United Arab Emirates pack
UAE Gratuity Calculator (Private Sector)
Work out the end-of-service gratuity for a private-sector employee in the UAE: 21 days of basic wage for each of the first five years and 30 days for each year after, capped at two years' wage (Federal Decree-Law No. 33 of 2021, Article 51).
For mainland private-sector employees (and free zones that follow the federal Labour Law). DIFC and ADGM have their own employment laws, and UAE nationals are covered by pensions law instead.
- Gratuity
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- Days of basic wage earned
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- Daily basic wage (monthly ÷ 30)
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- If your employer uses a 365-day year (× 12 ÷ 365)
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How it is calculated
- No gratuity for less than one year of continuous service.
- Days of wage = 21 × years served up to 5 + 30 × years served after 5 (part years counted in proportion)
- Gratuity = daily basic wage × days of wage, at most 24 × monthly basic wage (two years' wage)
- Daily basic wage = monthly basic ÷ 30 (the usual practice); the 365-day-year figure is shown for comparison.
- Service = years + months ÷ 12 + days ÷ 365, excluding days of unpaid leave.
Worked example
Basic wage AED 7,000 a month, 7 years of service.
| You enter | |
|---|---|
| Last basic monthly wage | AED 7,000 |
| Years of service | 7 |
| Plus months | 0 |
| Plus days | 0 |
| You get | |
| Gratuity | AED 38,500 |
| Days of basic wage earned | 165 days |
| Daily basic wage (monthly ÷ 30) | AED 233.33 |
| If your employer uses a 365-day year (× 12 ÷ 365) | AED 37,972.6 |
For 7 years of service you earn 165 days of basic wage: AED 38,500 at a daily wage of AED 233.33.
Questions
Is gratuity on basic or full salary?
On the last basic wage only. Housing, transport and other allowances are not included.
Does unpaid leave count?
No. Days of unpaid absence are not counted in the service period, so subtract them before entering your years, months and days.
Why two figures?
The law sets the number of days (21 or 30 per year). Most employers and MOHRE guidance turn the monthly basic into a daily wage by dividing by 30; some divide a year's basic by 365. The difference is small; ask your employer which they use.
Sources and checks
Last checked: 15 October 2026. This calculator passes 7 automatic tests before every release.
Your numbers never leave your device: the calculation runs in your browser and nothing you type is sent or stored.
Your contract, unpaid leave, part-time work (pro-rated under Cabinet Resolution No. 1 of 2022) and money you owe the employer can change the amount. Employers must pay within 14 days of the contract ending. For a dispute, contact MOHRE. This is an estimate, not legal advice. Results are estimates for information only and are not financial, tax or legal advice. Check important figures with a qualified professional before you act on them.