.
Select Enter duration if you know only the length of service. Enter the years and months. A service of 3 years and 7 months counts as 3.58 years, and the tool pays the partial year in proportion once you pass one year. It counts a year as 365 days and a month as 30 days.
Select Yes under “Had unpaid leave?” and enter the total days of unpaid leave and unauthorised absence across your service. These days are removed from your length of service before any rate is applied.
Paid annual leave, paid sick leave and maternity leave still count as service, so do not enter them. Fifteen unpaid days in your first year leave you under 365 countable days, and no gratuity is due.
Enter your monthly basic salary in AED. Use the basic line from your contract or MOHRE offer letter. Exclude housing, transport, and every other allowance.
A package of AED 12,000 with a basic salary of AED 6,000 produces a gratuity of AED 6,000. This field changes the result more than any other.
Once the form is complete, your estimated gratuity appears in AED. The figure updates as you change any field. Press Calculate My Gratuity to confirm the result before you download it.
Treat the amount as an estimate. Your employer may hold records the calculator cannot see, such as a loan balance or a different registered start date.
Once you are satisfied that you have added the correct inputs, press the calculate gratuity button and download the PDF report. It lists your salary, dates, unpaid leave, daily wage, eligible days, and total gratuity. This is the document you need to attach to an HR query or if filing 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.
For employees covered by the federal UAE Labour Law, gratuity is based on the employee’s last basic wage and length of continuous service.
The calculation uses:
Daily basic wage = Monthly basic salary ÷ 30
Gratuity = Daily basic wage × eligible gratuity days
Partial years are calculated proportionally after the employee completes one year of continuous service.
For example, an employee with AED 8,000 in basic salary has a daily basic wage of AED 266.67. After three complete years, the gratuity calculation is:
AED 266.67 × 21 × 3 = AED 16,800
For six years of service:
The two-year maximum does not affect either example.
Gratuity is calculated from your last basic salary, rather than your total monthly package.
For example, if your monthly package is AED 12,000 and your basic salary is AED 6,000, the gratuity calculation uses AED 6,000.
Allowances and other payments such as these are excluded from the basic wage:
Check your employment contract, MOHRE records, or latest payslip for the basic salary figure used by your employer. Using your gross salary instead of your basic salary can significantly overstate the estimated gratuity.
Your length of continuous service determines which gratuity rate applies.
| Service period | Gratuity entitlement |
|---|---|
| Less than 1 year | No gratuity under the standard federal formula |
| Years 1–5 | 21 days of basic wage per year |
| Year 6 onward | 30 days of basic wage per year |
Partial years are prorated rather than rounded up.
For example, six years and six months of service at an AED 8,000 basic salary produces:
Those additional six months contribute to the final calculation.
For private-sector employees covered by Federal Decree-Law No. 33 of 2021, the standard gratuity formula applies across the UAE.
This includes employees in:
The gratuity calculator works for most free zones too, including Jebel Ali Free Zone Authority (JAFZA), Dubai Multi Commodities Centre (DMCC), and Ras Al Khaimah Economic Zone (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, so employees working in those jurisdictions should use the rules applicable to their employment regime.
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. The gratuity calculator in the UAE above applies Article 51 the same way wherever your employer is registered.
Not every free zone follows exactly the same end-of-service system.
Employees in JAFZA, DMCC, RAKEZ, DAFZA, and other non-financial free zones generally follow the federal gratuity formula where Federal Decree-Law No. 33 of 2021 applies.
That means the standard 21-day and 30-day rates and the two-year maximum generally apply.
For JAFZA-specific information, see our JAFZA Gratuity Rules and Calculator guide.
DIFC has a separate employment framework and uses the DIFC Employee Workplace Savings (DEWS) system for eligible employees rather than the standard federal gratuity arrangement for the relevant period.
Gratuity accrued before the applicable transition period is handled separately.
ADGM operates under its own employment regulations. Its rules can differ from the federal gratuity system, including the treatment of end-of-service benefits and the maximum amount payable.
