Free Legal Tool · Updated 2026

UAE Gratuity Calculator

End-of-service benefits for Mainland, DIFC and ADGM — built on the current law, with the full calculation shown. Most calculators online still apply rules repealed in 2022.

Decree-Law 33/2021 current Mainland · DIFC · ADGM Part-time & savings scheme Full working shown

Calculate your entitlement

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Mainland and most free zones (JAFZA, DMCC, RAKEZ…) follow Federal Decree-Law 33/2021.
AED
Basic salary only — exclude housing, transport and all other allowances.
AED
Basic + all allowances. Used to check the 50% basic-wage floor that applies in DIFC and ADGM.
First working day
Last working day
Part-time pro-rating
Gratuity is pro-rated against a 48-hour full-time week (Cabinet Resolution 1/2022, Art. 30).
Under the current law this does not change your gratuity.
Excluded from service length (Art. 51(4)).
Paid separately from gratuity, on basic salary.
The voluntary MOHRE savings scheme (Cabinet Resolution 96/2023).
Savings scheme
Gratuity stops accruing from this date; contributions accumulate instead.
Estimated gratuity
AED0

Why this calculator gives a different answer

Most UAE gratuity calculators online still ask whether your contract is “limited or unlimited” and reduce your gratuity by one-third or two-thirds if you resigned.

Both rules came from Federal Law No. 8 of 1980, which was repealed on 2 February 2022. Unlimited contracts no longer exist in the UAE, and Federal Decree-Law No. 33 of 2021 contains no reduction for resignation. An employee who resigns after one year receives the same gratuity as one who is dismissed.

If another calculator has quoted you a lower figure because you resigned, it is applying repealed law.

How gratuity is calculated

End-of-service gratuity is a statutory entitlement under Article 51 of Federal Decree-Law No. 33 of 2021. It accrues on basic salary only and requires at least one year of continuous service.

The formula
(21 or 30 days ÷ 30) × monthly basic salary × years of service
21 days for each of the first five years; 30 days for each year after. Parts of a year are prorated once one full year is complete.
Length of serviceEntitlementPer year
Under 1 yearNo gratuity entitlement—
1–5 years21 days’ basic salary per year0.70 × basic
Beyond 5 years30 days’ basic salary per year1.00 × basic
Capped at two years’ salary. However long the service, total gratuity cannot exceed the equivalent of 24 months (Article 51(6)).

Your gratuity cannot be forfeited for misconduct

Under the repealed 1980 law, dismissal for cause forfeited gratuity entirely. That is no longer the position. Article 39(1) of the current law lists the most severe disciplinary sanction available to an employer as “dismissal from service while preserving the Worker’s right to end-of-service gratuity”.

Even summary dismissal under Article 44 removes the notice period — not the gratuity. The only permitted reductions are amounts due by law or under a court judgment (Article 51(7)).

Mainland, DIFC and ADGM are three different systems

Mainland / free zonesDIFCADGM
MechanismAccrued gratuity paid at the endMonthly contributions to DEWS / a Qualifying SchemeGratuity, or an opt-in savings scheme
Accrual rate21 / 30 days per year5.83% of basic monthly (8.33% after 5 years)21 / 30 days per year
Qualifying period1 yearNone — from day one1 year
Basic salary floorNoneBasic ≥ 50% of total wageBasic ≥ 50% of total wage
Payment deadline14 days14 days (contributions by the 21st monthly)21 days

If you work in the DIFC, service before 1 February 2020 is preserved as old-style gratuity, and everything after is funded through DEWS contributions instead.

The 50% basic salary floor

In the DIFC and ADGM, an employee’s basic wage is treated as at least 50% of total remuneration for benefit purposes, regardless of how the contract splits it. This anti-avoidance rule has no mainland equivalent — which is why a mainland employee on a low basic and high allowances receives materially less.

Frequently asked questions

Does resigning reduce my gratuity?
No. Under Federal Decree-Law No. 33 of 2021, an employee who completes one year of continuous service receives full gratuity whether they resign or are dismissed. The one-third and two-thirds reductions came from Article 137 of the repealed 1980 law and no longer apply. Separately, an employee who leaves without serving notice may owe compensation in lieu of notice, which the employer can set off against the final settlement — but that is a separate debt, not a gratuity reduction.
Can my employer refuse gratuity because I was dismissed for cause?
No. Article 39(1) expressly preserves gratuity on dismissal, and Article 44 summary dismissal removes only the notice entitlement. Deductions are limited to amounts due by law or under a judgment.
Do limited and unlimited contracts still exist?
No. All employment contracts in the UAE private sector are now fixed-term. The limited/unlimited distinction was abolished on 2 February 2022, with a transition period for existing contracts. Any calculator still asking this question is applying repealed law.
I’m a UAE or GCC national — do I get gratuity?
Article 51(1) provides that national employees are covered by the pension and social security legislation rather than end-of-service gratuity. Contributions are made to the GPSSA (or the equivalent home-state scheme for GCC nationals) instead.
How is gratuity calculated for part-time work?
Article 30 of Cabinet Resolution No. 1 of 2022 pro-rates it by hours: annual contracted hours ÷ annual full-time hours × 100 gives a percentage, which is applied to the full-time gratuity figure. The one-year minimum still applies, and temporary work models are excluded.
What is the alternative savings scheme?
Cabinet Resolution No. 96 of 2023 created a voluntary scheme under which employers contribute 5.83% of basic salary monthly (8.33% after five years) into a regulated fund instead of accruing gratuity. Gratuity accrued before enrolment is preserved and calculated on the basic salary at the enrolment date — which is why a rising salary can make enrolment less favourable. The scheme is optional for employers and remains voluntary as at 2026.
Is unused annual leave paid separately?
Yes. Untaken accrued leave is encashed separately from gratuity, calculated on basic salary under Article 19(2) of Cabinet Resolution No. 1 of 2022.
How long does my employer have to pay?
Article 53 requires payment of wages and all other entitlements within 14 days of the end of the contract on the mainland. The DIFC applies the same 14-day deadline; ADGM allows 21 days.
How long do I have to bring a claim?
Federal Decree-Law No. 9 of 2024 extended the limitation period for labour claims from one year to two years from the date the entitlement falls due.
Does unpaid leave reduce my gratuity?
Yes. Article 51(4) excludes days of unpaid absence from the service period, and Article 33 confirms unpaid leave does not count toward length of service. It does not break continuity — the days are simply subtracted.

This calculator provides an estimate for general information only and does not constitute legal advice. Entitlements depend on the employment contract, the circumstances of termination and the applicable regime. Where a monthly salary is converted to a daily rate, this tool follows the market-standard divisor of 30. This publication does not provide any legal advice and is for information purposes only.