UAE gratuity calculator
Estimate your end-of-service gratuity as a foreign worker in the UAE private sector. Enter your last basic salary and your working dates. The calculator applies Article 51 of the UAE Labour Law, including part years, unpaid days and the two-year cap.
Your estimate appears here
The calculator uses the rates in Article 51 of the UAE Labour Law:
- 21 days’ basic salary for each of your first five years
- 30 days’ basic salary for each year after that
- part years count once you’ve finished one full year
- the total can’t go above two years’ wage
How the calculation works
Gratuity is counted in days of basic salary for each year of continuous service. Unpaid days come off your service first. Allowances such as housing and transport aren’t included.
1 to 5 years
21 days' basic salary for each year
After 5 years
30 days' basic salary for each extra year
Part years
Counted proportionally after your first full year
Cap
No more than two years' wage in total
Example: AED 10,000 basic salary, 7.5 years of service
5 years × 21 days = 105 days, plus 2.5 years × 30 days = 75 days, so 180 days of basic salary. With basic ÷ 30 that’s AED 60,000. With basic × 12 ÷ 365 it’s AED 59,178.08.
Want the full rules, including resignation, deductions and the payment deadline? Read our guide to calculating gratuity in the UAE or see how our HR services handle final settlements and visa cancellation paperwork.
Gratuity: your questions
Short answers here. Your situation may differ, so ask us before you decide.
How is gratuity calculated in the UAE?
For foreign workers in the private sector with at least one year of continuous service, Article 51 of Federal Decree-Law No. 33 of 2021 gives 21 days' basic salary for each of the first five years and 30 days' basic salary for each year after that. Part years count proportionally.
Who is entitled to gratuity?
Foreign full-time workers who complete at least one year of continuous service. With less than one year there's no gratuity. UAE nationals receive end-of-service benefits under the pensions and social security laws instead.
Is gratuity based on basic salary or total salary?
Basic salary. The law uses your last basic wage, which it defines as the wage in your contract without allowances or in-kind benefits. Housing, transport and similar allowances aren't included.
Why does the calculator show two amounts?
The law sets the number of days but gives no daily-wage formula. Article 67 counts a month as 30 days, so the higher figure divides your monthly basic salary by 30. Some payrolls instead multiply it by 12 and divide by 365, which gives the lower figure.
Is there a maximum gratuity?
Yes. The total can't be more than two years' wage. The calculator applies this as 24 months of basic salary, which you'd only reach after roughly 25 years of service.
Do unpaid leave days count towards gratuity?
No. Days of absence from work without pay aren't counted as service, so they shorten your service period. Enter them in the calculator to see the effect.
Does resigning reduce my gratuity?
Article 51 sets the same rates whether you resign or your employer ends the contract, with no reduced rate for resigning. You still need at least one year of continuous service.
When must my employer pay my gratuity?
Within 14 days from the end date of your contract, together with your other dues such as unpaid wages.
Can my employer deduct money from my gratuity?
Yes, for amounts you owe under the law or a court judgment. For penalties and damage costs, the employer must follow the legal procedure and can't deduct amounts that fell due more than three months earlier, unless you agreed otherwise.
How is gratuity worked out for part-time workers?
Your contract hours a year are divided by full-time hours a year to give a percentage, which is applied to the full-time gratuity. Temporary work shorter than one year has no gratuity.
Does this apply in free zones, DIFC and ADGM?
On the mainland, the UAE Labour Law applies. Free zone staff are generally governed by their free zone's employment regulations, which are usually aligned with federal law, and are also covered by the UAE Labour Law, so check your free zone's rules too. DIFC and ADGM have their own employment laws: since 1 February 2020, DIFC employers pay into the DEWS savings plan or another qualifying scheme instead of gratuity.
Source: UAE Government portal: laws applicable to free zone employees
What is the optional end-of-service savings scheme?
An optional end-of-service savings system that private-sector employers on the mainland and in free zones can subscribe to. The employer pays a monthly contribution, invested in a risk-free, risk-based or Sharia-compliant option, and the worker receives the savings when the contract ends.
This calculator gives an estimate under Federal Decree-Law No. 33 of 2021. Your final amount depends on your contract, your employer's payroll method and any lawful deductions; MOHRE handles complaints and the courts decide disputes. Global Sky PRO is a private consultancy, not a law firm or government body. Last reviewed 10 November 2026 by the Global Sky PRO team.
Official sources
- UAE Government portal: end of service benefits for private-sector workers
- Federal Decree-Law No. 33 of 2021 and its amendments (PDF)
- Cabinet Resolution No. 1 of 2022, Executive Regulation (PDF)
- UAE Government portal: laws applicable to free zone employees
- DIFC Courts: FAQs on the DIFC Employment Law (PDF)
- ADGM Employment Affairs Office: Employment Regulations 2024 guidance (PDF)