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UAE · updated 2026-10-18

UAE Gratuity Calculator (2026)

UAE gratuity under Decree-Law 33/2021: 21 days' basic pay per year for the first five years, 30 days after, capped at two years' wages.

Days of unpaid leave are excluded from the service period.

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Estimated amountmenapayroll.app · estimate · 2026-10-18
—AED

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How UAE gratuity is calculated

Under Article 51 of Federal Decree-Law 33 of 2021, an employee with at least one year of continuous service is entitled to:

Service Gratuity per year
Years 1–5 21 days of basic salary
Year 6 onwards 30 days of basic salary

Daily basic wage = monthly basic salary ÷ 30. Part years are pro rata, unpaid absence is excluded, and the total is capped at two years’ wage. Gratuity must be paid within 14 days of the contract ending.

Worked examples

7 years’ service, AED 10,000 basic salary

  • First 5 years: 5 × 21 × 333.33 = AED 35,000
  • Next 2 years: 2 × 30 × 333.33 = AED 20,000
  • Total gratuity: AED 55,000

3 years’ service, AED 6,000 basic salary

  • 3 × 21 × 200 = AED 12,600

Under one year: no gratuity is due.

What’s not included

Gratuity doesn’t include unpaid salary, leave encashment or notice pay; those are settled separately in the final settlement. Use the leave salary calculator for unused leave. Emirati employees registered with GPSSA receive a pension instead of gratuity. Employers who joined the voluntary alternative end-of-service savings scheme pay monthly contributions instead. See the UAE payroll guide.

Frequently asked questions

How many days of gratuity do I get in the UAE?
21 days of basic salary for each of the first five years of service, and 30 days for each year after that. Part years count pro rata. You need at least one year of continuous service.
Is gratuity reduced if I resign in the UAE?
No. Under Federal Decree-Law 33/2021 there is no reduction for resignation. The reduction tiers from the old 1980 law no longer apply.
Is gratuity calculated on basic or total salary?
On the last basic salary only. Housing, transport and other allowances are excluded.
Is there a maximum gratuity in the UAE?
Yes. Total gratuity cannot exceed two years' wage.
Do unpaid leave days count?
No. Days of unpaid absence are deducted from the service period before calculating gratuity.
Does this apply in free zones like DIFC or DMCC?
DIFC replaced gratuity with the DEWS savings plan, and ADGM has its own employment regulations. Most other free zones follow the federal formula, but check your free zone's regulations.