UAE GRATUITY CALCULATOR 2026
🧮 UAE Gratuity Calculator 2026
Based on Federal Decree-Law No. 33 of 2021
Resignation and termination are calculated the same way under the current law, so no extra selection is needed.
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UAE Gratuity Calculator 2026: Complete Guide
If you're an expatriate working in the UAE, understanding your end-of-service gratuity is crucial before you resign, get terminated, or complete your contract. This calculator applies the current UAE Labour Law (Federal Decree-Law No. 33 of 2021) to give you an instant, accurate estimate based on your actual working dates, and the guide below explains exactly how the numbers work.
What Is Gratuity (مكافأة نهاية الخدمة)?
Gratuity, also called end-of-service benefits (EOSB), is a lump-sum payment employers are legally required to pay employees who complete at least one year of continuous service, under Article 51 of the UAE Labour Law. Many employees, especially expatriates, aren't sure how their exact amount is calculated. This guide and calculator remove the guesswork.
How Gratuity Is Calculated
Gratuity is calculated on your basic salary only. Housing, transport, and other allowances are excluded.
Daily wage = Basic Salary ÷ 30. This daily rate is multiplied by your total eligible gratuity days to get your final payout. Enter your first and last working day above for an exact, date-based result.
| Basic Salary | Years of Service | Estimated Gratuity |
|---|---|---|
| AED 5,000 | 3 years | AED 10,500 |
| AED 10,000 | 4 years | AED 28,000 |
| AED 12,000 | 7 years | AED 66,000 |
For a deeper walkthrough with more worked examples, see our guide on how UAE gratuity is calculated and the full step-by-step formula breakdown.
What Counts as Basic Salary?
One of the most common mistakes is entering the wrong salary figure. Gratuity is calculated on basic salary only, not your total package.
| Salary Component | Included? |
|---|---|
| Basic Salary | ✅ Yes (primary basis) |
| Housing Allowance | ❌ No |
| Transport Allowance | ❌ No |
| Food / Meal Allowance | ❌ No |
| Medical Allowance | ❌ No |
| Overtime Pay | ❌ No |
| Bonus / Commission | ❌ No |
Your basic salary is the fixed amount stated in your MOHRE-registered labour contract, not your offer letter's combined figure. See our detailed guide on Basic Salary vs Total Salary.
Who Qualifies for Gratuity?
- ✅ Completed at least 1 year of continuous service
- ✅ Resigned, or terminated by your employer
- ✅ Working full-time in the private sector or a MOHRE-governed free zone (other work patterns follow separate rules, see our part-time guide)
- ❌ Less than 1 year of continuous service
- ⚠️ Dismissed for misconduct under Article 44 (gratuity is not automatically forfeited, see our Article 44 guide)
- ⚠️ Absconded or abandoned the job (see our absconding guide)
Unpaid leave days are deducted from your total service period before the calculation runs. Paid leave (annual, sick, maternity) does not reduce your entitlement.
Curious how this differs for UAE nationals? See our guide on Gratuity vs Pension for UAE Nationals (GPSSA Explained).
Does Resignation Reduce Your Gratuity?
No, not under the current law. This is the most common misconception online, and much of the advice you'll find elsewhere is outdated. Under the old Federal Law No. 8 of 1980, employees on unlimited contracts who resigned early received a reduced gratuity: one-third between 1-3 years, two-thirds between 3-5 years. That penalty was abolished by the 2021 reform. Today, all UAE contracts are fixed-term (limited), and resignation and termination are calculated identically as long as you've completed at least one year of service.
One caveat: Article 68 of the current law allows an employer, when adjusting an old unlimited-term contract, to calculate end-of-service benefits under the old law's unlimited-contract provisions. If your contract dates from before 2022, ask HR how your earlier service is being treated.
Read the full legal history in our guide on how the 2021 decree abolished the resignation penalty, or see practical payout scenarios in Does Resignation vs Termination Still Affect Your Payout?
