UAE PRIVATE-SECTOR PLANNING
UAE Gratuity Calculator
Estimate your end-of-service gratuity from your basic salary and credited service. See the calculation, unpaid-absence adjustment and applicable wage cap.
For monthly-paid, full-time foreign workers covered by the federal Labour Law and ordinary gratuity system. General information, not a legal determination.
Calculate your estimate ↓Calculate your gratuity estimate
1. What the end-of-service benefit covers
Gratuity is a service-related payment under the UAE’s ordinary federal private-sector system. For an eligible full-time foreign worker, Article 51 calculates it from basic wage and service length. It is one part of a potential final settlement, alongside separately assessed salary, unused leave or other entitlements.
This tool estimates the ordinary statutory amount for monthly-paid workers. It does not decide a dispute, authenticate salary records or calculate every contractual enhancement. A contract or applicable rule may provide a more favourable benefit. Federal Labour Law, Articles 51 and 65.
Use the correct framework first: government service, domestic work, pension-covered employment, DIFC, ADGM and alternative savings arrangements have separate provisions. A business being in a free zone does not, on its own, establish which rules apply.
2. Current contracts and the old resignation rules
The federal framework introduced by Decree-Law 33 of 2021 took effect on 2 February 2022. Its ordinary Article 51 formula does not use the old unlimited-contract resignation fractions. The current calculator therefore has no legacy contract switch that can cut a current estimate merely because the employee resigns.
The original three-year maximum contract term was removed by Decree-Law 14 of 2022. Current fixed-term contracts are renewable as agreed; do not repeat the original three-year limit as the current rule. 2022 amendment to Article 8 · MoHRE amendment FAQ.
Historical end dates before 2 February 2022, transitional arrangements and contested contractual rights need separate assessment. Long service that began before 2022 is not automatically excluded, but this tool does not determine whether an exceptional transitional rule applies.
3. Eligibility, service days and leap years
Article 51 requires at least one year of continuous service for the ordinary statutory gratuity. Unpaid absence is excluded from the service term. Article 67 states a 365-day year and a 30-day month; the calculator uses 365 credited days as the threshold, rather than an average year of 365.25 days. Articles 51 and 67.
A 365-day period is therefore accepted. Real leap days are counted as calendar days, with the same stated 365-day denominator. A calendar anniversary spanning a leap day can contain 366 days; it will not be rejected as less than one year. The precise period in an actual settlement should match the legally applicable employment and payroll records.
Which dates are counted?
The default interval includes the joining date and excludes the end date. The optional inclusive-end checkbox adds exactly one day. The result and export record this choice. Deduct verified unpaid absence once; paid weekends and paid leave are not automatically removed. Dates are counted consistently as calendar dates, without time-of-day adjustments.
Continuity and probation
Probation can be part of continuing service; it is not automatically deducted. Renewals with the same employer can preserve continuity. Do not assume that moving between subsidiaries or legal employers always preserves the same service period: check the actual transfer and registration records. An estimate below the statutory threshold does not mean no other contractual or employment payments are due.
4. Basic salary, allowances and the wage cap
For this monthly-paid model, the earning calculation uses the last basic monthly wage, excluding allowances. It does not average the employee’s earlier lower salaries. Check the contract and payroll breakdown instead of guessing that basic salary must be a fixed percentage of the package. Articles 1 and 51.
If salary components are unclear, disputed or commission-based, obtain the applicable wage assessment rather than assuming that every variable payment is treated identically.
The statutory cap uses different wording: Article 51(6) refers to two years’ wage. The tool asks for the total monthly wage used for that cap and keeps it separate from the basic-wage earning calculation. Confirm the appropriate wage basis with HR or a qualified adviser, particularly for unusual pay arrangements.
5. Formulas and worked examples
Let be the last basic monthly salary in AED; the credited calendar days after excluding unpaid absence; the daily basic wage; and the service years under the stated basis.
No pro-rata statutory gratuity is applied below 365 credited days. Once the threshold is met, the first 1,825 credited days use the first-tier rate and additional service uses the later rate.
