Calculate your gratuity
Three inputs. Results update as you type. Nothing leaves your browser.
- Counted service
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- Daily basic wage (basic ÷ 30)
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- Years 1–5 (21 days/yr)
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- Year 6 onwards (30 days/yr)
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- Total gratuity days
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- Legal cap (24 × basic)
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- Pay by (14 days after last day)
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The gratuity formula in four steps
Article 51 of the UAE Labour Law sets one formula for every full-time private-sector employee. Your contract type and the reason you're leaving no longer change it.
Check eligibility
At least one year of continuous service. Under one year, no gratuity is due.
≥ 365 daysFind your daily wage
Take your last basic monthly salary and divide by 30.
Basic ÷ 30Count gratuity days
21 days for each of the first 5 years, 30 days for each year after. Part years count pro rata.
21 × yrs₁₋₅ + 30 × yrs₆₊Multiply and cap
Daily wage × gratuity days, capped at two years' basic salary.
≤ 24 × BasicHow gratuity grows with service
Measured in months of basic salary, so it works for any pay level. The line steepens after year 5 and flattens at the two-year cap.
Quick rule of thumb: after year 5, every extra year adds one full month of basic salary.
Old law vs current law
Federal Law No. 8 of 1980 was repealed and replaced by Federal Decree-Law No. 33 of 2021 from 2 February 2022. These are the changes that move your number.
Before Feb 2022 (Law No. 8 of 1980)
- Resigning from an unlimited contract after 1–3 years paid only 1/3 of gratuity
- Resigning after 3–5 years paid only 2/3
- Limited and unlimited contracts followed different gratuity rules
- Dismissal for gross misconduct could forfeit gratuity
- One year from the date a right fell due to file a claim
Now (Decree-Law No. 33 of 2021, as amended)
- Full gratuity on resignation once you complete 1 year
- All contracts are fixed-term; one formula for everyone
- The law no longer contains a forfeiture clause for Article 44 dismissals
- Settlement due within 14 days of the contract ending (Article 53)
- Two years from the end of employment to file a claim (since 31 Aug 2024)
Key legal updates affecting gratuity
- 2 February 2022Federal Decree-Law No. 33 of 2021 takes effectReplaces the 1980 law. Resignation deductions removed. Unlimited contracts phased out in favour of fixed-term contracts.
- 2022Cabinet Resolution No. 1 of 2022 (Executive Regulations)Article 30 extends pro-rated gratuity to part-time, temporary and flexible work patterns.
- October 2023Cabinet Resolution No. 96 of 2023: Savings SchemeVoluntary alternative: employers pay monthly contributions into MOHRE-approved funds instead of a lump sum at the end.
- 31 August 2024Federal Decree-Law No. 9 of 2024 amends Article 54Two years from the end of employment to file a labour claim. MOHRE can issue binding decisions on claims up to AED 50,000.
- March 2025 – February 2026MOHRE public consultation on the Savings SchemeThe scheme remains voluntary. Watch for announcements on any wider rollout.
Four real-world scenarios
Each one walks through the formula step by step. Plug the same numbers into the calculator to check.
1. Resigning after 3½ years
- Daily wage: 8,000 ÷ 30 = AED 266.67
- Days: 3.5 × 21 = 73.5 days
- Gratuity: 266.67 × 73.5
2. Eight years of service
- Daily wage: 15,000 ÷ 30 = AED 500
- Years 1–5: 5 × 21 = 105 days
- Years 6–8: 3 × 30 = 90 days
- Total: 195 days × 500
3. Unpaid leave reduces service
- Service: 1,460 − 73 = 1,387 days = 3.8 years
- Days: 3.8 × 21 = 79.8 days
- Gratuity: 333.33 × 79.8
4. Long service hits the cap
- Days: (5 × 21) + (23 × 30) = 795 days
- Uncapped: 666.67 × 795 = AED 530,000
- Cap: 24 × 20,000 = AED 480,000
UAE gratuity explained: the complete 2026 guide
What is end-of-service gratuity?
End-of-service gratuity (also called EOSB or end-of-service benefit) is a lump sum your employer must pay when your employment ends, as long as you've completed at least one year of continuous service. For private-sector employees on the UAE mainland and in most free zones, it is governed by Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations.
It applies to expatriate employees. UAE nationals (and GCC nationals) are generally covered by the state pension system instead.
What counts as "basic salary"?
Only your last basic wage, the figure labelled "basic" in your employment contract. Housing, transport, utilities, phone and other allowances are excluded, and so are bonuses, commissions and overtime. If your basic is a small share of your package, your gratuity will be much smaller than you might expect from your take-home pay.
Resignation vs termination: why the difference disappeared
Under the 1980 law, resigning from an unlimited contract with under five years' service cut your gratuity to one-third (1–3 years) or two-thirds (3–5 years). That penalty was removed in 2022. Today, the amount is the same whether you resign, your contract expires or your employer ends it, provided the contract ends lawfully and you've done one year.
Watch out: some HR spreadsheets, payroll systems and websites still apply the old 1/3 and 2/3 deductions. If your final settlement shows a resignation deduction, ask HR to recalculate under Article 51.
Limited vs unlimited contracts
The 2021 law requires all private-sector contracts to be fixed-term, so the old "limited vs unlimited" distinction no longer affects gratuity. Unlimited contracts signed before 2022 were required to be converted to fixed-term contracts.
Part-time, flexible and temporary work
Employees on non-standard work patterns are also entitled to gratuity after one year. Under Article 30 of Cabinet Resolution No. 1 of 2022, the amount is pro-rated to the hours actually worked.
