Interactive Tool
UAE Gratuity Calculator
Estimate based on Federal Decree-Law No. 33 of 2021. Actual amounts may vary. Consult your employer or a labour lawyer for your specific situation.
Use this free calculator to estimate your UAE end of service gratuity. Enter your basic salary and length of service to get an instant estimate based on Federal Decree-Law No. 33 of 2021.
How United Arab Emirates gratuity is calculated
Under UAE labour law, employees who complete at least one year of continuous service are entitled to an end of service gratuity based on their basic salary.
Rules under Federal Decree-Law No. 33 of 2021:
- Less than 1 year of service: no entitlement
- 1 to 5 years: 21 calendar days of basic salary per year
- Over 5 years: 30 calendar days of basic salary per year (for years beyond 5)
- Gratuity is capped at 2 years of total basic salary
- Resignation with 1-3 years on unlimited contract: 1/3 of calculated amount
- Resignation with 3-5 years on unlimited contract: 2/3 of calculated amount
- Resignation after 5+ years: full entitlement regardless of contract type
- Calculated on basic salary only (excludes housing, transport, and other allowances)
Example calculation
An employee with a basic salary of AED 15,000 who is terminated after 7 years and 6 months:
| Daily rate | AED 15,000 / 30 = AED 500/day |
| First 5 years | 5 x 21 x AED 500 = AED 52,500 |
| Remaining 2.5 years | 2.5 x 30 x AED 500 = AED 37,500 |
| Total gratuity | AED 90,000 |
Frequently asked questions
- Is gratuity mandatory in United Arab Emirates?
- Yes. End of service gratuity is a legal entitlement under Federal Decree-Law No. 33 of 2021. Employers cannot waive or reduce it. If your employer refuses to pay, you can file a complaint with the Ministry of Human Resources (MOHRE).
- Is gratuity calculated on basic salary or total salary?
- Gratuity is calculated on basic salary only. This excludes housing allowance, transport allowance, phone allowance, and any other benefits. If your salary is a single lump sum with no breakdown, the entire amount may be considered basic salary. Check your employment contract.
- Do I get gratuity if I resign?
- Yes, but the amount may be reduced. If you resign with 1-3 years on an unlimited contract, you receive 1/3 of the calculated gratuity. With 3-5 years, you get 2/3. After 5 years, you receive the full amount regardless of resignation.
- When should my employer pay gratuity?
- Your employer must pay gratuity as part of your final settlement within 14 days of your last working day. If they delay, you can file a complaint with the labour authority.
- Is gratuity taxed in United Arab Emirates?
- No. United Arab Emirates does not impose personal income tax, so your gratuity is received in full. However, if you are a tax resident of another country (e.g., UK, India), you may need to declare it as income in your home country.
Official source
For the full legal text, see: Federal Decree-Law No. 33 of 2021.