Your end of service gratuity, worked out the way an HR adviser would check it. Enter your basic salary and your dates, and see every step behind the number.
How is UAE gratuity calculated?
- Take the last basic monthly salary. Allowances stay out.
- Turn it into a daily rate. Basic divided by 30 is the usual method.
- Count 21 days of basic pay for each of the first five years.
- Count 30 days for each year after that.
- Add part years in proportion, once the first full year is done.
- Take unpaid leave out of service, and cap the total at 24 months of basic.
The rules come from Article 51 of Federal Decree-Law No. 33 of 2021, which covers private-sector staff on the mainland and in most free zones. The full payment is due within 14 days of the last working day.
What changes the figure, and what does not?
- Allowances: housing and transport never count. Only basic salary does.
- Unpaid leave: every unpaid day comes off your service.
- Resigning: it no longer cuts gratuity. Old one-third and two-thirds reductions belong to the repealed 1980 law.
- Dismissal for misconduct: gratuity is still paid. The current law does not let it be taken away.
- Long service: the cap of 24 months of basic only bites after about 25 years.
Example: six years and four months
An engineer joins on 1 May 2020 and leaves on 31 August 2026 on a basic of AED 12,600. The daily rate is AED 420. The first five years earn 105 days. The year and 123 days after that earn 40.11 days at the higher rate. Total: 145.11 days, or AED 60,946. If his employer divides by 365 instead of 30, the figure is AED 60,111. Same law, two methods, an AED 835 gap. That is why the calculator shows both.
Running exits for a whole team? Our
payroll outsourcing team works out gratuity, leave pay and final settlements every month. Prefer to automate it?
Workplus HCM calculates gratuity from each employee file.
Frequently asked questions
How much gratuity do I get after one year in the UAE?
21 days of basic salary. On a basic of AED 6,000, that is AED 4,200. One day short of a full year and nothing is due.
Is gratuity calculated on basic or total salary?
On basic salary only. Housing, transport and other allowances are left out.
Do I lose gratuity if I resign?
No. Under the current UAE labour law, resigning does not reduce gratuity once you have completed a year of continuous service.
How do part-time employees calculate gratuity?
The law pays part-time staff in proportion to their hours. Enter your actual part-time basic salary and the result is already in proportion.
Does this calculator work for DIFC, ADGM or UAE nationals?
No. DIFC uses the DEWS savings plan, ADGM has its own regulations and UAE nationals are covered by pension law. The calculator tells you when your answer sits outside the federal formula.
Related terms and services
Last reviewed: 3 November 2026 by Tuscan Consulting's HR advisory team, Dubai
