United Arab Emirates Gratuity Calculator
Calculate your end-of-service gratuity for United Arab Emirates. Free, accurate calculator based on United Arab Emirates labor laws.
Calculate Your Gratuity
Basic salary only (excluding allowances)
About United Arab Emirates Gratuity
United Arab Emirates gratuity calculation is based on local labor laws and regulations.
Calculation Formula
21 days for first 5 years, 30 days after
Minimum service required: 1 year
UAE gratuity calculation based on Federal Decree-Law No. 33 of 2021.
What is Gratuity in UAE?
Gratuity in the UAE is a mandatory end-of-service benefit paid by employers to employees when they leave their job after completing at least 1 year of continuous service.
It is governed by Federal Decree-Law No. 33 of 2021 and applies to all private-sector employees in the UAE.
Gratuity is calculated based on basic salary only (excluding allowances) and varies based on years of service.
UAE Gratuity Calculation Formula
Formula
21 days of basic salary per year for the first 5 years, and 30 days per year after 5 years
- Daily wage = Basic Salary ÷ 30
- First 5 years: 21 days × years of service × daily wage
- After 5 years: (21 days × 5 years) + (30 days × additional years) × daily wage
- Maximum cap: 2 years of total basic salary (720 days)
Minimum service: 1 year
Gratuity Calculation Examples
Example: 3 Years Service
Basic Salary: AED 10,000/month
Years of Service: 3 years
Calculation:
Daily wage = 10,000 ÷ 30 = 333.33 AED. Gratuity = 21 days × 3 years × 333.33 = 21,000 AED
Example: 7 Years Service
Basic Salary: AED 15,000/month
Years of Service: 7 years
Calculation:
First 5 years: 21 days × 5 × 500 = 52,500 AED. Next 2 years: 30 days × 2 × 500 = 30,000 AED. Total: 82,500 AED
Tips & Best Practices
📋 Keep Employment Records
Maintain copies of your employment contract, salary slips, and service certificates. Essential for claiming gratuity.
💰 Basic Salary Only
UAE gratuity is calculated only on basic salary, excluding housing, transport, and other allowances.
⏰ Calculate Before Resigning
Use our calculator before making career decisions. Resignation before 5 years may reduce gratuity amount.
✅ Verify with HR
Always verify the final amount with your HR department before leaving.