GulfDues / UAE gratuity calculator
UAE gratuity calculator
Your end-of-service gratuity under the UAE Labour Law (Federal Decree-Law No. 33 of 2021): 21 days of basic salary for each of the first 5 years, 30 days for each year after - resigned or terminated.
Your estimate
How it is worked out
| Service | Gratuity |
|---|---|
| Under 1 year | None |
| Years 1 to 5 | 21 days of basic wage for each year |
| After 5 years | 30 days of basic wage for each further year |
| Limit | Not more than 2 years of wage in total |
Example: basic AED 10,000, 6 years of service: daily wage 10,000 ÷ 30 = 333.33; 21 × 5 + 30 × 1 = 135 days; gratuity ≈ AED 45,000.
Sources (checked October 2026): Morgan Lewis: UAE Federal Labour Law 2021 · Gulf News explainer. Laws change - the ministry or a court gives the final figure.
Questions
How is gratuity calculated in the UAE?
Under Article 51 of Federal Decree-Law No. 33 of 2021, a foreign full-time worker with at least one year of continuous service gets 21 days of basic wage for each of the first five years and 30 days for each year after that. Part years count pro rata. The total cannot be more than two years of wage.
Is gratuity on basic salary or total salary?
On the basic salary. Housing, transport and other allowances are not included - check the basic salary in your contract.
Do I lose gratuity if I resign?
Not under the current law. The old reductions for resigning before 5 years were removed when the 2021 law took effect (February 2022).
Do unpaid leave days count?
No. Days of absence from work without pay are not counted in the period of service.
When must the employer pay?
All dues, including gratuity, must be paid within 14 days after the contract ends.
How is the daily wage worked out here?
This calculator takes the monthly basic salary ÷ 30. Some employers use basic × 12 ÷ 365; the difference is small.