UAE · End-of-service benefits · Data research
UAE Gratuity Calculator: what the law actually pays you
Many people believe UAE gratuity is "one month's salary for every year". Applying Article 51 of the labour law shows something smaller: 0.7 of a month's basic salary per year for the first five years, and never anything on your allowances. Calculate your exact amount below. Every result shows its working.
Researched by Nikhil ShrivastavaReviewed by Pending independent reviewLaw last verified 23 October 2026Methodology · Report an error
0.7 monthsof basic salary per year for years 1–5 (21 ÷ 30 days)
8.5 monthsof basic salary after 10 years, not 10
25.5 yearsof service to reach the legal cap of 24 months
14 daysdeadline for your employer to pay after the contract ends
Calculate your UAE gratuity
Private-sector, full-time employees under Federal Decree-Law No. 33 of 2021. Use your basic salary only, without housing, transport or other allowances.
Estimated end-of-service gratuityAED 37,368≈ ₹9,76,065 · 160.151 days of basic wage
How this number was calculated
- Service counted2,496 days − 0 unpaid = 2,496 days (6 yrs 10 mths 6 days) = 6.838 years
- Daily basic wageAED 7,000 ÷ 30 = AED 233.33
- Years 1–5 at 21 daysAED 233.33 × 21 × 5 = AED 24,500
- After year 5 at 30 daysAED 233.33 × 30 × 1.838 = AED 12,868
- Two-year capAED 7,000 × 24 = AED 168,000 → not reached
Estimate only. Your employer may deduct amounts you owe under the law or a court judgment (Article 51(7)), and contracts can give more than the legal minimum. If your employer has moved you to the voluntary savings scheme, or you work in DIFC or ADGM, different rules apply.
How to calculate gratuity in the UAE, step by step
Article 51 of Federal Decree-Law No. 33 of 2021 ↗ sets the rule for full-time foreign workers in the private sector. In plain terms:
- Check you qualify. You need one year or more of continuous service. Unpaid absence days are taken out first.
- Find your daily basic wage. Take your last monthly basic salary and divide by 30. Allowances are excluded.
- Years 1–5: daily wage × 21 × years (up to 5).
- Year 6 onward: daily wage × 30 × each year after the fifth. Part years are paid in proportion.
- Apply the cap: the total cannot be more than 24 months of basic salary.
Worked example: AED 7,000 basic, 7 years of service
Daily wage = 7,000 ÷ 30 = AED 233.33. Years 1–5 = 233.33 × 21 × 5 = AED 24,500. Years 6–7 = 233.33 × 30 × 2 = AED 14,000. Total = AED 38,500, or 5.5 months of basic salary for 7 years. This matches the example published by Gulf News ↗.
Claim vs reality: is gratuity one month per year?
Finding: for the first five years, the law pays 70% of a month's basic salary per year. Only from year six does each year earn a full month of basic. After 10 years an employee has 8.5 months of basic, not 10, and the gap never closes before the 24-month cap.
| Service | Law pays | Belief | Law ÷ belief |
|---|---|---|---|
| 1 year | 0.70 months | 1 months | 70% |
| 3 years | 2.10 months | 3 months | 70% |
| 5 years | 3.50 months | 5 months | 70% |
| 6 years | 4.50 months | 6 months | 75% |
| 10 years | 8.50 months | 10 months | 85% |
| 15 years | 13.50 months | 15 months | 90% |
| 20 years | 18.50 months | 20 months | 93% |
| 25 years | 23.50 months | 25 months | 94% |
| 26 years | 24.00 months | 26 months | 92% |
The gap is larger in take-home terms. Gratuity uses basic salary only. If basic is half of your total package, which is common in UAE offers, five years of service earns 3.5 months of basic, which is 1.75 months of your total monthly pay. Check the basic figure in your contract before you plan around a number.
UAE gratuity table by salary and years of service
Calculated with the same function as the calculator, for full years with no unpaid leave. Amounts in AED.
| Basic salary | 1 yr | 3 yrs | 5 yrs | 7 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs |
|---|---|---|---|---|---|---|---|---|
| AED 3,000 | 2,100 | 6,300 | 10,500 | 16,500 | 25,500 | 40,500 | 55,500 | 70,500 |
| AED 5,000 | 3,500 | 10,500 | 17,500 | 27,500 | 42,500 | 67,500 | 92,500 | 117,500 |
| AED 7,000 | 4,900 | 14,700 | 24,500 | 38,500 | 59,500 | 94,500 | 129,500 | 164,500 |
| AED 10,000 | 7,000 | 21,000 | 35,000 | 55,000 | 85,000 | 135,000 | 185,000 | 235,000 |
| AED 15,000 | 10,500 | 31,500 | 52,500 | 82,500 | 127,500 | 202,500 | 277,500 | 352,500 |
| AED 20,000 | 14,000 | 42,000 | 70,000 | 110,000 | 170,000 | 270,000 | 370,000 | 470,000 |
Download: uae-gratuity-by-salary-and-tenure.csv · uae-gratuity-months-by-tenure.csv (CC BY 4.0, please link to this page)
Resignation, termination and other cases
- Resignation: no reduction under Article 51 once you have one year of service. Older rules that cut gratuity for resignation applied under the 1980 law.
