UAE Gratuity Calculator 2026

If you took a personal loan or salary advance from your employer at some point during your job in the UAE, you might be wondering whether this can be deducted from your gratuity when you leave. This is a common situation, especially since many UAE employers offer interest-free advances as a benefit. This guide explains exactly what the law allows employers to deduct, and what crosses the line into an unlawful reduction of your gratuity. Can Employers Legally Deduct Loans From Your Gratuity? Yes, but only under specific conditions. Under UAE Federal Decree-Law No. 33 of 2021, an employer can deduct amounts you genuinely owe them — such as an outstanding personal loan, salary advance, or company property you haven't returned — from your final settlement, including your gratuity. However, this right is not unlimited , and disputes often arise over how much is deducted and whether it was properly documented. This is different from an employer refusing to pay gratuity altogether o...

If the company you work for has been acquired, merged with another business, or changed ownership, you might be wondering what happens to your years of service and your gratuity. This is different from a company simply shutting down or going bankrupt — here, the business keeps operating, just under new ownership or a new legal structure. This guide explains how UAE Labour Law treats this situation and what it means for your end-of-service benefits. Does a Change in Ownership Reset Your Service? Under UAE Federal Decree-Law No. 33 of 2021, when a business is transferred, sold, or merged with another entity while continuing to operate, this is generally treated as a transfer of the establishment rather than a termination of employment. In most cases, your continuous service is preserved, and the new owner or merged entity inherits the obligations of the previous employer — including your accumulated gratuity liability. This is an important distinction from cases where a company ge...

If you've taken extended sick leave at some point during your UAE employment, you may be wondering whether it affects the gratuity you're owed at the end of your service. This is a common concern, especially for employees who've had a serious illness or injury requiring weeks or months away from work. This guide explains exactly how sick leave interacts with your gratuity calculation under UAE Federal Decree-Law No. 33 of 2021. Does Sick Leave Reduce Your Gratuity? The short answer is: generally, no — but with an important nuance. Gratuity in the UAE is calculated based on your basic salary and your total years of continuous service. Standard paid sick leave, taken within the limits set by law, does not interrupt your continuous service and does not directly reduce your gratuity calculation. However, unlike maternity leave (which is fully protected and does not affect gratuity at all), sick leave has a tiered pay structure that can indirectly affect your finances dur...

Leaving a job without notice — or disappearing from work entirely — is one of the most serious moves an employee can make under UAE Labour Law. Beyond visa cancellation and potential bans, absconding directly affects whether you receive your end-of-service gratuity at all. This guide explains exactly what "absconding" means legally, how it impacts your gratuity payout, and what your options are if you're in a difficult work situation and considering leaving without proper notice. What Counts as "Absconding" Under UAE Law? Under UAE Federal Decree-Law No. 33 of 2021, absconding is officially defined as an employee being absent from work without a valid excuse or without notifying the employer for seven consecutive working days or more . Once this threshold is reached, the employer can report the case to the Ministry of Human Resources and Emiratisation (MOHRE), which formally records the employee as an absconder. This is different from resigning without ser...

Your UAE gratuity lands in your account completely untouched — no deductions, no withholding, no income tax. That part is straightforward. What catches many expats off guard is what happens next: once that money crosses a border, or once you move back home, a different country's tax rules can suddenly apply to it. Here's the full picture. The Short Answer Gratuity is not taxed in the UAE. The UAE has no personal income tax system, so your end-of-service gratuity, like your regular salary, is paid to you in full with nothing withheld. However, whether it stays tax-free depends entirely on your own tax residency status in your home country — and that's where things get more complicated for many expats. Why the UAE Doesn't Tax Gratuity The UAE has no personal income tax on salaries, bonuses, or end-of-service benefits for individuals. This applies uniformly — gratuity is treated the same as any other employment income, which in the UAE means zero tax at the point o...

If your employer hasn't paid your gratuity, or the figure they've offered doesn't match what you're owed, you don't need a lawyer or a single dirham to do something about it. Filing a labour complaint with the Ministry of Human Resources and Emiratisation (MOHRE) is free, and the process is designed so an employee can handle it alone. Here's exactly how it works, step by step. Before You File: What to Gather Complaints with clear numbers and documents settle faster. Before you start, collect: Your Emirates ID and labour card or work permit number Your employer's company/establishment name and details A copy of your employment contract Recent payslips showing your basic salary Your own calculation of what you believe you're owed, including the dates your employment started and ended Any written correspondence with your employer about the unpaid gratuity (emails, messages, or a final settlement document, if one was issued) If you...

When your employment ends in the UAE, gratuity usually gets all the attention — but it's rarely the only payout on your final settlement. If you have unused annual leave days sitting on the books, those are owed to you too, calculated completely separately from your gratuity. Confusing the two, or assuming one covers the other, is one of the most common final-settlement mix-ups. Gratuity and Leave Salary Are Two Different Payments Under Federal Decree-Law No. 33 of 2021, your end-of-service gratuity and your unused annual leave payout — often called "leave salary" — are calculated using different formulas, for different reasons, and neither one substitutes for the other. Both are legally required components of your final settlement, alongside any outstanding regular salary and other contractual entitlements. How Annual Leave Accrues Under Article 29, private-sector employees in the UAE are entitled to 30 calendar days of paid annual leave per year once they've...

A common belief among UAE employees is that being fired for misconduct means automatically losing your entire gratuity. This was true under the old law, but the current law reads differently. Here's what Article 44 of the current UAE Labour Law actually says, and why "misconduct" and "zero gratuity" aren't the same thing they used to be. The Old Rule vs. the Current Rule Under the previous law (Federal Law No. 8 of 1980), summary dismissal for gross misconduct was governed by the old Article 120, and it typically meant forfeiting your entire end-of-service gratuity. That's where the widespread belief comes from. Under the current law, Federal Decree-Law No. 33 of 2021, summary dismissal is governed by Article 44 . The text of Article 44 deals only with the grounds and procedure for dismissal and does not provide for forfeiting gratuity. Separately, Article 51 grants end-of-service benefits to a full-time foreign worker who has completed at least o...

If you're planning a family while working in the UAE, one question rarely gets a straight answer: does taking maternity leave affect your end-of-service gratuity? The answer depends entirely on which part of your leave you're talking about — and the distinction matters more than most guides let on. The Short Answer Your standard 60-day paid maternity leave does not reduce your gratuity . It counts as normal service, exactly like any other paid period of employment. However, if you take the additional unpaid extensions available under the law — for pregnancy-related illness or a personal extension — those extra unpaid days are excluded from your qualifying service period, the same way any other unpaid leave is treated under Article 51. How UAE Maternity Leave Is Structured Under Article 30 of Federal Decree-Law No. 33 of 2021, every female employee in the UAE private sector is entitled to maternity leave regardless of how long she has worked for her employer: 60 day...

Most gratuity guides mention basic salary, years of service, and the 21/30-day formula — but almost none explain what happens if you took unpaid leave along the way. If you've ever taken time off without pay, your final gratuity number may be lower than a simple calculator suggests. Here's exactly why, and how to work out the impact. The Short Answer Yes — unpaid leave reduces your gratuity. Under UAE Labour Law, gratuity is calculated based on your qualifying service period , and days you were absent without pay are not counted toward that period. In effect, unpaid leave "pauses" your service clock rather than simply passing by unnoticed. Why This Happens Gratuity under Federal Decree-Law No. 33 of 2021 is built entirely around continuous, paid service: The first 5 years earn 21 days of basic salary per year Every year after that earns 30 days of basic salary per year Your daily wage is your monthly basic salary ÷ 30 All of this assumes your years...