How UAE end-of-service gratuity is calculated
Under Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations, a full-time foreign employee who has completed one year or more of continuous service gets gratuity based on their last basic wage:
- First five years: 21 days' wage for each year.
- After five years: 30 days' wage for each year.
- Parts of a year count in proportion, once one year of continuous service is complete.
- Unpaid absence days are not counted as service.
- The total can never exceed two years' wage.
This calculator takes a day's wage as monthly basic salary ÷ 30, and caps the total at 24 months of basic salary.
Resignation under the new law
Decree-Law 33/2021 has no reduction for resignation. The old law (Federal Law 8 of 1980) cut or cancelled the gratuity of employees who resigned before five years of service. So this calculator gives the full gratuity whether you resigned, your contract ended or you were dismissed, as long as you served at least one year.
Example
8 years on a basic salary of AED 10,000: a day's wage is AED 333.33, so (5 × 21 × 333.33) + (3 × 30 × 333.33) = 35,000 + 30,000 = AED 65,000, whether you resigned or the contract ended.
FAQ
Is UAE gratuity based on basic salary only?
Yes. It uses the last basic wage you were entitled to. Allowances such as housing and transport are not included.
Do I lose part of my gratuity if I resign?
Not under the current law, as long as you completed one year of continuous service. Under one year there is no gratuity, whatever the reason the contract ended.
When must gratuity be paid?
Within 14 days of the contract ending, together with wages and other dues (Article 53). The employer may deduct amounts you owe under the law or a court judgment.
Does this apply to UAE nationals?
No. Emiratis are covered by the pensions and social security legislation. This calculator is for full-time foreign employees in the private sector.
This is an estimate. It does not cover part-time or flexible work, the DIFC and ADGM free zones (each has its own employment law), or employers that moved to the alternative savings scheme. To be sure, check with MOHRE or u.ae.