Gratuity Calculator UAE
Calculate your official severance pay instantly with our verified UAE gratuity calculator 2026. Whether you need a gratuity calculator Dubai, Abu Dhabi, or an online gratuity calculator for private-sector employment across the seven Emirates, get accurate, confidential results computed strictly on your basic wage.
Salary & Service Inputs
Calculated under Article 51 of UAE Federal Decree-Law No. 33 of 2021
Under the repealed 1980 Labour Law, you would have suffered a resignation reduction penalty, receiving only AED 16,815.
Full Statutory Breakdown (Articles 51 & 53)
UAE Gratuity Payout Chart by Salary & Tenure
Instant statutory estimates for standard private-sector monthly basic salaries under Federal Decree-Law No. 33 of 2021.
| Monthly Basic | 1 Year | 2 Years | 3 Years | 5 Years | 7 Years | 10 Years |
|---|---|---|---|---|---|---|
| AED 5,000 | AED 3,500 | AED 7,000 | AED 10,500 | AED 17,500 | AED 27,500 | AED 42,500 |
| AED 8,000 | AED 5,600 | AED 11,200 | AED 16,800 | AED 28,000 | AED 44,000 | AED 68,000 |
| AED 12,000 | AED 8,400 | AED 16,800 | AED 25,200 | AED 42,000 | AED 66,000 | AED 102,000 |
| AED 15,000 | AED 10,500 | AED 21,000 | AED 31,500 | AED 52,500 | AED 82,500 | AED 127,500 |
| AED 20,000 | AED 14,000 | AED 28,000 | AED 42,000 | AED 70,000 | AED 110,000 | AED 170,000 |
| AED 25,000 | AED 17,500 | AED 35,000 | AED 52,500 | AED 87,500 | AED 137,500 | AED 212,500 |
| AED 35,000 | AED 24,500 | AED 49,000 | AED 73,500 | AED 122,500 | AED 192,500 | AED 297,500 |
Trusted by Employees & HR Professionals in the UAE
Read what professionals in Dubai, Abu Dhabi, and Sharjah say about our gratuity calculation engine.
“Under the 2021 labour reforms, employees had confusion about resignation penalties. This calculator aligns 100% with our MOHRE payroll audit sheets. It is our go-to link for exit interviews.”
“I recently completed 4 years and resigned with a 60-day notice. My company’s initial HR estimate had an old 1980 reduction. Using this tool and citing Article 51 helped me get my full AED 28,000 settlement!”
“The breakdown showing Tier 1 (21 days) vs Tier 2 (30 days) and the 24-month cap makes it remarkably easy to budget end-of-service gratuities for our multi-national staff.”
Gratuity Calculation on Basic Salary vs. Gross Remuneration
Under Article 51(2) of Federal Decree-Law No. 33 of 2021, end-of-service gratuity is calculated strictly on the employee's last basic wage. Allowances for accommodation, conveyance, utilities, or annual flight stipends are legally excluded from the calculation baseline.

- Fixed Basic Salary recorded in your MOHRE Electronic Labour Contract
- Daily wage rate computed as
Basic Salary ÷ 30 - Pro-rata adjustments for fractions of completed service years
- Housing & Accommodation Allowance
- Transportation, Fuel & Travel Allowance
- Performance Bonuses & Discretionary Commissions
- Overtime Compensation & Annual Leave Allowances
How UAE Gratuity Works Under Federal Decree-Law No. 33 of 2021
On 2 February 2022, the UAE enacted landmark labour reforms replacing the 1980 statute. Here are the core statutory principles governing your final payout.
1-Year Threshold & Tiered Accrual
Under Article 51, you must complete at least 1 continuous year of service. For the first 5 years, you earn 21 days' basic wage per year. Each year beyond 5 years yields 30 days' basic wage.
Learn service period rulesResignation Reduction Abolished
Under the old 1980 law, employees resigning on unlimited contracts suffered 1/3 or 2/3 gratuity cuts. The 2021 law abolished this: resigning employees receive 100% full gratuity if they complete 1 year and serve contractual notice.
Compare contract typesStatutory 2-Year Cap & 14-Day Deadline
Article 51(3) caps the maximum gratuity at 2 years' basic wage (24 months). Article 53 strictly commands employers to disburse all gratuity and end-of-service dues within 14 days of termination.
Check settlement & capComprehensive UAE Gratuity Guides & Legal Resources
Explore in-depth documentation covering statutory labour articles, calculation formulas, length of service requirements, and total final settlement rules.