If you work in ADGM, check which employment and savings arrangement applies to you before using the federal calculator.
The UAE also has a voluntary alternative end-of-service savings scheme. Employers participating in the scheme make monthly contributions to an approved investment fund rather than relying solely on the traditional lump-sum gratuity arrangement for the period covered by the scheme.
Any gratuity earned before enrolment remains subject to the applicable rules for that earlier period.
Below are different examples with calculations on a basic salary of AED 8,000. The daily wage in each case is AED 8,000 ÷ 30 = AED 266.67.
Daily basic wage = Monthly basic salary ÷ 30
Gratuity = Daily basic wage × Days of pay earned
| 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 |
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
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.
The standard federal gratuity rules generally apply to expatriate employees working in the UAE private sector who have completed at least one year of continuous service.
The calculation also depends on the employment arrangement and applicable legislation.
Some groups follow different rules, including:
Part-time employees can receive a pro-rated gratuity entitlement based on their contracted working hours under the applicable rules.
If an employee dies after completing the required period of service, the applicable end-of-service benefit may be payable to their legal heirs.
There are 8 important factors to consider if you qualify for gratuity fund and how much of it you’ll actually get:
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.
No. Contract type does not change the standard gratuity calculation under the current UAE Labour Law. For an eligible full-time foreign worker, Article 51 of Federal Decree-Law No. 33 of 2021 calculates end-of-service gratuity using the employee’s last basic wage and eligible service period: 21 days of basic wage for each of the first five years and 30 days for each year after five years. The total gratuity is capped at two years of basic wage.
The current UAE labor law abolished unlimited employment contracts and replaced them with fixed-term contracts. The law came into force on 2 February 2022, and existing unlimited contracts were required to be converted to fixed-term contracts under the transition provisions. The UAE Government’s current guidance states that private-sector employment contracts are fixed-term.
Therefore, an employee calculating gratuity under the current UAE Labour Law should not apply the old unlimited-contract gratuity reductions to a current calculation. The applicable gratuity formula is based on the last basic wage and eligible length of service, subject to the rules and exceptions in the Labour Law.
Under current law, gratuity on resignation and termination is the same 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.
Yes, under Article 51 of Federal Decree-Law No. 33 of 2021, gratuity under the federal system cannot exceed 24 months of the employee’s basic wage.
For an employee with an AED 10,000 basic salary, the maximum would therefore be AED 240,000.
The cap generally becomes relevant only after many years of continuous service because the first five years are calculated at 21 days per year and subsequent years at 30 days per year.
Different rules may apply under separate employment regimes, such as ADGM. Its employment regulations in 2024 removed the two-year cap for employees under that regime.
Unpaid leave does not count towards gratuity in UAE, and paid leave is included in the service. Probation counts only if you stay past it.
Let’s walk you through what counts and what doesn’t:
Unpaid leave reduces your total service period. This applies to both approved unpaid leave and unauthorised absence.
Why it matters:
Probation counts toward your gratuity if you pass it and stay with the same employer. Leave during probation, and you get nothing, since probation is six months max, and gratuity needs a full year.
Paid annual leave, paid sick leave, and maternity leave all count as service. Only unpaid days are removed.
However, there are two exceptions:
Under Article 53 of the UAE Labour Law, an employer must pay the employee’s outstanding wages and other end-of-service entitlements within 14 days from the end date of the employment contract. This includes gratuity where the employee is eligible for it.
If the amount paid does not match your expected gratuity or final settlement, ask your employer or HR department for an itemised calculation. Compare it with your employment contract, payslips, employment dates, and your own gratuity calculation.
If the issue cannot be resolved directly with the employer, you can raise a labour complaint through MOHRE and follow the applicable dispute-resolution process.
Keep copies of your employment contract, payslips, settlement documents, and written communication about your final payment.
An employer who misses the deadline faces 4 consequences:
Important Note: You have two years from the end of your employment to bring a claim. After that, the case cannot be heard.
If your employer won’t pay your gratuity, here’s what to do:
Gratuity can be denied in the UAE on very narrow grounds.
