UAE Gratuity Calculator
Quickly calculate your end-of-service benefits under the latest UAE Labour Law. Accurate calculations for limited contracts, resignation, and termination scenarios.
Exclude all allowances as per UAE Labour Law
Will be subtracted from service period
What is UAE Gratuity? — End of Service Benefits
Gratuity is a statutory end-of-service benefit paid to expatriate employees in the UAE. It serves as a financial thank-you for the years of service provided to an employer. Under the Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), all eligible workers are entitled to this payment upon the termination or completion of their employment contract.
As of 2026, the law applies to all private sector employees, ensuring a unified system for calculating benefits across all emirates, including Dubai, Abu Dhabi, and Sharjah. This benefit is calculated based on your last received basic salary, excluding allowances like housing, transport, or utilities.
UAE Labour Law 2026: Gratuity Calculation Rules
The calculation of gratuity depends on the length of your continuous service. Here are the official rates for employees who have completed at least one year of service:
| Service Period | Calculation Rate | Note |
|---|---|---|
| Less than 1 Year | No Entitlement | Service must exceed 1 year to qualify. |
| 1 to 5 Years | 21 Days of Basic Salary | Per each year of service. |
| More than 5 Years | 30 Days of Basic Salary | For each year exceeding 5 years. |
| Maximum Cap | Total gratuity cannot exceed 2 years' worth of salary. | |
How to Use the UAE Gratuity Calculator
Input your monthly basic salary in AED. Ensure you exclude any allowances like housing or transport.
Choose your exact joining and end dates as per your labor contract or visa cancellation.
Select whether you resigned or your employment was terminated, as this can affect historical contract types.
See your total service days, the rate applied (21 or 30 days), and the final AED amount.
Important Compliance Rules
✅ Updated for 2026: The tool follows the unified UAE Labour Law regarding limited contracts.
- Unpaid Leave: Days of unpaid leave are excluded from the service period calculation.
- Notice Period: Usually included if the employee worked through it.
- DIFC & ADGM: Note that free zones like DIFC have their own separate savings schemes (DEWS).
* This tool is for informational purposes only. For legal matters, consult with MOHRE (Ministry of Human Resources & Emiratisation).
Frequently Asked Questions
Everything you need to know about UAE End of Service
Frequently Asked Questions
Gratuity is calculated based on your last basic salary. For 1-5 years of service, you receive 21 days' salary per year. For service over 5 years, you receive 30 days' salary per year, capped at 2 years' total salary.
No. According to UAE Labour Law, an employee is not entitled to any end-of-service gratuity if they have not completed at least one year of continuous service.
Gratuity is calculated strictly on the 'Basic Salary' specified in your employment contract. It does not include allowances such as housing, transportation, or utilities.
The total gratuity amount paid to an employee cannot exceed the equivalent of two years' worth of their salary.