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UAE Gratuity Calculator
Free tool. Calculates end-of-service gratuity for private-sector employees in the UAE under Federal Decree-Law No. 33 of 2021. No sign-up, no data sent to our servers.
How UAE gratuity is calculated
Under Federal Decree-Law No. 33 of 2021 — the UAE's unified private-sector labour law in effect since 2 February 2022 — end-of-service gratuity is calculated on your BASIC monthly salary only. Housing allowance, transport allowance, and any other variable allowances are excluded from the calculation base.
For each of the first 5 years of continuous service, you accrue 21 days of basic salary. From year 6 onward, you accrue 30 days of basic salary per year. Partial years are pro-rated — a 7-month period in your sixth year contributes (7/12) × 30 days of basic salary.
Total gratuity is capped at 2 years of basic salary, regardless of total service length. The cap protects very-long-service employees from inflated payouts under fixed-term contract durations that the new law replaced.
The calculator assumes you complete your contract or your employer terminates without cause. Resignations under pre-2022 unlimited-term contracts followed a reduction table (one-third for 1-3 years, two-thirds for 3-5 years, full for 5+ years) — that legacy regime is rare today but the result block links you to a verified UAE labour lawyer if your case predates the unified contract era.
Frequently asked questions
Should I use my basic salary or total package?
- Basic salary only. Federal Decree-Law 33/2021 Article 51 excludes allowances (housing, transport, education, etc.) from the gratuity base. Your contract should state the basic salary separately — use that number.
Does it matter if I resigned or was let go?
- Under the new unified contract regime (since 2 February 2022), gratuity is calculated the same way whether you complete the contract, resign, or are terminated without cause. Pre-2022 unlimited-term contracts had a different reduction table for resignations — if your contract pre-dates that, speak to a UAE labour lawyer.
Why is my result capped at 2 years of salary?
- Article 51 of Federal Decree-Law 33/2021 explicitly caps total gratuity at 2 years of basic salary. The cap activates around 30 years of service at typical formula rates.
Do I get gratuity if I worked less than a year?
- No. UAE law requires at least 1 full year of continuous service to be entitled to any gratuity. Less than 12 months → 0.
My employer is refusing to pay. What do I do?
- File a complaint with the Ministry of Human Resources & Emiratisation (MoHRE). You can also use the calculator output as a starting figure when speaking to a verified UAE labour lawyer about a Labour Court claim — see the CTA below.
This is an estimate, not legal advice
The calculator implements the standard formula for private-sector employees under Federal Decree-Law No. 33 of 2021. Specific scenarios (free-zone employers, government employees, domestic workers, dispute settlements, or pre-2022 unlimited-term contracts) may apply different rules. For any decision that depends on the exact figure, consult a verified UAE labour lawyer.
Need a verified UAE labour lawyer?
Connect directly with bar-licensed UAE specialists who handle gratuity disputes, MoHRE complaints, and Labour Court claims. Free to browse the directory; message a lawyer directly.
Authoritative source:Federal Decree-Law No. 33 of 2021 — Regulation of Employment Relationships