Calculate Your UAE End-of-Service Gratuity in 30 Seconds
Enter your basic salary and employment dates below to instantly estimate your statutory end-of-service gratuity under Federal Decree-Law No. 33 of 2021, Article 51 and Cabinet Resolution No. 1 of 2022, issued by the Ministry of Human Resources and Emiratisation (MOHRE).
Enter your basic wage only (excluding housing, transport, and other allowances). Per Article 51, gratuity is calculated on basic salary.
Days of unpaid leave taken during employment — excluded from service count per Article 51.
Enter your salary and dates above to calculate your gratuity.
How UAE Gratuity Is Calculated
The end-of-service gratuity formula under Article 51 of Federal Decree-Law No. 33 of 2021 uses a two-tier day-count system based on your basic wage only (excluding allowances):
| Years of Service | Daily Wage Rate | Calculation Base |
|---|---|---|
| First 5 years | 21 days of basic wage per year | Daily wage × 21 × years (max 5) |
| Beyond 5 years | 30 days of basic wage per year | Daily wage × 30 × years beyond 5 |
| Maximum cap | 2 years' total basic wage | Total cannot exceed 24 months' basic salary |
Daily wage = (Basic monthly salary × 12) ÷ 365 (as per MOHRE convention).
Worked Example
Scenario: An employee with a basic salary of AED 10,000/month who worked for 7 years.
- Daily wage: (10,000 × 12) ÷ 365 = AED 328.77
- First 5 years: 328.77 × 21 × 5 = AED 34,520.55
- Years 6–7 (2 years beyond 5): 328.77 × 30 × 2 = AED 19,726.20
- Subtotal: 34,520.55 + 19,726.20 = AED 54,246.75
- Cap (24 × 10,000): AED 240,000 (not exceeded)
- Final gratuity: AED 54,246.75
Who Qualifies for UAE Gratuity?
- Minimum 1 full year of continuous employment is required. No gratuity accrues before completing 12 months.
- All employees under UAE Labour Law (Federal Decree-Law No. 33 of 2021) are eligible, regardless of contract type.
- Basic wage only is used. Housing, transport, and other allowances are excluded unless your contract explicitly states otherwise.
- Unpaid leave days are excluded from the countable service duration.
Common Mistakes to Avoid
- Including allowances in the salary figure — only basic wage counts under Article 51
- Miscounting unpaid leave days — all unpaid leave must be excluded from service duration
- Assuming gratuity applies before 1 year — the 12-month minimum is absolute
- Forgetting the 24-month cap — total gratuity cannot exceed 2 years' basic wage
Frequently Asked Questions
Why did my gratuity come out lower than expected?
The most common reason is that the calculation uses basic salary only, not your total package. If your total compensation includes a large housing or transport allowance, your basic salary might be significantly lower than your take-home pay. Also check whether you've correctly excluded unpaid leave days and verify you're not hitting the 24-month cap.
Does gratuity include my housing allowance?
No. Under Article 51 of Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, the gratuity calculation is based on basic wage only. Housing, transport, and other allowances are excluded unless your employment contract explicitly states they form part of the basic wage.
What happens if I resign before completing 1 year?
You receive no gratuity. The minimum qualifying period is 1 full year of continuous employment under Article 51 of Federal Decree-Law No. 33 of 2021. This rule applies regardless of contract type (limited or unlimited) under the current law.
Is there a difference between limited and unlimited contracts under the new law?
No, not for gratuity purposes. Federal Decree-Law No. 33 of 2021 unified the treatment of limited and unlimited contracts. The gratuity formula (21 days for first 5 years, 30 days beyond) applies equally to both contract types.
Does unpaid sick leave affect my gratuity?
Yes, if the sick leave was unpaid. Unpaid leave of any kind — including unpaid sick leave beyond the entitled period — is excluded from the countable service duration. Paid sick leave within the entitled days does count toward your service period.
How soon must my employer pay my gratuity after I leave?
Within 14 days of the contract termination date. Under Article 51, employers must settle all end-of-service dues, including gratuity, within 14 days. Failure to do so may result in MOHRE penalties.
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This calculator and its content are based on Federal Decree-Law No. 33 of 2021 (Article 51) and Cabinet Resolution No. 1 of 2022, issued by the Ministry of Human Resources and Emiratisation (MOHRE). This tool provides an estimate of the statutory minimum gratuity and does not constitute legal advice. For specific cases, consult a licensed UAE employment lawyer or contact MOHRE directly at mohre.gov.ae.
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