BI CFO / UAE / UAE gratuity calculator
UAE gratuity calculator
End-of-service gratuity for private-sector employees under the 2021 Labour Law.
Short answer: 21 days of basic wage for each of the first 5 years of service, 30 days for each year after that, capped at 2 years' wage in total. Employees with less than 1 year of service get nothing. Use the calculator for your exact figure.
Enter your figures to see the result.
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Ask an accountantWorked example: 7.75 years at AED 10,000 basic
An employee with a basic salary of AED 10,000 a month, employed from 1 January 2019 to 30 September 2026.
| Daily basic wage (monthly ÷ 30) | AED 333.33 |
| First 5 years at 21 days a year | AED 35,000 |
| Remaining service at 30 days a year | AED 27,534 |
| Gratuity payable | AED 62,534 |
Common questions
How is UAE gratuity calculated?
21 days of basic wage for each of the first five years and 30 days for each year after, with part years pro rata. Employers usually take the daily wage as monthly basic divided by 30; some use basic times 12 divided by 365, which gives about 1.4% less. The calculator shows both.
Is there a cap?
Yes. Total gratuity cannot exceed two years of basic wage.
Does resigning reduce gratuity?
Not under Federal Decree-Law 33 of 2021, which removed the old reductions for resignation.
Does unpaid leave count?
No. Days of unpaid absence are excluded from the service period.
Read the guide
For education only. Private-sector employees under Federal Decree-Law 33 of 2021; DIFC, ADGM and government employees have different rules. Not legal advice.