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.
Frequently Asked Questions
Minimum 1 year of continuous service is required for gratuity eligibility in UAE.
Gratuity is generally tax-free in UAE as there is no personal income tax.
For resignation before 5 years: 1/3 of gratuity if service is 1-3 years, 2/3 if 3-5 years, and full gratuity after 5 years.
In the UAE (Federal Decree-Law No. 33 of 2021), gratuity formula: daily wage = Basic Salary ÷ 30. First 5 years: 21 days × years × daily wage. After 5 years: (21 × 5 × daily wage) + (30 × additional years × daily wage). Maximum cap: 2 years of total basic salary. Minimum 1 year service required.
End of service in UAE 2025 continues under the same law: 21 days basic per year for the first 5 years, 30 days per year after 5 years, daily wage = basic ÷ 30, max 2 years total basic. Use our UAE gratuity calculator for an instant result. Check with HR for any future amendments.
In UAE, end of service (gratuity) is calculated on basic salary only: daily wage = basic ÷ 30; first 5 years use 21 days per year, after 5 years use 30 days per year; cap at 2 years total basic. Resignation before 5 years: 1/3 if 1–3 years, 2/3 if 3–5 years. Use our calculator for a quick breakdown.
The quickest way is to use our UAE gratuity calculator: enter basic salary (AED) and years of service for an instant amount and step-by-step breakdown. Manually: daily wage = basic ÷ 30; first 5 years: 21 × years × daily wage; after 5 years add 30 days per extra year; max 2 years total basic.
To compute UAE gratuity: (1) Basic salary ÷ 30 = daily wage. (2) First 5 years: 21 × years × daily wage. (3) After 5 years: add (21 × 5 × daily wage) + (30 × [years − 5] × daily wage). Cap at 2 years basic. Min 1 year service. Use our calculator for instant computation.
Gratuity in UAE 2025 is calculated the same way under Federal Decree-Law No. 33 of 2021: 21 days basic per year for first 5 years, 30 days per year thereafter, daily wage = basic ÷ 30, maximum 2 years total basic salary. For any 2025 law updates, confirm with your HR or the Ministry of Human Resources.
The current UAE gratuity formula (Federal Decree-Law No. 33 of 2021) is: 21 days of basic salary per year for the first 5 years, 30 days per year after 5 years; daily wage = basic ÷ 30; maximum 2 years of total basic salary; minimum 1 year of service. Calculated on basic salary only.
In the UAE, gratuity is calculated on basic salary only, not on full salary. Full salary typically includes basic plus housing, transport, and other allowances. The law requires gratuity to be based on basic salary; allowances are excluded.
Statutory UAE end-of-service gratuity is not a flat 20%—it is 21 days basic per year (first 5 years) and 30 days per year after, with a 2-year cap. '20% gratuity' might refer to a tip or a specific company policy; if your contract mentions a percentage, check with HR. Our calculator applies the official UAE formula.
Dubai follows UAE federal labor law. The gratuity system is the same: 21 days basic per year for first 5 years, 30 days per year after 5 years, basic salary only, max 2 years total basic, min 1 year service. Some free zones may have additional guidelines; confirm with your employer.
The current UAE gratuity law is Federal Decree-Law No. 33 of 2021 (and its regulations). It sets 21 days basic per year for first 5 years, 30 days per year after, basic only, max 2 years total basic, min 1 year. For 'new' 2025 amendments, check the official UAE labour law updates or your HR department.
UAE gratuity rules in 2025 continue under the existing formula: 21/30 days basic, 2-year cap, 1-year minimum. Any new rules or amendments would be published by the UAE authorities; always verify with your HR or the Ministry of Human Resources and Emiratisation for the latest.
For the latest UAE Labour Law update in May 2025 or any other date, refer to the official UAE government sources or the Ministry of Human Resources and Emiratisation. Current gratuity remains: 21 days basic per year (first 5 years), 30 days after, max 2 years basic, min 1 year service.
As of the current framework, UAE gratuity in 2025 is governed by Federal Decree-Law No. 33 of 2021. The formula is unchanged: 21 days basic per year for first 5 years, 30 days per year after, max 2 years total basic. For any new 2025 law or amendment, check official UAE labour law announcements or your HR.
Yes. Under UAE Federal Decree-Law No. 33 of 2021, end-of-service gratuity is mandatory for employees who complete at least 1 year of continuous service. Employers must pay it when employment ends (resignation or termination), subject to any reduction or forfeiture for cause under the law.
Yes. End-of-service benefit (gratuity) is mandatory in the UAE for private-sector employees who have completed at least 1 year of service. It must be paid within 14 days of the end of the employment contract, unless forfeited or reduced as permitted by law (e.g. gross misconduct).
You can check your gratuity by: (1) Asking your HR for a written end-of-service calculation. (2) Using our UAE gratuity calculator with your basic salary and years of service for an estimate. (3) Reviewing your employment contract and Federal Decree-Law No. 33 of 2021. Always get the final figure from your employer before leaving.
In the UAE, employers cannot refuse to pay gratuity if the employee has completed at least 1 year of service and is entitled under the law. Gratuity can be reduced or forfeited only in limited cases (e.g. gross misconduct) as specified in the labour law. Unlawful refusal can be challenged through labour dispute procedures.
If your employer refuses to pay gratuity in the UAE: (1) Request a written explanation and your end-of-service calculation. (2) Refer to your contract and Federal Decree-Law No. 33 of 2021. (3) Contact the Ministry of Human Resources and Emiratisation or the labour court in your emirate to file a complaint. Keep copies of your contract, payslips, and any correspondence.
This is about tipping (restaurants, services), not legal end-of-service gratuity. Tipping in the UAE is optional and a matter of custom; it is not legally required. End-of-service gratuity is the mandatory payment from your employer when you leave your job—a different concept. Use our calculator for that.