Free tool
UAE gratuity calculator
Enter your basic salary and dates to see your end-of-service gratuity under the UAE Labour Law. Free, with no sign-up.
Your last basic salary, without housing, transport or other allowances. It's on your contract and payslip.
These days don't count as service. Paid leave and sick leave do.
How it's worked out
- 1. Service: 2,007 days, which is 5.499 years
- 2. First 5 years: 5 × 21 days = 105 days of basic pay
- 3. After 5 years: 0.499 × 30 days = 14.96 days of basic pay
- 4. Daily basic pay: AED 10,000 ÷ 30 = AED 333.33
- 5. 119.96 days × AED 333.33 = AED 39,986
In short
In the UAE, a full-time private-sector employee with at least one year of service gets 21 days of basic pay for each of their first 5 years, and 30 days for each year after. The total can't be more than 2 years of basic pay.
Updated
- Law
- Federal Decree-Law No. 33 of 2021, Article 51
- Minimum service
- 1 year
- Based on
- Basic salary only
- Paid within
- 14 days
- Built into
- Leagrow Payroll
How UAE gratuity is calculated.
The end-of-service rules for private-sector employees, from the 2021 UAE Labour Law.
| Rule | Gratuity |
|---|---|
| Less than 1 year | No gratuity |
| First 5 years | 21 days of basic pay for each year |
| After 5 years | 30 days of basic pay for each year |
| Part of a year | In proportion to the days worked |
| Daily basic pay | Monthly basic salary ÷ 30 |
| Most you can get | 2 years of basic pay |
| Paid by | Within 14 days of the contract ending |
Source: Federal Decree-Law No. 33 of 2021, Article 51. Checked . For official guidance, see MOHRE.
Gratuity by years of service.
End-of-service gratuity at common basic salaries, for full years with no unpaid leave.
| Years | Days of basic pay | Basic AED 10,000 |
|---|---|---|
| 1 year | 21 | AED 7,000 |
| 2 years | 42 | AED 14,000 |
| 3 years | 63 | AED 21,000 |
| 4 years | 84 | AED 28,000 |
| 5 years | 105 | AED 35,000 |
| 6 years | 135 | AED 45,000 |
| 7 years | 165 | AED 55,000 |
| 8 years | 195 | AED 65,000 |
| 10 years | 255 | AED 85,000 |
| 15 years | 405 | AED 135,000 |
| 20 years | 555 | AED 185,000 |
| 25 years | 705 | AED 235,000 |
Who gets UAE gratuity.
Most private-sector employees, on the mainland and in most free zones. A few groups have their own rules.
These rules cover
- Full-time private-sector employees under the UAE Labour Law
- Whether you resign or your employer ends the contract
- Employees on the mainland and in free zones that follow the UAE Labour Law
- Part years, in proportion to the days worked
Different rules apply to
- UAE nationals, who are covered by the GPSSA pension instead
- DIFC and ADGM, which have their own employment laws
- Government employees, under their own rules
- Companies in MOHRE's savings scheme, which pay into a fund instead
Run final settlements in Leagrow.
Leagrow Payroll works out gratuity and everything else a leaver is owed, and pays it in the next pay run. Free for up to 10 people.
- End-of-service gratuity worked out from each person's salary and dates
- Leave encashment from their real leave balance
- Notice pay and loan recovery in the same settlement
- Paid through the pay run, with a WPS SIF file
- GPSSA and ILOE in every UAE pay run
Questions, answered.
How is gratuity calculated in the UAE?
On your last basic salary. You get 21 days of basic pay for each of your first 5 years, and 30 days for each year after that, with part years counted in proportion. One day's pay is your monthly basic salary ÷ 30, and the total can't be more than 2 years of basic pay.
How much gratuity do I get after 5 years in the UAE?
105 days of basic pay, which is three and a half months. On a basic salary of AED 10,000 that's AED 35,000. After 10 years it's 255 days, or AED 85,000.
Do I get gratuity if I resign?
Yes, if you've worked at least one year. Since the 2021 Labour Law came into force in February 2022, resigning no longer cuts your gratuity: you get the same amount as when your employer ends the contract.
Is gratuity based on basic or total salary?
Basic salary only. Housing, transport and other allowances don't count. Use the basic salary on your contract or your last payslip.
Do I get gratuity if I worked less than one year?
No. You need at least one year of continuous service. After that, every extra day counts, so 18 months pays one and a half years of gratuity.
Does unpaid leave count towards gratuity?
No. Days of unpaid leave or absence don't count as service. Paid annual leave and paid sick leave do. Enter your unpaid days in the calculator and it takes them off.
When must my employer pay my gratuity?
Within 14 days of your contract ending, along with your other dues. If it's late, you can file a complaint with MOHRE.
Is there a maximum gratuity in the UAE?
Yes. Gratuity can't be more than 2 years of basic pay. Most people never reach it: it only applies after about 25 years with one employer.
Is this calculator official?
No. It's a free estimate from Leagrow, using the rules in Federal Decree-Law No. 33 of 2021, Article 51, checked on 26 October 2026. MOHRE has its own calculator, and your employer's final settlement is what you're paid.
Can Leagrow work out gratuity for my team?
Yes. Final settlement in Leagrow Payroll works out the UAE end-of-service gratuity, leave encashment, notice pay and loan recovery when someone leaves, and pays it through the pay run. It's free for up to 10 people, then $1 per person per month.
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