UAE gratuity calculator

This gratuity calculator estimates your UAE end of service benefit from your basic salary and length of service, under Federal Decree-Law 33 of 2021. Gratuity is paid on your basic pay only, not your total package, and you need at least one full year of service to qualify.

How is it calculated?

For a limited or unlimited contract, you earn 21 days of basic pay for each of the first five years of service, and 30 days of basic pay for each year beyond five. The total is capped at two years of pay.

The daily rate is your last basic salary divided by 30. The rule is set by the Ministry of Human Resources and Emiratisation (MOHRE). Unpaid leave days are excluded, and an early resignation on an old-style contract can reduce the amount.

Worked example. On a basic salary of AED 10,000 with four full years of service: 21 days per year is about AED 7,000 a year, so roughly AED 28,000 in total.

How to use this tool

The calculator does the arithmetic for you; you only need the figures for your own case. Follow these three steps and read the result as an indicative guide, then send it to us for a fixed, itemised confirmation.

1. Take your last basic salary Use your basic monthly salary, excluding allowances, and divide by 30 for a daily rate.
2. Apply the yearly entitlement Use 21 days per year for the first five years and 30 days per year after that.
3. Total and cap Add the years together and cap the result at two years of basic pay.

Frequently asked questions

Sources

1. Ministry of Human Resources and Emiratisation mohre.gov.ae
2. UAE Government, end of service gratuity u.ae

Figures verified September 2026 against the sources above.

Government fees and rules change. This page is general information, not legal or tax advice. We confirm the current position in writing before you commit.