Are unpaid leave days deducted when calculating gratuity in the UAE?

Yes. Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), administered by MOHRE, periods of unpaid leave are not counted as part of your service when calculating end-of-service gratuity. Gratuity is based on your actual completed, paid service, so if you took unpaid leave during the year, those days are subtracted from the service period that feeds the formula. Paid annual leave, by contrast, counts normally as service. The practical effect is usually small unless you took a lengthy unpaid break, but it can matter near the one-year eligibility threshold or when calculating a partial year. The rest of the formula is unchanged: 21 days' basic wage per year for the first five years, 30 days per year thereafter, on basic salary only, capped at two years' wages. Because the exact day count affects the result, MOHRE's official online calculator — which lets you account for service days — is the most reliable tool. If your employer over-deducts for leave or miscounts your service, you can raise it with MOHRE or compare verified UAE employment lawyers on LEXAI.