UAE Gratuity Law & Article 51
Full analysis of Federal Decree-Law No. 33 of 2021. Learn who is eligible for gratuity in the UAE and what employees are legally entitled to receive.
Read Legal GuideCalculation Formulas & Worked Examples
Step-by-step mathematical walkthroughs of the 21-day and 30-day basic salary tiers, daily wage formulas, and pro-rata calculations for 2, 4, and 5 years.
View 7 ExamplesService Period & Length of Service
How continuous tenure is determined under UAE law: completing the mandatory 1-year threshold, probation inclusion, and unpaid leave deductions.
Explore Eligibility RulesLimited vs Unlimited Contracts
Confused about how to calculate gratuity for unlimited contracts? Learn how the 2021 law unified contracts and abolished historical resignation cuts.
Read Contract AnalysisMaximum Gratuity Limit & Settlement
Calculate your total lump sum exit package: statutory 2-year cap under Article 51(3), unused annual leave encashment, and the mandatory 14-day payment rule.
Audit Final SettlementExcel Formula & Template Download
Download our free automated Excel gratuity spreadsheet with built-in tiered formulas, daily wage divisors, and pro-rata rounding.
Download SpreadsheetUAE Gratuity Calculation Examples & Case Studies
Examine how Federal Decree-Law No. 33 of 2021 applies to probation departures, 3-year resignations, 7+ year senior tenures, and part-time employment models.
Short Service (< 1 Year)
8 months of full-time service with AED 12,000 monthly basic wage.
0 AED (Ineligible: Under Article 51, minimum 1 year of continuous service is required).
3 Years Full-Time (Resignation)
Completed 3 full years with AED 10,000 monthly basic wage. Resigned with proper notice under 2021 law.
AED 21,000 (3 yrs × 21 days × (10,000/30) = AED 21,000. No reduction under modern 2021 law!).
7.5 Years Service (Tier 1 + Tier 2)
7 years and 6 months of continuous service with AED 18,000 monthly basic wage.
AED 108,000 (5 yrs @ 21 days = 105 days + 2.5 yrs @ 30 days = 75 days → 180 days total).
Part-Time Contract (20 hrs/week)
4 years of part-time employment (1,040 annual hours vs 2,080 full-time hours) with AED 8,000 basic wage.
50% of full-time gratuity per Article 30 of Cabinet Resolution No. 1 of 2022.
25 Years Tenure (2-Year Statutory Cap)
25 years of service with AED 25,000 monthly basic wage, illustrating the statutory cap under Article 51(3).
Capped at AED 600,000 (Exactly 24 months of basic salary).
All formulas, statutory caps, and eligibility criteria on this platform are strictly derived from official UAE federal legislations and ministerial decrees. We do not use third-party assumptions or unverified rules.
Foreign full-time workers completing 1+ year continuous service receive 21 days basic wage/yr for first 5 years, and 30 days basic wage/yr for subsequent years, not to exceed 2 years total basic salary.
Employers must settle all worker dues within 14 calendar days from contract severance.
Part-time gratuity equals (Contracted Annual Hours ÷ Full-Time Annual Hours) multiplied by Full-Time Equivalent Gratuity.
Employers enrolled in the voluntary savings scheme contribute monthly into licensed funds (5.83% for first 5 yrs, 8.33% thereafter). Traditional lump sum does not apply to participating workers.
UAE End of Service Gratuity Rules & FAQs
Legal clarifications grounded in UAE Federal Decree-Law No. 33 of 2021 and official MOHRE labour guidance.
For exactly 5 completed years of continuous service in the UAE mainland private sector, you receive 21 days of basic wage for each year (5 × 21 = 105 days of basic salary). For example, if your monthly basic salary is AED 10,000, your daily wage is AED 333.33 (10,000 ÷ 30), and your 5-year gratuity is exactly AED 35,000 (105 × 333.33). Under Federal Decree-Law No. 33 of 2021, you receive 100% full entitlement whether you resigned or were terminated, provided statutory notice is observed.
Official Legal Disclaimer & Scope of Application
This UAE Gratuity Calculator is an automated computation tool built strictly according to statutory standards codified under Federal Decree-Law No. 33 of 2021 (Regulation of Labour Relations) and Cabinet Resolution No. 1 of 2022. It is provided for personal evaluation, budgeting, and general estimation purposes only.
Individual contracts may carry explicit clauses, pre-existing valid agreements, non-compete terms, or approved alternative workplace savings funds (Cabinet Resolution No. 96 of 2023). For official labor disputes, file a grievance via the MOHRE Smart App or call the toll-free helpline at 600 590 000.