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GRATUITY / UAE

UAE gratuity calculator (end of service benefits)

Work out your end-of-service gratuity in the UAE under Article 51 of the Labour Law: 21 days' basic wage for each of the first five years, 30 days for each year after, pro rata for part years and capped at two years' wage.

By the CalcBloc teamLast verified

Your details

01Salary

Basic wage only, without housing, transport or other allowances.

02Service

Not counted as service.

End-of-service gratuity

AED 35,000

5 years of service · 105 days' basic wage at AED 333 a day

Days of basic wage
105
Daily basic wage
AED 333.33
Years of service counted
5
Gratuity with the other daily-wage method
AED 34,521
Cap (two years' basic wage)
AED 240,000
  • Article 51 of Federal Decree-Law No. 33 of 2021: after at least one year of continuous service, full-time private-sector employees get 21 days' basic wage for each of the first five years and 30 days' for each year after, in proportion for part years. Days of unpaid absence don't count, and the total can't exceed two years' wage.
  • The law doesn't say how to turn a monthly wage into a daily wage. Choose the method your employer or contract uses; the other method gives AED 34,521 here (daily wage AED 329).
  • Gratuity is calculated on the last basic wage only, without housing, transport or other allowances. UAE nationals are covered by the pension scheme instead; part-time workers get a share in proportion to their hours.

End-of-service gratuity: AED 35,000 5 years of service · 105 days' basic wage at AED 333 a day

How your gratuity is worked out
Show the breakdownAmount
Daily basic wage (basic ÷ 30)AED 333.33
First 5 years × 21 days = 105 daysAED 35,000
GratuityAED 35,000
With the daily wage as basic × 12 ÷ 365AED 34,521

AED 35,000

5 years of service · 105 days' basic wage at AED 333 a day

How it's calculated

Full-time private-sector employees in the UAE who complete at least one year of continuous service are entitled to an end-of-service gratuity when their service ends. Under Article 51 of Federal Decree-Law No. 33 of 2021 it is 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after, in proportion for part years, up to a maximum of two years' wage.u.ae

The formula

Daily wage = monthly basic ÷ 30 (or monthly basic × 12 ÷ 365)

Gratuity = daily wage × (21 × min(years, 5) + 30 × max(years − 5, 0)), capped at 24 months' basic wage

Years of service exclude days of unpaid absence.

Worked example

After 5 years on a basic salary of AED 10,000 a month, the gratuity is AED 35,000: 105 days at AED 333.33 a day.

AED 10,000 basic, 5 yearsGRATUITY / UAE / ARTICLE 51
LineAmount
Daily basic wage (basic ÷ 30)AED 333.33
First 5 years × 21 days = 105 daysAED 35,000
GratuityAED 35,000
With the daily wage as basic × 12 ÷ 365AED 34,521

After 8 years and 6 months on the same basic salary it is AED 70,000, and after 30 years it reaches the cap of AED 240,000.

Assumptions and limitations

  • Basic wage only, as the law requires: allowances are excluded.
  • Daily wage: the law doesn't fix the divisor, so choose ÷ 30 or × 12 ÷ 365 to match your employer.
  • Full-time private-sector employees. Part-time workers get a share in proportion to their hours; UAE nationals are covered by the pension legislation instead (Art. 51(1)), and some free zones have their own employment laws.
  • Deductions: your employer may deduct amounts due under the law or a court judgment (Art. 51(7)); these are not included.
FAQ

Questions people ask

How is gratuity calculated in the UAE?

Under Article 51 of the Labour Law, a full-time private-sector employee who has completed at least one year of continuous service gets 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after that. Part years count in proportion once the first year is complete, and the total can't exceed two years' wage.

Is gratuity calculated on basic salary or total salary?

On the last basic salary only. Article 51 says gratuity is calculated on the last basic wage, so housing, transport, utilities and other allowances are not included. If your basic salary is a small share of your total package, your gratuity will be much lower than a calculation on total pay would suggest, so check the basic figure in your contract.

Do I get gratuity if I resign?

Article 51 of Federal Decree-Law No. 33 of 2021 entitles a full-time foreign worker who has completed at least one year of continuous service to gratuity at the end of service. It does not set a lower rate for employees who resign. Employees with less than one year of service are not entitled to gratuity, whoever ends the contract.

Does unpaid leave reduce my gratuity?

Yes. Article 51 says unpaid days of absence from work are not included in the period of service, so they reduce the years used in the calculation. Enter your total days of unpaid absence and the calculator takes them off your service before working out the gratuity at 21 or 30 days a year.

How is the daily wage worked out for gratuity?

The law sets gratuity in days of basic wage but doesn't state how to convert a monthly salary into a daily wage. The calculator offers two methods: the monthly basic divided by 30, or the annual basic divided by 365. It shows the result of both, so you can use the one in your contract or the one your employer applies.

Sources

  1. The UAE Government portal (u.ae)End of service benefits for employees in the private sector · retrieved 2026-10-20
  2. UAE LegislationFederal Decree-Law No. 33 of 2021 regarding the regulation of employment relationship (Art. 51) · retrieved 2026-10-20
  3. Ministry of Human Resources and EmiratisationMOHRE FAQ: end-of-service gratuity is calculated on the last basic salary only · retrieved 2026-10-20

By the CalcBloc teamLast verified

How every figure is checked: methodology.