UAE Gratuity Calculator (End of Service Benefits)
Enter your basic monthly salary and service period to estimate your UAE end-of-service gratuity.
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UAE Gratuity Calculator (End of Service Benefits) by TheCalcTools
How the UAE Gratuity Calculator (End of Service Benefits) works
Under Federal Decree-Law No. 33 of 2021, a full-time private-sector employee with at least one year of continuous service earns 21 days of basic wage for each of the first five years and 30 days for each year after that. Part years count in proportion.
The daily wage is the basic monthly salary divided by 30. Allowances such as housing and transport are not included. Total gratuity cannot exceed two years’ wages; this calculator caps it at 24 months of basic salary. Days of unpaid absence are not counted as service.
The formula
Worked example
Using the default values shown in the calculator:
| Last basic monthly salary | AED12000 |
|---|---|
| Years of service | 8 |
| Extra months | 0 |
| Extra days | 0 |
| Unpaid absence days (excluded) | 0 |
- Daily wage: AED 12,000 ÷ 30 = AED 400.00.
- Days: 21 × 5 + 30 × 3 = 195. Gratuity = 195 × 400 = AED 78000.00.
Result:
| Estimated gratuity | AED 78000.00 |
|---|---|
| Daily basic wage | AED 400.00 |
| Days of pay earned | 195.0 |
| Service counted (years) | 8.00 |
| Eligible? | Yes |
Frequently asked questions
Do I lose gratuity if I resign?
Under the 2021 law, the old reductions for resigning (one third or two thirds) no longer apply to the standard calculation; resigning employees with at least one year of service receive the full amount. Check your contract and free-zone rules.
Does this apply to DIFC, ADGM or government jobs?
No. DIFC and ADGM have their own employment laws (DIFC uses a workplace savings scheme), and government and some free zones have different rules.
Sources and further reading
- UAE Ministry of Human Resources and Emiratisation: End of service benefits
- UAE Government portal: End of service benefits for private sector employees
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This calculator gives estimates for information only. It is not tax or legal advice. Tax rules change and depend on your circumstances, so check current rules or ask a qualified professional. See our disclaimer.