UAE Gratuity Calculator
Work out your UAE end of service gratuity from your basic salary and years of service, using the statutory formula.
Calculate your gratuity
Your end of service gratuity
Your gratuity breakdown
The first five years earn 21 days of basic salary each. Every year after that earns 30 days of basic salary each.
Gratuity at your basic salary
Same basic salary, different lengths of service. Your length of service is highlighted.
How UAE gratuity works
UAE end of service gratuity is set by Federal Decree-Law No. 33 of 2021, the UAE Labour Law, which took effect on 2 February 2022 and replaced the 1980 labour law. This free calculator uses the statutory formula below, so you can check the same numbers your employer should use. It runs entirely in your browser, with no sign-up and nothing uploaded.
How is UAE gratuity calculated?
UAE gratuity is 21 days of basic salary for each year of service in the first five years, then 30 days of basic salary for each year after that. The daily wage is your monthly basic salary divided by 30. Multiply the daily wage by your total gratuity days to get your end of service amount.
Which salary counts for UAE gratuity?
Only your basic salary counts, not your total pay. Allowances for housing, transport and other benefits are left out of the calculation, so your gratuity is based on the basic salary written in your contract. Check your labour contract or salary certificate to find the exact basic salary figure before you calculate.
What happens if I resign from a limited contract early?
Under the old rules, resigning from a limited contract before five years could cut your gratuity, and the cut depended on how long you had served. The 2021 labour law changed this area, so the treatment now depends on your contract terms and the date it was signed. Ask your employer or a UAE labour adviser to confirm your position.
Does gratuity apply to all UAE workers?
Gratuity applies to most private sector employees working under the UAE Labour Law, including expatriates, who make up most of the workforce. It does not cover domestic workers, who have their own rules, or government employees on separate schemes. Free zone workers are usually covered, but their free zone authority may add its own rules.
Is UAE gratuity paid as a lump sum?
Yes, gratuity is normally paid as one lump sum when your employment ends, together with your final salary and any unused leave pay. Your employer must settle it as part of your final settlement, and it is usually paid in the same currency as your salary. Keep your labour contract and salary slips as proof of your basic salary.
Is UAE gratuity taxed?
No, the UAE does not charge personal income tax, so your gratuity is paid in full and you do not pay UAE tax on it. If you are a citizen of a country that taxes worldwide income, your home country may still want to know about it. Check your home country’s tax rules if you are unsure.
Frequently asked questions
How many days of gratuity do I get for 3 years of service?
You get 63 days of basic salary, which is 3 years at 21 days a year. At a basic salary of AED 10,000 a month, that is a daily wage of AED 333.33 and a total gratuity of AED 21,000. Enter your own salary and years above to get your exact figure.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated on your basic salary only. Housing, transport and other allowances are not included, even if they make up a large part of your monthly pay. Your basic salary is the figure written in your labour contract.
Do I get gratuity if I resign?
Yes, if you have completed at least one year of continuous service. Resignation does not remove your entitlement under the current labour law. If you are on a limited contract and resign early, your contract terms can change the amount, so check them before you resign.
What is the daily wage used for gratuity?
The daily wage is your monthly basic salary divided by 30. For example, a basic salary of AED 9,000 a month gives a daily wage of AED 300. This calculator uses that same division for every result.
What if my basic salary changed during my employment?
Gratuity is worked out on your last basic salary, not an average of your past salaries. If you had a pay rise near the end of your service, the higher salary applies. Your final salary slip is the document your employer will use.
Is there a maximum gratuity amount?
Yes. Under the UAE Labour Law, total gratuity cannot exceed two years of basic salary, which is 720 days of basic pay. That cap only affects very long service of more than about 25 and a half years. This calculator applies the cap automatically.
Does this calculator store or send my data?
No. The calculator runs entirely in your browser. Nothing you type is uploaded, stored or shared.
More tools you may need
Planning what to do with the payout? See how it could grow with our Compound Interest Calculator, or check your monthly take-home with our Paycheck Calculator. Comparing a salary offer? Try the Salary to Hourly Calculator or the Overtime Pay Calculator.