Free Zone Gratuity Rules
Most UAE free zones (JAFZA, DMCC, DAFZA, and others) follow the standard federal formula above. DIFC and ADGM are different. Instead of a lump-sum gratuity, they use DEWS-style monthly savings schemes. Contributions accumulate from your first month, rather than being calculated at the end.
Full details in our Free Zone Gratuity Rules guide (DIFC, ADGM & DEWS explained).
The Alternative End-of-Service Savings Scheme (2023)
Under Cabinet Resolution No. 96 of 2023, mainland UAE employers can voluntarily opt into an alternative savings scheme instead of paying a lump-sum gratuity. Employers make monthly contributions (5.83% of basic salary for the first 5 years, 8.33% after) into an approved investment fund, similar in structure to DEWS. Any gratuity you'd already accrued before your employer joined the scheme is calculated under the standard rules and preserved separately. Adoption is still voluntary and relatively limited as of 2026, so most employees remain under the traditional lump-sum system. If you're unsure which applies to you, ask HR directly.
What's in Your Full Final Settlement?
Gratuity is just one part of what you're owed when you leave a job. Your final settlement may also include unpaid salary, unused annual leave, notice period pay, and any pending allowances, minus lawful deductions:
Employers must settle all of this within 14 days of your contract ending. Use our Final Settlement Checklist to verify your figure before signing anything.
Want your complete figure, including unused leave pay and notice pay? Use our UAE Final Settlement Calculator.
If Your Employer Won't Pay Your Gratuity
- Contact HR in writing and request a full settlement breakdown.
- File a complaint via the MOHRE app or website. This is the mandatory first step.
- Call MOHRE's Labour Claims and Advisory Call Centre (80084) to speak with a labour officer directly.
- Escalate to the labour court if MOHRE mediation fails or the claim is above AED 50,000. Workers are exempt from court fees for claims up to AED 100,000.
Under Article 65 of the law, any waiver or discharge of a worker's rights is null and void if it violates the law's provisions, so a "no claim" waiver does not automatically cancel your gratuity. Full details in our guide on what to do if your employer doesn't pay your gratuity. If it's been a while since you left, don't assume it's too late. See how long you have to claim your gratuity.
Common Gratuity Calculation Mistakes
- Using total salary instead of basic salary, the single most common and costly error.
- Applying 30 days across your entire tenure instead of switching from 21 to 30 days at year 5.
- Assuming resignation still reduces your payout. It doesn't, under current law.
- Forgetting the two-year wage cap for very long-tenured employees.
- Ignoring unpaid leave deductions, which reduce your total qualifying service days.
See our full breakdown in Common Gratuity Calculation Mistakes Employers Make.
Frequently Asked Questions
Yes. As long as you've completed at least one year of continuous service, you're entitled to your full gratuity calculation, whether you resign or are terminated.
Only your basic salary. Housing, transport, and other allowances are excluded from the calculation entirely.
Total gratuity cannot exceed two years' wage under Article 51, regardless of how many years you've actually worked.
Employers must settle your full and final dues, including gratuity, within 14 days of your contract ending.
Gratuity claims generally have a 2-year limitation period from the date your employment ended, under Article 54(9) as amended in 2024.
No gratuity is payable if you leave before completing one full year of continuous service, regardless of the reason.
Generally no. UAE nationals are covered by the pension and social security system (GPSSA) instead of the standard end-of-service gratuity. The position for other GCC nationals can differ, so confirm with HR or GPSSA.
No. DIFC and ADGM use DEWS-style monthly savings schemes instead of the standard lump-sum gratuity formula.
The law allows an employer to deduct from end-of-service benefits amounts payable under the law or a court judgment, under the conditions set by the Implementing Regulation. Even in dismissals under Article 44, gratuity is not automatically forfeited. See our detailed guide on Article 44 for the full picture.
© 2026 UAE Gratuity Calculator. All Rights Reserved.
This calculator provides an estimate for planning purposes and is not legal advice. For a binding figure, contact MOHRE or a UAE-licensed legal professional.
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