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UAE Gratuity Calculator 2026

Calculate your UAE end-of-service gratuity from your basic salary and length of service. Under Article 51 of Federal Decree-Law No. 33 of 2021, an eligible private-sector full-time expatriate employee who completes one year of continuous service receives 21 days of basic wage for each of the first five years and 30 days for each year after that, capped at two years' wage. Part years count proportionally and unpaid absence is excluded.

Step 1 of 3

Your employment details

Article 51 covers full-time private-sector employment. Part-time, temporary and flexible patterns are calculated pro rata under separate Cabinet rules.

UAE nationals accrue pension under GPSSA rather than end-of-service gratuity.

Start date on the left, last working day on the right.

Step 2 of 3

Your salary

Basic wage only. Do not include housing, transport, commission or any other allowance — gratuity is calculated on the last basic wage.

Advanced options

Unpaid absence is excluded from the service period. Leave at zero if it does not apply.

Step 3 of 3

Adjust and recalculate

The result updates as you type.

Estimated end-of-service gratuity

AED 0

Enter your details to see the estimate.

Service periodGratuity
First 5 yearsAED 0
Remaining yearsAED 0
TotalAED 0
Daily basic wageAED 0
Service counted0 years
Maximum under the capAED 0

Calculated in your browser. Your salary never reaches our servers, and nothing you type here creates a record.

Disclaimer. This calculator provides an estimate based on UAE Federal Labour Law provisions for eligible private-sector full-time employees. Actual end-of-service entitlements may vary depending on employment status, contract type, work pattern, unpaid absence, reason for termination, applicable legislation and other circumstances. It is provided for information only and is not legal advice. For a real settlement, check with MOHRE or take professional advice.

The rule

How is gratuity calculated in the UAE?

Gratuity is end-of-service pay owed to an eligible private-sector employee when employment ends. Article 51 of Federal Decree-Law No. 33 of 2021 sets it out in four parts.

01One year to qualify

An eligible full-time expatriate employee must complete at least one year of continuous service. Below that, no gratuity is due under Article 51.

0221 days for the first five years

For each of the first five years of service, 21 days of the last basic wage. Five full years therefore earns 105 days of basic pay.

0330 days for every year after

From year six onward the rate rises to 30 days of basic wage per year, which is why long service is worth disproportionately more.

04Capped at two years' wage

However long the service, the total end-of-service benefit cannot exceed two years' wage. Very long service reaches this ceiling and stops.

Show the working

The UAE gratuity calculation formula

Everything the calculator does, written out. Run it by hand if you want to check the answer.

Daily basic wage

monthly basic salary ÷ 30 — a month is treated as 30 days regardless of the calendar.

Service period

(end date − start date) − unpaid days, converted to years. Part years count proportionally, so five years and six months is 5.5 years rather than five or six.

First five years

daily basic wage × 21 × years (max 5)

Each year after five

daily basic wage × 30 × (years − 5)

The cap

total = MIN(calculated gratuity, monthly basic salary × 24)

Worked example. A basic salary of AED 10,000 gives a daily basic wage of AED 333.33. Seven full years of service earns 21 × 333.33 × 5 = AED 35,000 for the first five years, plus 30 × 333.33 × 2 = AED 20,000 for the remaining two — AED 55,000 in total. The cap for that salary is AED 240,000, so it does not apply.

The question everyone gets wrong

Is gratuity calculated on basic salary or total salary?

On basic salary. Gratuity is calculated on the last basic wage only. Allowances are excluded, and that single point is the difference between an accurate estimate and one that is far too high.

What counts towards the gratuity calculation
ComponentCounts towards gratuity?
Basic wageYes — this is the whole basis
Housing allowanceNo
Transport allowanceNo
Commission and bonusesNo
OvertimeNo
Any other allowanceNo

If a contract shows AED 15,000 total with AED 9,000 basic, the gratuity is worked out on AED 9,000. Check the basic figure on the employment contract rather than the payslip total.

At a glance

UAE gratuity examples by salary and service

Every figure below comes from the same engine that powers the calculator above, using whole years of service.

UAE gratuity by basic salary and years of service
Basic salary1 year2 years3 years5 years7 years10 years15 years
AED 3,000AED 2,100AED 4,200AED 6,300AED 10,500AED 16,500AED 25,500AED 40,500
AED 5,000AED 3,500AED 7,000AED 10,500AED 17,500AED 27,500AED 42,500AED 67,500
AED 8,000AED 5,600AED 11,200AED 16,800AED 28,000AED 44,000AED 68,000AED 108,000
AED 10,000AED 7,000AED 14,000AED 21,000AED 35,000AED 55,000AED 85,000AED 135,000
AED 15,000AED 10,500AED 21,000AED 31,500AED 52,500AED 82,500AED 127,500AED 202,500
AED 20,000AED 14,000AED 28,000AED 42,000AED 70,000AED 110,000AED 170,000AED 270,000
AED 30,000AED 21,000AED 42,000AED 63,000AED 105,000AED 165,000AED 255,000AED 405,000

Rounded to the nearest dirham. Assumes continuous full-time service with no unpaid absence, and that the two-year cap has not been reached.

Frequently asked questions

UAE gratuity questions

How many days of gratuity do you get after 5 years?

Twenty-one days of basic wage for each of the first five years, which is 105 days in total. From year six onwards the rate rises to 30 days of basic wage for each additional year. Someone with seven years of service therefore earns 105 days for the first five plus 60 days for the last two, or 165 days of basic pay.

What happens if I worked for less than one year?

No gratuity is due. Under Article 51 an eligible foreign full-time employee must complete at least one year of continuous service to qualify for end-of-service gratuity. Other entitlements such as accrued annual leave may still be payable.

Is gratuity calculated on basic salary or total salary?

On the last basic wage only. Housing, transport, commission, bonuses and overtime are all excluded. If your contract shows AED 15,000 total made up of AED 9,000 basic plus allowances, the calculation runs on AED 9,000.

Does unpaid leave affect gratuity?

Yes. Unpaid absence is excluded from the service period, so a long period of unpaid leave shortens the service used in the calculation. Use the advanced option in the calculator to subtract those days.

Is there a maximum gratuity amount?

Yes. The total end-of-service benefit cannot exceed two years’ wage. At a basic salary of AED 20,000 the ceiling is AED 480,000, which is reached at roughly 26 years of service. Beyond that the figure stops rising.

Do UAE nationals get gratuity?

Not under Article 51. UAE and GCC nationals accrue pension entitlements through the General Pension and Social Security Authority rather than end-of-service gratuity, and employer and employee contributions are made throughout employment instead.

How is a partial year counted?

Proportionally, once the first year is complete. Five years and six months counts as 5.5 years, not five and not six. The calculator works from your actual dates rather than asking you to round.

Does the calculator store my salary?

No. The whole calculation runs in your browser using JavaScript. Nothing you type is sent to our servers, stored, or used to create a lead record. You can disconnect from the internet and it will still work.

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