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UAE gratuity calculator

In the UAE, gratuity is 21 days’ wage for each of years 1–5, then 30 days’ wage for each year after 5, capped at 24 months’ wage, based on your last basic wage (allowances excluded) (Article 51, Federal Decree-Law No. 33 of 2021).

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Why is your service ending?

Your estimated gratuity

Enter your wage and service dates to see your gratuity and exactly how it is worked out.

Applies Federal Decree-Law No. 33 of 2021, Article 51. Results are estimates, not legal advice. Disclaimer

How it is calculated

  • Wage used: Last basic wage (allowances excluded).
  • Formula: 21 days’ wage for each of years 1–5, then 30 days’ wage for each year after 5, capped at 24 months’ wage.
  • Minimum service: 1 year of continuous service.
  • If you resign: Full, no reduction.
  • No reduction for resignation under the 2021 law, and the award is not forfeited on dismissal under Article 44.
  • Total gratuity cannot exceed two years’ wage. Days of unpaid absence do not count as service.
  • Employers enrolled in the voluntary savings scheme (Cabinet Resolution 96 of 2023) pay into a fund instead of this gratuity for enrolled staff.
  • The day’s wage uses basic ÷ 30, the method MOHRE applies; the law itself does not set a divisor.

Worked example

An employee on AED 8,000.00 a month worked from 1 January 2019 to 31 March 2026 (7 years 3 months) and the employer ended the contract:

Years 0–5: 21 days’ wage per yearAED 28,000.00
Years 5–7.25: 30 days’ wage per yearAED 18,016.44
GratuityAED 46,016.44

Gratuity by years of service: terminated vs resigned

On a wage of AED 8,000.00 a month, this is the award under Article 51 after each length of service, if the employer ends the contract and if you resign:

ServiceTerminatedResigned
1 yearAED 5,600.00AED 5,600.00
2 yearsAED 11,200.00AED 11,200.00
3 yearsAED 16,800.00AED 16,800.00
5 yearsAED 28,000.00AED 28,000.00
7 yearsAED 44,000.00AED 44,000.00
10 yearsAED 68,000.00AED 68,000.00
15 yearsAED 108,000.00AED 108,000.00
20 yearsAED 148,000.00AED 148,000.00

What to know in UAE

UAE gratuity under Article 51 of Federal Decree-Law 33 of 2021 is worked out on your last basic wage only, so housing, transport and other allowances do not count. Since the 2021 law, resigning no longer reduces the award, and you need at least one year of continuous service to qualify. The total can never exceed two years' wage, a cap long-serving staff reach after roughly 25 to 26 years.

Days of unpaid absence do not count as service, which is why the calculator lets you enter them. The day's wage uses basic ÷ 30, the method MOHRE applies; the law itself does not fix a divisor. Whether the two-year cap is measured on basic or total wage is not settled in every source, so we apply it to basic wage and say so.

Two groups fall outside this formula. Employers that join the voluntary savings scheme (Cabinet Resolution 96 of 2023) pay into a fund instead of gratuity for enrolled staff. The DIFC and ADGM free zones have their own employment laws and end-of-service rules, so this calculator follows the mainland law that covers most other free zones.

Common questions

How much is gratuity after 5 and 10 years in UAE?

On AED 8,000.00 a month: AED 28,000.00 after 5 years and AED 68,000.00 after 10 years when the employer ends the contract. Enter your own wage above for your figure.

How is gratuity calculated in UAE?

Under Article 51 of Federal Decree-Law No. 33 of 2021: 21 days’ wage for each of years 1–5, then 30 days’ wage for each year after 5, capped at 24 months’ wage, based on your last basic wage (allowances excluded).

Do I get gratuity if I resign in UAE?

Yes. Federal Decree-Law No. 33 of 2021 does not reduce gratuity when you resign once you have completed 1 year of service.

Is gratuity based on basic or total salary?

Last basic wage (allowances excluded). Check your contract for the registered basic wage.

Can I lose my gratuity if I am dismissed?

No. This law does not forfeit gratuity on dismissal, although the employer may deduct amounts you owe.

Who does this calculator cover?

Private-sector and free-zone employees (non-nationals). UAE nationals are covered by the pension law instead.

Is this the MOHRE gratuity calculator?

No. Wazzifai is independent and not affiliated with MOHRE, but it applies the same law (Article 51 of Decree-Law 33 of 2021) and the same day-rate method MOHRE uses (basic ÷ 30). For an official figure, use MOHRE’s own services.

Does it work for Dubai, Abu Dhabi and free zones like JAFZA?

Yes for Dubai, Abu Dhabi and every emirate, and for most free zones such as JAFZA, which follow the federal Labour Law. DIFC and ADGM have their own employment laws, so their end-of-service rules differ.

Further reading

Sources

More UAE tools

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