UAE gratuity calculator

01

How is gratuity calculated in the UAE in 2026?

End-of-service gratuity in the UAE is based on basic salary. The rate is 21 days for each of the first five years, then 30 days for each year after that.

When you leave a job after years of service, the first question is simple: how much gratuity am I owed? The rule is easier than it sounds. For the first five years, you get 21 days of basic salary for each year worked. After five years, each extra year earns 30 days of basic salary.

If you worked seven years, you would calculate five years at the 21-day rate and two years at the 30-day rate. Then add both results to get the final amount.

This method comes from Federal Decree-Law No. 33 of 2021, which now governs private sector employment in the UAE. If someone gives you a different method, they are likely using the old 1980 Labour Law, which is no longer in force.

02

Does resignation reduce your gratuity in the UAE?

No. Under the current UAE labour law, resignation does not reduce your gratuity.

This is one of the most misunderstood parts of end-of-service benefits in the country. Under the old 1980 labour law, a worker who resigned could receive only part of the full amount. Depending on service length, the payout could fall to one third. For decades, that rule created a strong deterrent for anyone leaving a job by choice.

Federal Decree-Law No. 33 of 2021 removed that penalty.

The problem is that many online calculators still use the old rules, and some employers do too. If you resigned and your employer used the old reduction, you can dispute the amount with MOHRE.

03

What counts as basic salary for gratuity?

Only your basic salary is used to calculate gratuity. None of the allowances in your total package are counted.

The gap between basic salary and total salary in the UAE can be large. Many employers split pay so that the basic salary is a small part of what you take home each month. The rest may be paid as housing, transport, or other allowances. Because gratuity is based on the basic figure alone, the final amount can be lower than you expect.

To protect yourself, check your employment contract or salary certificate, find the basic salary figure, and enter only that amount into any gratuity calculator UAE workers use.

What you earn each month and what your gratuity works out to be are not the same thing. It helps to know the difference before you speak with HR.

04

When is gratuity paid, and what if your employer delays it?

Your gratuity must be paid within 14 days of your last working day.

This is a legal requirement under UAE employment law. It applies whether you resigned, were terminated, or reached the end of a fixed-term contract. The 14-day clock starts on the date your employment ends.

If the payment does not arrive in time, write to HR and keep a written record. Mention the termination date and the legal time frame. A written record matters, because it becomes part of the case if the matter goes further.

If HR does not resolve it, the next step is to file a complaint with MOHRE, the UAE labour ministry. You can do this through its website, its app, or one of its service centres.

05

How can you check if your employer is calculating your gratuity correctly?

The easiest way is to use the UAE gratuity calculator on this page and enter your basic salary exactly as shown on your contract or salary certificate.

The calculator follows the formula in Federal Decree-Law No. 33 of 2021, the law now in force. If the number here and the number from your employer do not match, the gap usually comes from one of three things: they used total salary instead of basic salary, they applied the old resignation cut, or they miscounted your years of service.

If you find a mismatch, ask HR for the calculation in writing. If the issue stays open, escalate it to MOHRE.

A final note: gratuity is a legal right, not a favour. The clearer you are about the number, the easier the conversation becomes.

06

Who qualifies for gratuity, and how is the amount set?

End of service gratuity is set by Federal Decree-Law No. 33 of 2021, the UAE labour law that applies across the mainland, including Dubai and Abu Dhabi, and across most free zones.

To qualify you need to complete at least one year of continuous service. Once you do, your service gratuity is worked out on your basic salary: 21 days of pay for each of the first five years of service, and 30 days of pay for each additional year beyond that. The amount is calculated the same way regardless of contract type, and under the current law resigning no longer reduces what you are owed.

07

Do free zones follow the same gratuity rules?

Most do, because mainland employers and the majority of free zones apply the same federal end of service rules under Decree-Law No. 33 of 2021.

A few financial free zones run their own schemes, for example the DIFC, where gratuity is replaced by a funded savings plan. If you work in one of those, check your specific zone, but for the great majority of UAE employees the figures on this page apply.