Gratuity calculator UAE (end of service)

End-of-service gratuity is a lump sum that private-sector employers pay employees when their employment ends, as a reward for continuous service. It is set by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the UAE Labour Law) and its implementing regulations, which took effect in February 2022. It is separate from your final salary, unused leave and any other dues, which are paid alongside it.

1. Take your last basic monthly salary — basic pay only, without housing, transport or other allowances.
2. Work out the daily basic wage: basic salary ÷ 30.
3. For each of the first five years of service: daily wage × 21 days.
4. For each year after five years: daily wage × 30 days.
5. Part years count pro rata — 6 months is half a year.
6. Add the parts together and cap the total at 24 months of basic salary.

The calculator above does exactly this and shows each part, so you can check the figure against your employer's calculation.

How the 7-year example works: daily wage 10,000 ÷ 30 = AED 333.33. First five years: 333.33 × 21 × 5 = AED 35,000. Next two years: 333.33 × 30 × 2 = AED 20,000. Total AED 55,000.

Under the old law, employees on unlimited contracts who resigned early received a reduced share of gratuity. The current law, in force since February 2022, moved private-sector employees to fixed-term contracts and calculates gratuity on completed service without those resignation reductions. Your employer may still deduct amounts you legitimately owe them. Contracts and transitional cases differ, so check your own contract and MOHRE guidance for your situation.

• Employees with less than one year of continuous service.
• UAE and GCC nationals who are covered by pension schemes instead.
• Employees in free zones with their own regulations — for example, DIFC uses the DEWS savings scheme, and some other free zones apply their own rules.
• Government and semi-government employees under separate HR laws.
• Domestic workers, who fall under a separate law.

If you are unsure which rules apply, check with your HR department, your free zone authority or MOHRE.

Alongside gratuity, the employer should pay your salary up to the last working day, payment for unused annual leave, any notice-period pay owed, and other amounts in your contract such as commission or a repatriation ticket where applicable. The law requires final dues to be paid within 14 days of the end of employment. If they are not, you can file a complaint with MOHRE or the relevant free zone authority.

• Overtime calculator UAE — work out overtime pay at the legal rates.
• Loan calculator UAE — plan repayments if you are using gratuity to clear a loan.
• Mortgage calculator UAE — see how gratuity could work as a down payment.
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