- Termination: same formula. The employer may deduct amounts you owe under the law or a court judgment (Article 51(7)).
- Unpaid leave: removed from the service period before calculating (Article 51(4)).
- Part-time, temporary and flexible work: calculated under Article 30 of Cabinet Resolution No. 1 of 2022, not this calculator.
Who this does not cover
- UAE nationals: covered by pension and social-security law instead (Article 51(1)).
- Voluntary savings scheme: if your employer enrolled you, it settles gratuity up to the enrolment date and pays into a fund after that (u.ae ↗).
- DIFC and ADGM: these financial free zones have their own employment laws.
- Government jobs: follow public-sector HR law.
Methodology and limitations
The calculator applies Article 51 as written: 21 days' basic wage per year for years 1–5, 30 days after, pro rata for part years once one year is complete, unpaid absence excluded and a cap of 24 months' basic wage. Service is counted in calendar days including the first and last day, and divided by 365. The daily wage uses the monthly basic ÷ 30 convention shown in MoHRE guidance and the main UAE explainers. Some employers use basic × 12 ÷ 365, which gives about 1.4% less.
It does not know your contract. A contract can be more generous than the law, and deductions owed to your employer are not modelled. Results are estimates, not legal advice. For disputes, contact MoHRE.
UAE gratuity FAQs
How is gratuity calculated in the UAE?
For private-sector foreign workers, Article 51 of Federal Decree-Law No. 33 of 2021 gives 21 days of basic wage for each of the first five years of service and 30 days for each year after that. Part years are paid in proportion, unpaid absence is not counted, and the total cannot exceed two years' wage. The daily wage is commonly taken as monthly basic ÷ 30.
Is gratuity one month's salary per year in the UAE?
No, not in the first five years. 21 days is 0.7 of a month of basic salary per year. It becomes a full month of basic (30 days) only from year six. And because it is calculated on basic salary, not total salary, it is usually well under one month of take-home pay.
Do I get gratuity if I resign in the UAE?
Yes, if you have completed at least one year of continuous service. Article 51 of the current law contains no reduction for resignation. The reductions some people remember applied to unlimited contracts under the old 1980 labour law.
Do I get gratuity before completing one year?
No. Article 51 requires one year or more of continuous service. After that, part years are paid pro rata, so 3 years and 4 months is paid as 3.33 years.
Is gratuity calculated on basic salary or total salary?
On the last basic wage. Article 1 of the law defines the basic wage as the wage in the contract, excluding allowances and in-kind benefits. Housing, transport and other allowances are not included unless your contract says otherwise.
What is the maximum gratuity in the UAE?
Total gratuity cannot exceed two years' wage, which is 24 months of basic salary. Under the 21/30-day rule, an employee reaches that cap after about 25.5 years of service.
Does unpaid leave reduce gratuity?
Yes. Article 51(4) says unpaid days of absence are not included in the service period, so they shorten the time your gratuity is calculated on.
When must my employer pay gratuity?
Article 53 requires the employer to pay wages and all other entitlements within 14 days of the contract end date. If it is not paid, you can file a labour complaint with MoHRE.
Does this calculator work for DIFC, ADGM or government jobs?
No. It follows the federal private-sector law. DIFC and ADGM have their own employment laws, UAE nationals receive pension benefits instead, and employers in the voluntary end-of-service savings scheme stop the traditional gratuity from the date they enrol you.
Sources
01
End-of-service benefits for employees in the private sector ↗UAE Government portal (u.ae). Official. One year of continuous service, unpaid absence excluded, total capped at two years' wage; voluntary savings scheme. Page updated 6 Oct 2025.
02
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, Articles 51–53 ↗UAE Government portal (u.ae), consolidated text with amendments. Official law text. Article 51: full-time foreign workers with one year of continuous service get 21 days' basic wage per year for the first five years and 30 days per year after, pro rata for part years, capped at two years' wage. Article 53: paid within 14 days.
03
UAE gratuity calculator: what are your end-of-service dues ↗Gulf News. Secondary explainer used to cross-check the ÷30 daily-wage convention and worked examples. Updated 1 Feb 2024.
04
UAE announces private sector gratuity will not include unpaid leave days ↗Arabian Business, reporting MoHRE guidance. Secondary report of MoHRE guidance on unpaid leave and final basic wage.
Changelog
- 23 October 2026 Added UAE termination guide, UAE and India gratuity tables, Saudi and Kuwait resignation guides, and a Hindi India calculator.
- 23 October 2026 Added guides on UAE gratuity on resignation, India gratuity before 5 years and gratuity tax, and calculators for Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.
- 23 October 2026 Pages published. Rules checked against u.ae (updated 6 Oct 2025), the Ministry of Labour Labour Code FAQs and the Code on Social Security, 2020.