UAE Gratuity Calculator
Calculate your UAE end-of-service gratuity under the 2021 Labour Law
Enter BASIC salary only — exclude housing, transport, and other allowances. Gratuity is calculated on basic pay.
Days of unpaid leave are not counted as service and are deducted from the period.
The final day of service. Defaults to today.
What is UAE Gratuity Calculator?
The UAE Gratuity Calculator works out your end-of-service benefit (EOSB) under Federal Decree-Law No. 33 of 2021, the current UAE Labour Law that replaced the old Federal Law No. 8 of 1980. You enter your basic monthly salary, your start date and last working day, and any unpaid leave days, and the tool instantly shows your total gratuity, your exact length of service, and a clear period-by-period breakdown. Under the new law the old distinction between limited and unlimited contracts is abolished, and so are the resignation-based reduction scales (the one-third and two-thirds cuts for resigning before five years) — every full-time employee who completes at least one year is now entitled to the full statutory gratuity regardless of who ended the contract. Gratuity is calculated on basic salary only, so allowances for housing, transport, and the like are excluded. Everything runs in your browser, so your salary details are never uploaded.
How to use UAE Gratuity Calculator?
Getting your gratuity estimate takes only a few seconds and updates live as you type:
- 1 Enter your basic monthly salary in AED. Use the basic figure from your contract — not the gross or total package — because gratuity is based on basic pay only.
- 2 Pick your start date and your last working day. The last day defaults to today, so for a resignation you are planning you can try different dates and watch the figure change.
- 3 Optionally enter any unpaid leave days. These are excluded from your service period, exactly as the law requires.
- 4 Read your result: the total gratuity, your service duration in years/months/days, the daily basic wage, and a breakdown splitting the first five years (21 days per year) from the years beyond (30 days per year). Use Copy or Print to save it.
Why use this tool?
End-of-service gratuity is often one of the largest single payments an employee in the UAE receives, yet the rules confuse people because the law changed. Many online figures still apply the abolished limited/unlimited contract split and the old resignation penalties, which produces the wrong number. This calculator follows the current Federal Decree-Law No. 33 of 2021 and its Executive Regulations exactly: a minimum of one full year of continuous service to qualify (Article 51); 21 days of basic wage for each of the first five years of service; 30 days of basic wage for each year beyond five; part-years after the first year pro-rated by the actual days worked; and a hard ceiling so the total can never exceed two years of basic wage. Because it recalculates live, it is ideal for planning a resignation, checking a final settlement your employer prepared, or budgeting your leaving date. It is free, needs no signup, and keeps your salary private in your browser.
Examples
With a basic salary of AED 10,000 and exactly 3 years of service, the daily wage is 10,000 × 12 / 365 = AED 328.77. Gratuity is 21 × 3 = 63 days × 328.77 = about AED 20,712.
On the same AED 10,000 basic, the first 5 years give 21 × 5 = 105 days and the next 2 years give 30 × 2 = 60 days — 165 days × 328.77 = about AED 54,247, well within the two-year cap.
An employee who leaves after 8 months has not completed one full year, so under Article 51 no gratuity is payable — the tool states this clearly instead of showing a misleading amount.
Frequently Asked Questions
Which law does this calculator use?
It uses UAE Federal Decree-Law No. 33 of 2021 (effective 2 February 2022) and its Executive Regulations, the current framework governing private-sector employment. The earlier Federal Law No. 8 of 1980 and its limited/unlimited contract rules no longer apply.
Is gratuity calculated on basic salary or total salary?
On basic salary only. Under Article 51, allowances such as housing, transport, and other benefits are excluded from the gratuity calculation. Always use the basic figure stated in your contract.
How many days of pay do I get per year?
Twenty-one (21) days of basic wage for each of the first five years of service, and thirty (30) days of basic wage for each year after that. Part-years beyond the first completed year are paid pro-rata based on the days actually worked.
Do I lose gratuity if I resign instead of being terminated?
No. The old reduction scale that cut gratuity to one-third or two-thirds when an employee resigned before five years was abolished. As long as you have completed at least one year of continuous service, you receive the full statutory gratuity whether you resign or are terminated.
Is there a maximum gratuity?
Yes. The total end-of-service gratuity cannot exceed the equivalent of two years of the employee's basic wage. If your calculated amount is higher, the cap is applied and the tool flags it.
How is unpaid leave treated?
Periods of unpaid leave do not count as part of your continuous service, so any unpaid leave days you enter are deducted from the total service period before the gratuity is calculated.
Is this legal advice?
No. This tool gives a good-faith estimate for guidance and planning. Final entitlements can depend on your specific contract, deductions, and settlement. For a binding figure, confirm with your employer or a qualified UAE legal professional.
Related Tools
Explore more free tools you might find useful