UAE

UAE End of Service Gratuity Calculator

Calculate your end-of-service gratuity under UAE Labour Law using your basic salary and years of service.

📅 Last updated: July 5, 2026 · Reviewed by the MyCalcKit Editorial Team

What this calculator does

Calculates your end-of-service gratuity lump sum under UAE Labour Law, based on your basic monthly salary and total years of continuous service.

Who this is for

Expatriate private-sector employees in the UAE planning a resignation or nearing the end of a contract, or anyone estimating their gratuity entitlement as part of broader financial planning.

How this calculator works

The UAE has no personal income tax — instead, the country's main mandatory end-of-employment financial calculation is gratuity, a lump-sum payment private-sector employers owe expatriate employees under Article 51 of Federal Decree-Law No. 33 of 2021. Employees who complete at least one year of continuous service earn 21 days of basic salary for each of their first five years, then 30 days of basic salary for each year beyond five. Since the 2022 law reform, the calculation is identical whether you resign or are terminated, as long as you've completed one full year.

Based on basic salary only — excludes housing, transport, and other allowances, bonuses, and commissions. Total gratuity is capped at two years' worth of basic salary. Free zones like DIFC and ADGM have their own separate schemes (DIFC uses DEWS). UAE nationals are covered by GPSSA pension rules instead of gratuity. Source: UAE Federal Decree-Law No. 33 of 2021, Article 51.

Worked example

AED 10,000 basic monthly salary, 7 years of service: daily rate = 10,000 ÷ 30 = AED 333.33. First 5 years at 21 days/year: 105 days × 333.33 = AED 35,000. Remaining 2 years at 30 days/year: 60 days × 333.33 = AED 20,000. Total gratuity = 35,000 + 20,000 = AED 55,000.

Gratuity growth by year of service

Run the calculator above to see how your gratuity accrues year by year.

Common mistakes

  • Using gross salary instead of basic salary. This is the single most common and costly gratuity mistake — only your basic salary counts, not housing or transport allowances.
  • Forgetting the one-year minimum. No gratuity at all is payable if you leave before completing one full year of continuous service, with no partial exception.
  • Missing the two-year salary cap. No matter how long you've worked, total gratuity cannot exceed two years' worth of basic salary.
  • Assuming free zone employees follow the same rules. DIFC and ADGM operate separate end-of-service schemes (DIFC uses the DEWS savings plan) rather than the standard Federal Labour Law gratuity calculation — check your specific employment jurisdiction.

What to do next

Frequently Asked Questions

Do DIFC or free zone employees use this same calculation?

No — DIFC uses its own DEWS (DIFC Employee Workplace Savings) scheme, and other free zones may have separate arrangements. This calculator applies to standard UAE Federal Labour Law gratuity, which covers most mainland private-sector employees.

Do I get gratuity if I resign?

Yes. Since the 2022 UAE Labour Law reform, gratuity entitlement is the same whether you resign or are terminated, provided you have completed at least one year of continuous service.

Is gratuity based on basic salary or total salary?

Basic salary only. Housing, transport, and other allowances, plus bonuses and commissions, are excluded from the calculation.

Is there a maximum gratuity amount?

Yes, total gratuity cannot exceed two years' worth of basic salary, regardless of how many years you worked.