The formula uses 21 days of basic wage for each of the first five statutory years and 30 for each subsequent statutory year. Calculations retain full precision; currency displays round to two decimal places.
Example A: the corrected one-year boundary
Joining 1 October 2025 and ending 1 October 2026, with the end date excluded and no unpaid absence, gives 365 credited days. For a basic monthly salary of AED 6,000:
The gross estimate is AED 4,200.00. Selecting resignation, employer termination or expiry does not change this ordinary current-law amount.
Example B: 2,190 credited days across both tiers
For six statutory years of 365 days each, basic salary AED 6,000 and no cap reduction:
The first-tier contribution is AED 21,000.00 and the later contribution is AED 6,000.00. The total is AED 27,000.00. These are exactly 2,190 credited days; do not assume every six-calendar-year date interval contains the same number of days.
Example C: unpaid absence
A counted interval of 1,095 calendar days with 30 unpaid days gives 1,065 credited days. At AED 6,000 basic salary, the first-tier estimate is AED 12,254.79, before a potentially applicable wage cap or lawful deductions.
6. The two-years’ wage limit
Article 51(6) limits the ordinary statutory gratuity to two years’ wage. In this monthly-paid model, is the monthly wage entered for that cap and is the cap:
The result shows the uncapped amount, the cap when supplied, and any reduction separately. The cap is applied after adding the two service tiers. It is not a resignation reduction. Article 51(6).
If total wage is omitted and the calculation is no higher than 24 months of basic salary, the wage cap cannot reduce it where total wage is at least the basic salary. If the uncapped estimate exceeds that amount, the tool requests the wage input instead of inventing a final capped result.
7. Part-time work, other systems and exclusions
For part-time and other work patterns, the implementing rules use a proportion linked to contracted annual hours compared with full-time annual hours. The comparison must use the relevant full-time contract, not an assumed universal working week. This full-time calculator does not apply that adjustment automatically. UAE Government explanation of other work models.
| Arrangement | What to check |
|---|---|
| Part-time or another work pattern | Article 52 and Article 30 of the implementing regulation; contracted annual hours and applicable eligibility. |
| UAE/GCC pension-covered employment | The relevant pension and social security provisions. |
| DIFC employment | DIFC Employment Law, DEWS or another qualifying scheme, and any preserved gratuity. |
| ADGM employment | ADGM Employment Regulations and any valid alternative arrangement. |
| Government or domestic work | The separate public-service or domestic-worker legislation. |
| Alternative federal savings scheme | Membership dates, scheme contributions and any preserved pre-enrolment rights. |
| Freelance or disputed employment status | Establish the legal relationship before applying an employee gratuity formula. |
An “outside scope” response is not a zero-entitlement decision. Remote work can still be full-time employment: use the legal work pattern and governing framework, not merely the work location.
8. Unpaid absence and lawful deductions
Unpaid absence reduces credited service days under Article 51(4). Enter only excluded days within the selected employment period. A blank, negative, fractional or excessive absence value is rejected. Paid leave should not automatically be entered as unpaid absence.
Article 51(7) permits deductions payable under law or a judgment, subject to implementing conditions and procedures. A deduction is not established simply because an employer calls it a debt. Request the legal basis and supporting calculation, particularly for disputed property, damage, loan or notice claims. Article 51(4) and (7).
The displayed figure is gross gratuity before lawful deductions. It does not automatically add notice pay, unused leave, outstanding salary, contractual compensation or court awards, and it does not decide whether a proposed deduction is lawful.
9. Resignation, termination and misconduct
Resignation and employer termination use the same ordinary Article 51 earning formula in this current-law tool. Contract expiry also does not trigger a legacy resignation fraction.
Dismissal without notice is not the same as automatic forfeiture of gratuity. Article 44 concerns circumstances and procedures for dismissal without notice. Article 39’s disciplinary dismissal provision preserves the worker’s end-of-service benefit; gratuity and any lawful deductions must be assessed separately under Article 51.
