Interactive Tool
United Arab Emirates End-of-service gratuity
Estimate based on Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 51. Actual amounts depend on contract terms, leave taken, unpaid wages, and other adjustments. Consult your employer's HR or a licensed labour lawyer for your specific situation.
Use this free calculator to estimate your United Arab Emirates end-of-service gratuity. Enter your monthly basic salary and length of service for an instant estimate based on Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 51.
How United Arab Emirates end-of-service gratuity is calculated
Under the UAE Labour Law, an employee who completes at least one year of continuous service is entitled to end-of-service gratuity calculated on their basic salary.
Rules under Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 51
- Minimum 1 year of continuous service to qualify
- 1 to 5 years: 21 calendar days of basic salary per year
- Years 5 and above: 30 calendar days of basic salary per year
- Capped at 2 years of total basic salary
- Calculated on basic salary only (excludes housing, transport, and other allowances)
- Under the current law, new contracts are fixed-term; gratuity is paid in full at the end of the contract regardless of who initiates termination
- Legacy unlimited contracts (in force before 2 February 2023) follow the older reduction rules - speak to MOHRE or a labour lawyer if this applies to you
What counts as basic salary in United Arab Emirates?
UAE law calculates gratuity on basic salary only. Housing, transport, phone, and other allowances are excluded.
If your employment contract bundles a single salary figure with no separate basic/allowance breakdown, ask HR to confirm in writing how the basic salary will be calculated for end-of-service purposes before you sign.
Worked example
An employee with a basic salary of AED 15,000 leaving after 7 years and 6 months:
| Daily rate | AED 15,000 / 30 = AED 500/day |
| First 5 years | 5 × 21 × AED 500 = AED 52,500 |
| Remaining 2.5 years | 2.5 × 30 × AED 500 = AED 37,500 |
| Total gratuity | AED 90,000 |
Below the 2-year cap (AED 360,000), so no capping applies.
Frequently asked questions
Official source
For the full legal text, see: Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 51.
This page is general information, not legal advice. For your specific contract, consult a licensed labour lawyer or the relevant ministry.