UAE gratuity calculator for end-of-service pay
Enter the basic salary and two dates. 21 days a year for five years, 30 after, capped at two years.
Free · nothing you type leaves your browser · an estimate, not legal advice
How is gratuity calculated in the UAE?
- 21 days of the last basic wage for each of the first five years, then 30 days for each year after; part years count pro rata.
- Nothing is due under one year of service, and the total is capped at two years' wage.
- The daily wage is the monthly basic ÷ 30, and the gratuity is paid within 14 days of the last working day.
Checked against official sources on 16 October 2026.
Get a price for your company
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WhatsApp usYour gratuity, worked out as you type
Every line of the working is shown, so you can check it.
This is an estimate, not legal or tax advice. Federal Labour Law only; DIFC, ADGM and the savings scheme follow their own rules.
Basic AED 6,000 a month, seven years of service
- Daily wage: 6,000 ÷ 30 = AED 200
- First five years: 21 × 200 × 5 = AED 21,000
- Years six and seven: 30 × 200 × 2 = AED 12,000
- Cap: 24 × 6,000 = AED 144,000, so no cut
| Ahmed Khoury · leaver | Settlement drafted | AED 28,940 |
| October payroll | Approved | AED 286,400 |
| WPS SIF · October | Sent to the bank | 38 lines |
A liability that grows every month
Every month of service adds to what you owe when someone leaves.
Booked monthly, so the leaving day is calm
The provision grows with every payroll run, from the contract dates and basic wage.
- Posted to the accounts with payroll
- Unpaid leave taken off service
- Final settlement drafted from the same figures
UAE gratuity, in six lines
Federal Decree-Law 33 of 2021, Article 51, in force since February 2022.
Full-time foreign staff in the private sector, after one year of continuous service.
The last basic wage only. Allowances are left out.
21 days a year for five years, then 30. Part years pro rata.
Never more than two years of wage: AED 144,000 on a 6,000 basic.
Days of unpaid absence are taken off the service period.
Since 2022, resigning after one year no longer reduces the gratuity.
Every employee's gratuity, on one screen
The calculator's rule, run monthly for the whole company.
| Employee | Joined | Years | Basic · AED | Accrued · AED | Status |
|---|---|---|---|---|---|
| Imran Siddiqui | 2018-03-12 | 8.64 | 7,500 | 53,550 | Payable |
| Maria Santos | 2021-09-01 | 5.16 | 5,200 | 19,032 | Payable |
| Hassan Darwish | 2023-02-15 | 3.71 | 9,000 | 23,373 | Payable |
| Ravi Kumar | 2025-11-01 | 0.99 | 3,800 | 2,633 | Under 1 year |
A farewell should not end in a dispute.
Every line of the settlement, shown.
From your staff list to the first settlement
Payroll, the gratuity provision and a final settlement, on staff numbers like yours.
Joining dates, basic wages and unpaid leave go in, so every accrual is right.
First payroll in about two weeks; settlements drafted and paid within 14 days.
One price per user; set-up optional
AED 83 per user a month on the annual plan.
- Payroll, gratuity provision and final settlement
- WPS SIF file from the approved run
- Payslips and letters in Arabic and English
- Your own workspace and database, backed up twice a day
Our team configures the system, moves in your data and trains your staff. Paid once.
See pricing in detail →Official sources
- MoHRE: Federal Decree-Law 33 of 2021 on labour relationsmohre.gov.ae
- Ministry of Human Resources and Emiratisation (MoHRE)mohre.gov.ae
Links checked on 16 October 2026. Rules change; check the source before you act.
Common questions
Do I lose gratuity if I resign?
No. Under the 2022 law a full-time employee who resigns after one year receives the same gratuity as one whose contract the employer ended.
Is gratuity worked out on basic or total salary?
On the last basic wage only. Housing, transport and other allowances are left out. The daily wage is the monthly basic divided by 30.
What about part of a year?
Less than one year of service earns nothing. After the first year, part years are paid in proportion, which is why the calculator works in days.
I work in DIFC or ADGM. Does this apply?
No. DIFC and ADGM have their own employment laws and savings plans. This calculator covers the federal Labour Law only.