UAE gratuity calculator
Work out your end of service gratuity under the UAE Labour Law. Gratuity is paid on basic salary only: 21 days of basic salary for each of your first five years, 30 days for each year after that, and never more than two years of wage.
Your gratuity
Enter your basic salary and length of service to see your gratuity and how it is worked out.
General information, not legal advice. Rules and fees change, so check the linked source before you rely on a figure.
How gratuity is worked out
- You must complete at least one year of continuous service. Under one year, no gratuity is due.
- For each of the first five years: 21 days of basic salary.
- For each year after five: 30 days of basic salary.
- After the first year, part years count in proportion to the time worked.
- Days of unpaid absence are not counted as service.
- Gratuity is based on your last basic salary. Allowances such as housing, transport, utilities and furniture are not included.
- The total cannot exceed two years of wage.
- The employer may deduct amounts you owe, and must pay within 14 days of the end of the contract.
Sources: u.ae, End of service benefits for workers in the private sector, page updated 15 October 2026; UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, English text published by the Dubai Development Authority, Articles 51 and 53. Checked October 2026.
How this calculator turns days into dirhams
The law counts gratuity in days of basic wage. The law text and the u.ae guidance we read do not say how to turn a monthly salary into a daily rate. This calculator uses one thirtieth of the monthly basic salary. If your employer divides the yearly basic salary by 365 instead, the result is about 1.4% lower. Part years are counted in days out of 365, and the cap is applied as 24 months of basic salary.
Worked example
A basic salary of 12,000 AED a month and 7 years and 6 months of service:
72,000 AED
180 days of basic salary for 7.5 years of service.
- Daily basic salary: 12,000 AED divided by 30 = 400 AED.
- Service: 7 years and 6 months, which is 7.5 years.
- First five years: 5 years at 21 days a year = 105 days.
- After five years: 2.5 years at 30 days a year = 75 days.
- Total: 180 days at 400 AED = 72,000 AED.
- Cap: two years of basic salary is 288,000 AED. Your total is below it, so the cap does not apply.
Why the basic salary matters in an offer
Two offers can pay the same each month and leave very different gratuities. Here are two offers of 20,000 AED a month in total. The only difference is how much of it is basic salary.
| Offer of 20,000 AED | After 3 years | After 5 years | After 10 years |
|---|---|---|---|
| 12,000 basic, 8,000 allowances | 25,200 | 42,000 | 102,000 |
| 8,000 basic, 12,000 allowances | 16,800 | 28,000 | 68,000 |
Housing and transport allowances add to your monthly pay but not to your gratuity. When you compare offers, compare the basic salary too. The Dubai job offer checklist covers the other parts of an offer.
Gratuity by years of service
In days of basic salary, in months of basic salary, and in AED for a basic salary of 10,000 AED a month.
| Years of service | Days | Months of basic | AED on 10,000 basic |
|---|---|---|---|
| 0.5 | 0 | 0 | 0 |
| 1 | 21 | 0.7 | 7,000 |
| 2 | 42 | 1.4 | 14,000 |
| 3 | 63 | 2.1 | 21,000 |
| 4 | 84 | 2.8 | 28,000 |
| 5 | 105 | 3.5 | 35,000 |
| 7 | 165 | 5.5 | 55,000 |
| 10 | 255 | 8.5 | 85,000 |
| 15 | 405 | 13.5 | 135,000 |
| 20 | 555 | 18.5 | 185,000 |
| 25.5 | 720 | 24 | 240,000 |
| 30 | 720 | 24 | 240,000 |
Where the rules differ
UAE nationals
Emiratis in the private sector get end of service benefits under the pensions and social security law, not this formula.
Sources: UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, English text published by the Dubai Development Authority, Article 51(1); u.ae, End of service benefits for workers in the private sector. Checked October 2026.
Government jobs
The Labour Law does not apply to employees of federal and local government entities. Federal government staff come under the federal Human Resources Law, Federal Decree-Law No. 49 of 2022, and each emirate has its own government human resources law, such as the one in Dubai.
Sources: UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, English text published by the Dubai Development Authority, Article 3(2); u.ae, Employment laws for the government sector. Checked October 2026.
Free zones
u.ae says free zone employees are sponsored by the free zone authority, and each free zone authority has its own employment rules, which must be in line with the Labour Law. Check which rules your contract names.
Source: u.ae, Working in free zones. Checked October 2026.
DIFC
The Dubai International Financial Centre has its own Employment Law. Instead of paying a lump sum at the end, a DIFC employer pays into a qualifying savings scheme each month: 5.83% of your monthly basic wage for the first five years of service and 8.33% for each year after that. This calculator does not apply.
Source: DIFC Employment Law No. 2 of 2019, consolidated version July 2025, Article 66(7). Checked October 2026.
ADGM
Abu Dhabi Global Market has its own Employment Regulations. Gratuity there is also 21 days of basic wage for each of the first five years and 30 days after, but the regulations set their own daily rate, and the basic wage used cannot be less than half of your wages.
Source: ADGM Employment Regulations 2024, consolidated version September 2025, section 61. Checked October 2026.
The Savings Scheme
Mainland and free zone employers can choose a voluntary alternative to gratuity. The employer pays 5.83% of your monthly basic salary into an approved investment fund while you have under five years of service, and 8.33% after five years. You receive the contributions and any returns within 14 days of the end of your job. Gratuity earned before you join the scheme is settled under the law.
Source: u.ae, End of service benefits for workers in the private sector, Savings Scheme. Checked October 2026.
Part-time and other work patterns
For part-time work, the gratuity is the full-time gratuity multiplied by your contract hours as a share of full-time hours. Temporary work of under one year earns no gratuity.
Source: u.ae, End of service benefits for workers in the private sector, citing Article 30 of Cabinet Resolution No. 1 of 2022. Checked October 2026.
Questions about gratuity
Is gratuity worked out on basic or total salary?
On basic salary only. The law calculates gratuity on the last basic wage, so allowances such as housing, transport, utilities and furniture are left out.
Do I get gratuity if I leave before one year?
No. A full-time worker must complete at least one year of continuous service before any gratuity is due.
Are part years counted?
Yes. Once you have completed one year, you get gratuity for part years in proportion to the time you worked.
Is there a maximum gratuity?
Yes. The total gratuity cannot exceed two years of wage. With 21 days a year for five years and 30 days a year after that, a gratuity reaches 24 months of basic salary after 25 and a half years.
When must the employer pay it?
Within 14 days of the end of the contract, together with unpaid wages and other dues.
Can the employer deduct money from my gratuity?
Yes. The employer may deduct amounts you owe under the law or a court judgment.
What is the Savings Scheme?
A voluntary alternative to gratuity run by the Ministry of Human Resources and Emiratisation. An employer who joins pays 5.83% of your monthly basic salary into an approved investment fund while you have under five years of service, and 8.33% after five years. You receive the contributions and any returns when your job ends.
Does this calculator work for DIFC jobs?
No. DIFC has its own Employment Law. DIFC employers pay 5.83% of monthly basic wage for the first five years and 8.33% after that into a qualifying savings scheme instead.
Sources: u.ae, End of service benefits for workers in the private sector; UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships, English text published by the Dubai Development Authority, Articles 51 and 53; DIFC Employment Law No. 2 of 2019, consolidated version July 2025, Article 66. Checked October 2026.
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