If you haven’t completed one year of continuous service, you don’t qualify for gratuity under the standard federal formula. The same goes for temporary work lasting under a year: it earns nothing.
Even if you’re dismissed for misconduct, you’re still entitled to your gratuity. Article 39 lists dismissal as a penalty but keeps the right to gratuity intact, and Article 44 dismissals follow the same rule.
Your employer can deduct amounts you legally owe, such as debts confirmed by law or court judgment (Article 51(7)), or loan repayments you agreed to in writing (Article 25). These lower the amount you receive, but they don’t wipe it out.
Recruitment and employment costs are the employer’s responsibility under Article 6. That means visa fees, permit fees, medical testing, and Emirates ID costs cannot be charged back to you or taken from your settlement.
The same applies to any training your employer chose to provide unless you signed a separate written agreement covering it before the training started. For example, amounts legally owed by the employee may be deducted in accordance with the applicable rules.
Recruitment and employment costs that the employer is legally responsible for should not simply be transferred to the employee as a gratuity deduction. If your employer withholds part of your gratuity for any of these, that’s an unlawful deduction, and MOHRE treats it as one. If you believe an unlawful deduction has been made, request the calculation and supporting records in writing.
Gratuity is just one piece of your full and final settlement, not the whole thing. Here’s how the full calculation breaks down:
Unpaid salary + unused annual leave + gratuity + notice pay + bonuses or commissions due − deductions for loans and advances
| Component | What It Covers |
|---|---|
| Unpaid salary | Wages for the days you worked in your final month |
| Unused annual leave | Payment for leave days you didn’t take (Article 29) |
| 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 | Whatever your contract says you’ve earned by your last day |
| Deductions | Loans, salary advances, and notice pay you owe for leaving early |
Most gratuity errors come from two places: outdated rules and wrong numbers. Here are the 8 common mistakes that cost people money, and how to avoid each one.
The best way to protect your gratuity? Start early and keep records. By the time a dispute happens, you’ve already lost leverage.
Here are 10 tips to help you out. We have grouped them according to the time when they matter most.
The takeaway: Protect yourself before there’s a problem. Early records and clear calculations give you the upper hand. Waiting until you’re owed money leaves you chasing it.
The UAE does not currently impose personal income tax on individuals. Tax treatment in another country can depend on that country’s rules, so employees with overseas tax obligations should seek advice from a qualified tax professional.
For employees covered by the federal gratuity system, the maximum is generally 24 months of basic wage.
Termination does not automatically remove gratuity entitlement. Eligibility and the amount depend on the employee’s service, employment arrangement, and the applicable law.
Yes. Applicable unpaid leave and periods of absence without pay can reduce the service period used in the calculation.
Probation can count toward continuous service when the employee continues working for the same employer after probation.
Under the current federal rules, resignation does not trigger the old one-third or two-thirds reductions. Employees who have completed the required service period receive gratuity according to the applicable formula.
It depends on the free zone. JAFZA, DMCC, RAKEZ, and many other non-financial free zones generally follow the federal rules, while DIFC and ADGM have separate employment frameworks.
Part-time gratuity is calculated on a pro-rata basis according to the applicable working-hours rules.
Employment and recruitment costs that the employer is responsible for should not simply be deducted from an employee’s end-of-service settlement. If such an amount has been deducted, request the legal basis and calculation in writing.
No. Involuntary Loss of Employment (ILOE) insurance is separate from the end-of-service gratuity owed by the employer.
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Domestic workers around the globe are often deprived of their rights, with the main reason being their ignorance. Most people are unaware that domestic workers have almost the same rights.
Read guideYou do not need to work through the formula yourself anymore. With our UAE end-of-service gratuity calculator, the task is swift, smooth, and simple.
Enter your basic salary, employment dates, and applicable unpaid leave above to see an estimated gratuity and a clear calculation breakdown. You can download the result as a PDF and keep it with your employment records or use it when discussing your final settlement with HR.
Calculate My Gratuity