UAE Gratuity Calculator
Calculate your end-of-service benefits under UAE Labour Law (Federal Decree-Law No. 33 of 2021). Covers limited and unlimited contracts, resignation vs. termination, DIFC/ADGM jurisdictions, and unpaid leave deduction.
What's New in 2026
- Savings scheme expansion: The DIFC DEWS (Employee Workplace Savings) scheme continues to expand. Employees in DIFC are not entitled to traditional MOHRE gratuity — they are enrolled in DEWS instead.
- Unlimited contracts phased out: New employment contracts since February 2022 must be limited (fixed-term). Existing unlimited contracts remain grandfathered under legacy rules for gratuity purposes.
Basic salary only — exclude housing, transport & other allowances.
Can be decimal (e.g. 3.5 = 3 years 6 months).
Deducted from total service period before calculation.
Your Gratuity
Total gratuity
AED 21,000.00
• 21 days per year (first 5 years) + 30 days per year (beyond 5 years) × daily wage (FDL 33/2021, Art. 51).
• Gratuity is based on BASIC salary only — allowances (housing, transport, etc.) are excluded.
• Employer must pay gratuity within 14 days of contract end (FDL 33/2021, Art. 53).
Based on UAE Law▼
UAE Gratuity Rules Explained
- Eligibility: Minimum 1 year of continuous service (Art. 51, FDL 33/2021).
- First 5 years: 21 days of basic salary per year.
- Beyond 5 years: 30 days of basic salary per year.
- Cap: Total gratuity cannot exceed 2 years of basic salary (Art. 51).
- Basic salary only: Housing, transport, and other allowances are excluded.
- Payment deadline: Employers must settle gratuity within 14 days of contract end (Art. 53).
- Misconduct dismissal: Zero gratuity entitlement under Article 120 (theft, fraud, assault, serious breach).
Under the updated 2022 UAE Labour Law, unlimited contracts are no longer issued — all new contracts must be limited (fixed-term). For legacy unlimited contract holders who resigned, a sliding-scale reduction applies for service periods under 5 years.