How UAE gratuity is calculated
Under Federal Decree No. 33 of 2021 (UAE Labour Law), end-of-service gratuity is based on basic salary only — not housing, transport, or other allowances. The Ministry of Human Resources and Emiratisation (MOHRE) applies a daily wage of basic salary ÷ 30, then:
- First 5 years:21 days' wage for each year of service
- After 5 years:30 days' wage for each additional year
- Cap:Total gratuity cannot exceed two years' total basic salary
Example (AED 10,000 / د.إ basic salary, 3 years): Daily wage = 10,000 ÷ 30 ≈ AED 333.33. Gratuity = 3 × 21 × 333.33 ≈ AED 21,000 (د.إ). The same rules apply whether you work in Dubai, Abu Dhabi, or elsewhere in the UAE private sector.
Who is eligible?
- Employees in the UAE private sector
- After completing 1 year of continuous service
- Both limited (fixed-term) and unlimited contract employees under the post-2022 law
- Entitlement generally applies whether you resign, are terminated, or leave by mutual agreement — after the qualifying period
For official disputes or final settlements, confirm amounts with MOHRE or qualified legal counsel. This calculator is for planning and education only.