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UAE Gratuity Calculator

By Permitely Editorial · Last updated October 10, 2026 · How we check this page

Work out your end-of-service gratuity under Article 51 of the UAE Labour Law: 21 days of basic salary per year for the first five years, 30 days per year after that, capped at two years' wage.

Burj Khalifa and downtown Dubai
1
Last monthly BASIC salary (AED)

Basic salary only — exclude housing, transport and other allowances.

2
Length of service

Total continuous service in years and months. Unpaid absence does not count. Under one year, no gratuity is due.

3
Contract hours as a share of full time (%)

100 for a full-time contract. For part-time, divide your contract hours per year by full-time hours per year (Cabinet Resolution 1/2022, Art. 30).

Estimated end-of-service gratuity

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Read before relying on this

How the gratuity is worked out

Article 51 of the UAE Labour Law, as summarised by the UAE Government Portal, sets the gratuity for a full-time expatriate worker: nothing under one year of continuous service; 21 days' basic salary for each year of the first five years; 30 days' basic salary for each year after the first five; and in all cases no more than two years' wage in total. Part-years count in proportion once one year is complete.

The portal does not say how a day's wage is derived from the monthly basic. This calculator uses monthly basic ÷ 30 and shows the daily figure in the breakdown, so you can check it against your employer's statement.

Example: basic AED 10,000, 8 years. Daily wage AED 333.33. First five years 5 × 21 = 105 days; next three years 3 × 30 = 90 days; 195 days × AED 333.33 = AED 65,000, below the two-year cap of AED 240,000.

Worked figures for a monthly basic of AED 10,000 (day rate AED 333.33):

Years of serviceGratuity daysGratuity (AED)
1217,000
36321,000
510535,000
819565,000
1025585,000
20555185,000
30855240,000

At 30 years the 855 days would come to AED 285,000, so the two-year cap of AED 240,000 applies.

Part-time and other work patterns. Article 30 of Cabinet Resolution No. 1 of 2022 takes your contract hours per year as a percentage of full-time hours per year and applies that percentage to the full-time gratuity. At 50% and eight years on the same basic, that is AED 32,500. Temporary work of less than one year earns no gratuity.

The portal page these figures come from shows "Updated on: 12 Aug 2026".

Resignation, termination and deductions

The portal's summary of Article 51 gives one formula for every full-time expatriate worker who has completed a year of continuous service, and it does not distinguish between resigning and being terminated. This calculator therefore applies the same formula either way.

Your employer must pay all outstanding wages, other entitlements and the gratuity within 14 days of the contract ending, and may deduct from the gratuity any amounts you owe them. If your settlement is short or late, MOHRE handles labour complaints.

Frequently asked questions

When must my employer pay?

Within 14 days of the end of the contract: all outstanding wages, other entitlements and the gratuity. The employer may deduct from the gratuity any amounts you owe them.

Do allowances count?

No — only the last basic salary. Housing, transport, utilities and furniture allowances are excluded.

Is there a minimum service period?

Yes. Under one year of continuous service no gratuity is due. Once you complete a year, part-years count in proportion to the time served.

What about the savings scheme?

If your employer enrols you in MOHRE's voluntary Savings Scheme, it stops applying the traditional gratuity for you and must settle what accrued before enrolment. It then pays 5.83% of monthly basic into the fund for service under five years and 8.33% after five years (Ministerial Resolution 668 of 2023). This tool models the traditional gratuity.

Gratuity claim checklist (save your progress)

Tick each item as you prepare it. Progress is saved in this browser — nothing is uploaded. This is a preparation aid, not tax advice.

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Sources and official references: UAE Government Portal — End of service benefits for workers in the private sector (summary of Article 51 of the UAE Labour Law, Federal Decree-Law No. 33 of 2021; read 10 October 2026). The day counts, the five-year split, the one-year minimum, the two-year cap, the use of basic salary and the 14-day payment deadline are all taken from that page. It does not say how a day’s wage is derived, so the calculator uses monthly basic ÷ 30. Independent estimate, not legal advice; Emiratis, part-time workers, free-zone (DIFC/ADGM) employees and savings-scheme members follow other rules. Confirm with MOHRE or a licensed UAE labour lawyer.

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Disclaimer

This calculator provides an estimate for informational purposes only. It is not legal advice and does not represent your actual settlement.

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