No statutory gratuity
The worker must complete at least one year of eligible continuous service before gratuity is due under this formula.
Free UAE HR tool
UAE Gratuity Calculator
Estimate end-of-service gratuity in Dubai and across the UAE using the current federal private-sector formula. Enter the last basic salary and exact service dates to see every step.
Updated for 2026Article 51 formulaNo sign-up
Estimated result
Enter your details
Your calculation will show the service period, both gratuity bands and the statutory cap.
This is an estimate, not a final settlement.
Contractual enhancements, lawful deductions, pension rules, an alternative savings scheme or a different legal regime can change the amount.
Current UAE formula
How gratuity is calculated in the UAE
Article 51 of Federal Decree-Law No. 33 of 2021 sets the traditional end-of-service formula for covered full-time foreign workers. The last basic wage and eligible service period drive the estimate.
21 days per year
Daily basic wage × 21 × eligible years, including a proportional fraction after the first year.
30 days per year
The first five years stay at 21 days. Service beyond five years is calculated at 30 days of basic wage per year.
Daily basic wageMonthly basic salary ÷ 30×Gratuity days earnedSubject to the two-year wage cap
Use the right framework
When this calculator applies
“UAE gratuity” is not one universal calculation. Check the employment authority and benefit system before relying on any number.
Traditional federal private-sector gratuity
Full-time foreign workers covered by Article 51, including ordinary Dubai mainland employment and other workplaces governed by the federal private-sector law.
DIFC, ADGM and special regimes
Financial free zones have separate employment frameworks. Government employees and domestic workers also follow different rules.
UAE nationals and pension coverage
End-of-service benefits for UAE nationals are governed by the applicable pensions and social-security legislation.
Alternative savings scheme
Once an employee is enrolled, the employer stops the traditional accrual for the covered period and contributes to an approved investment fund instead.
Worked examples
See the UAE gratuity formula in AED
AED 8,000 basic salary
AED 8,000 ÷ 30 × 21 days × 3 years
AED 16,800AED 10,000 basic salary
First five years: AED 35,000
Next two years: AED 20,000
Below the minimum service
Article 51 requires at least one year of eligible continuous service.
AED 0Fractions after the first eligible year are paid proportionately. Unpaid absence is removed before the service period is applied.
Plain-language answers
UAE gratuity calculator FAQ
These answers describe the traditional federal private-sector formula. They are general information, not legal advice.
Is UAE gratuity calculated on basic salary or total salary?
For a full-time foreign worker covered by Article 51, gratuity is calculated using the last basic wage. Housing, transport, utilities, furniture and similar allowances are not part of that calculation base.
How is gratuity calculated in the UAE for the first five years?
After at least one year of eligible continuous service, the calculation uses 21 days of basic wage for each year of the first five years. A monthly basic wage is divided by 30 to show the daily basic wage used by this calculator.
What happens to UAE gratuity after five years?
The first five years remain at 21 days of basic wage per year. Each eligible year beyond five is calculated at 30 days of basic wage, with fractions of a year paid proportionately.
Do I receive gratuity if I resign under the current UAE Labour Law?
The current Article 51 formula does not apply the old one-third or two-thirds resignation reductions. A covered full-time foreign worker generally becomes eligible after one year of continuous service, although lawful deductions or a different employment regime can affect the final settlement.
Are unpaid leave days included in the gratuity calculation?
No. Article 51 states that unpaid days of absence are not included in the service term used for end-of-service gratuity. Add those days to the calculator so they can be removed from the estimate.
When should an employer pay UAE end-of-service benefits?
Article 53 requires the employer to pay wages and other end-of-contract entitlements within 14 days from the contract end date, subject to the applicable law and circumstances.
Does this gratuity calculator apply in DIFC or ADGM?
No. DIFC and ADGM have separate employment frameworks. This calculator is for the traditional federal private-sector gratuity formula and also excludes domestic workers, government employment, UAE-national pension benefits and employees enrolled in the alternative savings scheme for the period covered by that scheme.
Source checked
Official UAE references
The calculator and guide were reviewed against current government material. Regulations can change, so verify unusual or disputed cases with the relevant authority.
- 01Federal Decree-Law No. 33 of 2021↗
- 02UAE Government: private-sector end-of-service benefits↗
- 03MoHRE: worker rights and end-of-service guidance↗
- 04Cabinet Resolution No. 1 of 2022↗
Important: This calculator provides a planning estimate. It does not calculate annual-leave pay, notice pay, wages, commissions, pension benefits, savings-scheme investment value, contractual enhancements, debts or court-ordered deductions. For an official determination, contact MoHRE or the authority governing the employment.
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