UAE Gratuity Calculator: End of Service Benefits
Free UAE gratuity calculator: end of service benefits under the 2021 Labour Law, 21 days of basic salary a year for 5 years, then 30 days, up to 2 years.
Federal Decree-Law No. 33 of 2021 on labour relations, private sector, as on the official UAE government portal. The daily wage is the basic salary divided by 30.
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What it does
In the United Arab Emirates a private sector employee who completes at least one year of continuous service is entitled to an end of service gratuity: 21 days of basic salary for each of the first five years and 30 days for each year after, in proportion for fractions of a year, up to a total of two years of salary. Allowances such as housing and transport are not included, and days of unpaid absence do not count. Since the 2021 Labour Law, resigning no longer reduces the gratuity.
How to use it
- Type your last basic monthly salary, without allowances.
- Type your years, months and days of service and any days of unpaid absence.
- See the days of salary you are owed and the gratuity in dirhams.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How is gratuity calculated in the UAE?
21 days of basic salary per year for the first five years and 30 days per year after. With a basic salary of 10,000 dirhams, one year gives 7,000 dirhams and five years 35,000.
Do I lose gratuity if I resign?
No. Under the 2021 Labour Law the gratuity is the same whether the employee resigns or the employer ends the contract, as long as there is at least one year of service. The employer may deduct amounts the employee owes.
Is the gratuity based on the total salary?
No, only on the last basic salary. Housing, transport, utilities and other allowances are left out, which is why the gratuity is often much lower than people expect.
When must the gratuity be paid?
Within 14 days of the end of the contract, together with outstanding wages and other entitlements. Employers in the voluntary savings scheme pay into an investment fund instead.