Dismissal for misconduct (Article 44)
Article 44 lets an employer dismiss without notice for specific serious offences, such as fraud, assault, disclosing confidential information or being intoxicated at work. Unlike the 1980 law, the current law does not include a clause that forfeits gratuity for these dismissals. An employer can still deduct amounts you legally owe them from your gratuity (Article 51(7)). If your gratuity is being withheld after an Article 44 dismissal, get advice from MOHRE or a lawyer.
When must gratuity be paid?
Within 14 days of the end of the contract, together with unpaid wages and payment for unused annual leave (Article 53). The calculator above shows this deadline for your last working day.
The voluntary Savings Scheme
Cabinet Resolution No. 96 of 2023 created an optional alternative. Instead of a lump sum at the end, employers pay monthly contributions into a MOHRE-approved investment fund: 5.83% of basic salary for employees with up to 5 years' service and 8.33% after that. Those rates mirror the 21-day and 30-day accrual rates. If your employer enrols you, your benefit comes from the fund instead of the formula above. The scheme is still voluntary as of October 2026.
DIFC, ADGM and domestic workers
- DIFC: has its own employment law. End-of-service gratuity was replaced by the DEWS workplace savings plan.
- ADGM: has its own employment regulations. Check your contract and ADGM's rules.
- Domestic workers (maids, drivers, nannies) are covered by a separate law, Federal Decree-Law No. 9 of 2022, not by Article 51.
If your gratuity is wrong or unpaid
- Calculate your entitlement with the tool above and save the breakdown.
- Raise it in writing with HR, citing Article 51 of Federal Decree-Law No. 33 of 2021.
- If it isn't resolved, file a complaint with MOHRE (call 600 590 000, or use the MOHRE app or website).
- For claims up to AED 50,000, MOHRE can now issue a binding decision. Larger claims go to the labour courts.
- You have two years from the end of your employment to file a claim.
Common mistakes to avoid
| Mistake | What the law actually says |
|---|---|
| Using total salary | Only last basic salary counts |
| Applying a resignation cut | Abolished since 2 February 2022 |
| Ignoring part years | Every day after year one counts pro rata |
| Counting unpaid leave as service | Unpaid absence days are excluded |
| Using 30 days from year one | 21 days for years 1–5, 30 days after |
| Forgetting the cap | Maximum is 24 months of basic salary |
Legal references
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations: Articles 44, 51, 53, 54
- Cabinet Resolution No. 1 of 2022 (Executive Regulations): Article 30
- Federal Decree-Law No. 9 of 2024 (amending Article 54): claims period and MOHRE decisions
- Cabinet Resolution No. 96 of 2023 and Ministerial Resolution No. 668 of 2023: Savings Scheme
- Federal Decree-Law No. 9 of 2022: domestic workers
Frequently asked questions
Do I get full gratuity if I resign?
Yes. Since 2 February 2022, resigning after at least one year of service gives you the full Article 51 amount. The old 1/3 and 2/3 reductions no longer apply.
Is gratuity calculated on basic or total salary?
On your last basic salary only. Allowances, bonuses, commissions and overtime are excluded.
How many years do I need to qualify?
At least one full year of continuous service. If you leave before that, no gratuity is due.
What is the maximum gratuity?
Two years' basic salary (24 × your monthly basic). With the 21/30-day formula, most people reach the cap at around 25½ years of service.
Do partial years count?
Yes. Once you pass one year, extra time counts pro rata. For example, 3 years and 6 months is 3.5 × 21 = 73.5 days.
Does my probation period count?
Yes, if you pass probation and stay on, the probation period counts toward your service. If employment ends during probation, you won't have reached one year, so no gratuity is due.
Does unpaid leave reduce my gratuity?
Yes. Under Article 51(4), days of absence without pay aren't counted as service. Paid annual, sick and maternity leave still count.
Can I lose gratuity if I'm dismissed for misconduct?
The 2021 law has no clause forfeiting gratuity for Article 44 dismissals, unlike the 1980 law. Employers can still deduct amounts you legally owe them. If gratuity is withheld, contact MOHRE.
Is there still a difference between limited and unlimited contracts?
No. All private-sector contracts are now fixed-term, and gratuity uses the same formula for everyone.
How long does my employer have to pay?
14 days from the end of the contract, along with unpaid wages and unused leave (Article 53).
How long do I have to file a claim?
Two years from the date your employment ends, following the amendment made by Federal Decree-Law No. 9 of 2024.
Is gratuity taxable in the UAE?
The UAE doesn't levy personal income tax, so gratuity isn't taxed in the UAE. If you're moving to another country, check whether it taxes foreign income.
What is the gratuity Savings Scheme?
A voluntary alternative under Cabinet Resolution No. 96 of 2023. Employers pay 5.83% (up to 5 years) or 8.33% (after 5 years) of basic salary monthly into an approved fund. If you're enrolled, your benefit comes from the fund instead of the lump-sum formula.
Does this apply in DIFC or ADGM?
No. DIFC and ADGM have their own employment laws. DIFC replaced gratuity with the DEWS savings plan.
Are domestic workers covered by this calculator?
No. Domestic workers fall under Federal Decree-Law No. 9 of 2022, which has its own end-of-service rules.
Can my contract say I won't get gratuity?
A clause that takes away a right granted by the Labour Law is void. You keep your entitlement whatever the contract says.
This calculator gives an estimate based on Federal Decree-Law No. 33 of 2021 as amended. It isn't legal advice. Your contract, unpaid leave records or a Savings Scheme enrolment can change the final figure. For a binding answer, contact MOHRE or a UAE employment lawyer.