United Arab Emirates Gratuity Calculator

Calculate your end-of-service gratuity for United Arab Emirates. Free, accurate calculator based on United Arab Emirates labor laws.

Calculate Your Gratuity

Basic salary only (excluding allowances)

About United Arab Emirates Gratuity

United Arab Emirates gratuity calculation is based on local labor laws and regulations.

Calculation Formula

21 days for first 5 years, 30 days after

Minimum service required: 1 year

UAE gratuity calculation based on Federal Decree-Law No. 33 of 2021.

What is Gratuity in UAE?

Gratuity in the UAE is a mandatory end-of-service benefit paid by employers to employees when they leave their job after completing at least 1 year of continuous service.

It is governed by Federal Decree-Law No. 33 of 2021 and applies to all private-sector employees in the UAE.

Gratuity is calculated based on basic salary only (excluding allowances) and varies based on years of service.

UAE Gratuity Calculation Formula

Formula

21 days of basic salary per year for the first 5 years, and 30 days per year after 5 years

  • Daily wage = Basic Salary ÷ 30
  • First 5 years: 21 days × years of service × daily wage
  • After 5 years: (21 days × 5 years) + (30 days × additional years) × daily wage
  • Maximum cap: 2 years of total basic salary (720 days)

Minimum service: 1 year

Gratuity Calculation Examples

Example: 3 Years Service

Basic Salary: AED 10,000/month

Years of Service: 3 years

Calculation:

Daily wage = 10,000 ÷ 30 = 333.33 AED. Gratuity = 21 days × 3 years × 333.33 = 21,000 AED

Example: 7 Years Service

Basic Salary: AED 15,000/month

Years of Service: 7 years

Calculation:

First 5 years: 21 days × 5 × 500 = 52,500 AED. Next 2 years: 30 days × 2 × 500 = 30,000 AED. Total: 82,500 AED

Tips & Best Practices

📋 Keep Employment Records

Maintain copies of your employment contract, salary slips, and service certificates. Essential for claiming gratuity.

💰 Basic Salary Only

UAE gratuity is calculated only on basic salary, excluding housing, transport, and other allowances.

Calculate Before Resigning

Use our calculator before making career decisions. Resignation before 5 years may reduce gratuity amount.

Verify with HR

Always verify the final amount with your HR department before leaving.

Frequently Asked Questions

Minimum 1 year of continuous service is required for gratuity eligibility in UAE.
Gratuity is generally tax-free in UAE as there is no personal income tax.
For resignation before 5 years: 1/3 of gratuity if service is 1-3 years, 2/3 if 3-5 years, and full gratuity after 5 years.