UAE gratuity calculator
Estimate end-of-service gratuity under the UAE Labour Law. Enter the basic salary and the employment dates; the result updates as you type.
Basic only. Housing, transport and other allowances are not included.
Estimated gratuity
AED 49,479.45
- Counted service
- 7.68 years
- Daily basic wage
- AED 266.67
- First 5 years (21 days a year)
- AED 28,000.00
- After 5 years (30 days a year)
- AED 21,479.45
For full-time private-sector employees under the UAE Labour Law. DIFC, ADGM, government and domestic workers follow different rules. This is an estimate, not legal advice.
How the calculation works
The calculator counts the days between the first and last working day, removes unpaid absence, and converts the result to years of service. The daily wage is the monthly basic salary divided by 30.
For the first five years, each year earns 21 days of basic wage. Each year after the fifth earns 30 days. The total is capped at two years of wage, and nothing is due if service is under one year.
Example: an employee on AED 8,000 basic salary with 7 years of service gets 5 × 21 × AED 266.67 = AED 28,000 for the first five years, plus 2 × 30 × AED 266.67 = AED 16,000 for the next two. That makes AED 44,000 in total.
Gratuity questions
How is gratuity calculated in the UAE?
Under the UAE Labour Law, a full-time private-sector employee with at least one year of continuous service gets 21 days' basic wage for each of the first five years, and 30 days' basic wage for each year after that. Part years count pro rata.
Is gratuity based on basic salary or total salary?
Basic salary. Allowances such as housing and transport are not included unless your contract says otherwise.
Is there a maximum gratuity?
Yes. Total gratuity can't exceed two years' wage.
Do I lose gratuity if I resign?
Under the current Labour Law (Federal Decree-Law No. 33 of 2021), gratuity isn't reduced because you resigned, as long as you completed at least one year of continuous service.
Does unpaid leave count towards service?
No. Days of unpaid absence are not counted as service when calculating gratuity.
When must the employer pay gratuity?
The employer must pay all end-of-service dues, including gratuity, within 14 days of the end of employment.
Keep your payroll and provisions right
We keep your books, including end-of-service provisions in your accounts, so year-end statements and corporate tax returns stay accurate.