Basic salary only (excluding allowances)
Total Gratuity
AED 35,000
Daily Wage
AED 333
First 5 Years Portion
AED 35,000
| Years | Gratuity |
|---|---|
| 1 year | AED 7,000 |
| 3 years | AED 21,000 |
| 5 years(selected) | AED 35,000 |
| 10 years | AED 85,000 |
| 15 years | AED 135,000 |
| 20 years | AED 185,000 |
How is end-of-service gratuity calculated in the UAE?
Under UAE Labour Law (Federal Decree-Law No. 33/2021), gratuity is calculated based on your basic salary: 21 days' basic salary for each of the first 5 years of service, and 30 days' per year thereafter. The daily wage is calculated as basic monthly salary divided by 30.
What if I resign voluntarily?
Under the current UAE Labour Law (Federal Decree-Law No. 33/2021, effective Feb 2022), all contracts are fixed-term and employees receive full gratuity upon termination regardless of the reason — whether you resign, are terminated, or your contract ends. The old resignation reductions no longer apply.
Is there a maximum gratuity amount?
Yes, the total end-of-service gratuity is capped at 2 years' total salary (24 months of basic salary). This cap applies regardless of how many years you have worked. The cap is based on the most recent basic salary at the time of termination.
What about unlimited contracts vs limited contracts?
Under the new UAE Labour Law effective February 2022, all employment contracts are now limited-term (fixed-term) contracts with a maximum duration of 3 years, renewable. The distinction between limited and unlimited contracts has been eliminated. Gratuity calculations now follow the same rules for all contract types.
Does gratuity apply to free zone employees?
Most free zones follow federal UAE labour law for gratuity purposes. However, DIFC and ADGM have their own employment regulations. DIFC employees are enrolled in the DEWS (DIFC Employee Workplace Savings) scheme instead of traditional gratuity. Always check with your specific free zone authority.
MOHRE-Aligned: This calculator follows UAE Federal Decree-Law No. 33 of 2021 on Regulation of Labour Relations. For complex situations, consult MOHRE or a qualified legal advisor.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms