UAE Gratuity Calculator
Calculate your UAE end-of-service gratuity under the 2021 Labour Law: 21 days' basic pay per year for the first 5 years and 30 days per year after that.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the UAE Gratuity Calculator Works
End-of-service gratuity is a lump sum paid to employees in the UAE when their employment ends, governed by Federal Decree-Law No. 33 of 2021. This calculator estimates it from your basic monthly salary and your length of service. Enter your salary and the number of years (plus any extra months) to see the total gratuity, the number of gratuity days earned, and your daily wage.
The Formula
First, the daily wage is derived from the basic monthly salary:
Daily wage = basic monthly salary ÷ 30
Gratuity then accrues at two rates depending on tenure:
Gratuity = (21 × first 5 years + 30 × years beyond 5) × daily wage
Two rules apply:
- A minimum of one full year of continuous service is required, or no gratuity is due.
- The total is capped at two years’ wage as a statutory maximum.
Worked Example
Take an employee with a basic salary of AED 10,000 and 6 years of service:
- Daily wage = 10,000 ÷ 30 = AED 333.33
- First 5 years: 21 × 5 = 105 days
- Beyond 5 years: 30 × 1 = 30 days
- Total gratuity days = 105 + 30 = 135 days
- Gratuity = 135 × 333.33 = AED 45,000
This is well under the two-year cap (AED 240,000), so the full amount is payable.
What Counts Toward Gratuity
| Component | Included in gratuity? |
|---|---|
| Basic salary | Yes |
| Housing allowance | No |
| Transport allowance | No |
| Commissions / bonuses | No |
| Years of continuous service | Yes (min 1 year) |
Notes and Limitations
This tool reflects the standard accrual under the 2021 federal law for the private sector. It assumes the basic salary you enter is the final basic salary and that service was continuous. Specific situations — such as termination for gross misconduct, unpaid leave periods, or free-zone-specific rules (for example, DIFC’s funded scheme) — can change the entitlement. For a binding figure, confirm with your HR department or the Ministry of Human Resources and Emiratisation.
Frequently asked questions
How is end-of-service gratuity calculated in the UAE?+
Under Federal Decree-Law No. 33 of 2021, you earn 21 days of basic salary for each of the first five years of service and 30 days for each year after five. The daily wage is the basic monthly salary divided by 30, and the total gratuity is capped at two years' wage.
Is gratuity based on basic salary or total salary?+
Gratuity is calculated on your basic salary only. Allowances such as housing, transport and commissions are excluded from the gratuity calculation under UAE Labour Law.
Do I get gratuity if I worked less than a year?+
No. UAE Labour Law requires at least one year of continuous service to be entitled to end-of-service gratuity. Service below one full year earns no gratuity.
How are partial years of service treated?+
Gratuity accrues proportionally for completed days beyond a full year. This calculator lets you add extra months, converting them to a fraction of a year so the accrual reflects your exact length of service.
Is there a maximum gratuity amount in the UAE?+
Yes. The total end-of-service gratuity cannot exceed the equivalent of two years' total wage, regardless of how long you have worked. This calculator applies that statutory cap automatically.