Read Articles 39, 44 and 51 in the amended law. The DDA summary, disciplinary and Article 44 sections also distinguishes dismissal from gratuity. That summary contains historical contract wording, so use the later Article 8 amendment for current contract duration.
The calculator does not decide whether misconduct occurred, whether notice was properly waived, or whether a specific deduction or court order applies.
10. Payment timing and disputes
Article 53 requires wages and other end-of-contract entitlements to be paid within 14 days from the contract’s end date. Keep the employment contract, payslips, salary breakdown, service dates, leave records and the proposed settlement calculation. Article 53.
- Ask HR for an itemised settlement and an explanation of any disputed amount or deduction.
- Use the appropriate official employment authority promptly if the dispute is not resolved; the governing jurisdiction matters.
- Follow the authority’s referral, challenge and court directions. Separate procedural deadlines can be much shorter than a general limitation period.
The former one-year claim statement was outdated. Amended Article 54(9), following Decree-Law 9 of 2024, provides that claims under this law are not considered after two years from termination of the employment relationship. This is not permission to delay a complaint or ignore shorter procedural requirements. The calculator does not compute an individual legal deadline. Current Article 54 · MoHRE private-sector labour complaint service.
11. Alternative savings schemes
The voluntary alternative end-of-service system is separate from the ordinary gratuity formula. Employers in the federal scheme make subscriptions to an approved investment fund; the settlement can involve those contributions, returns and preserved entitlements from before enrolment. Do not apply the ordinary formula to all service and then add the full scheme balance for the same period.
MoHRE’s scheme guidance describes employer subscription rates of 5.83% of basic monthly salary before completing five years of service and 8.33% for service above five years, subject to the scheme’s detailed rules. Fund choices, fees, returns, transfers and payment procedures require the scheme documents; this page does not promise investment performance or universal protection from loss.
Cabinet Resolution 96 of 2023: alternative voluntary scheme · UAE Government scheme overview. DIFC’s DEWS framework is a separate regime and should not be treated as the same legal scheme.
12. Banking, tax and the final settlement
The amount calculated here is a gross employment benefit estimate. Tax treatment can depend on applicable residence, reporting and foreign-law rules. This calculator does not calculate tax or give personal tax advice.
Bank action depends on the account, finance agreements and circumstances. Do not assume that every end-of-service transfer must carry a universal label or automatically freezes every account. Ask the bank about the treatment of your account and any agreed debt obligations; this tool does not predict a bank’s decision.
A final settlement can include items beyond gratuity. Reconcile the salary and leave components separately and review any waiver or settlement document before relying on a single calculator total.
13. Frequently asked questions
Which salary should I enter?
Enter the last basic monthly wage for the ordinary earning formula. Do not substitute total salary including allowances. If wage components are disputed, obtain the applicable assessment rather than guessing a fixed basic-salary percentage.
Do I lose gratuity if I resign before five years?
The ordinary current federal Article 51 model does not apply the old resignation fractions. Provided the service threshold and applicable conditions are met, resignation does not itself reduce the standard earning calculation. Historical or special transitional cases are outside this tool.
Why does this calculator use 365 instead of 365.25?
Article 67 specifies a 365-day year and a 30-day month. The old average-year divisor could reject 365 days as less than a year. This tool counts actual calendar days, deducts entered unpaid absence, and uses the stated 365-day basis.
Is the final date included?
By default, the joining date is included and the end date is excluded. Check “Include the end date” to add that date as one counted day if appropriate. The report records your selection so it can be reconciled with HR.
Do leap years change the result?
Leap days are real calendar days and are counted when they fall inside the selected interval. The year denominator remains 365 under this model. A calendar anniversary spanning a leap day can contain 366 days; the report shows the actual counted service.
Does probation count?
Probation can be part of the service period where employment continues. Do not automatically deduct it as unpaid absence. A period below the gratuity threshold can still involve other wages or contractual payments.
How does unpaid leave affect the estimate?
Verified unpaid absence is excluded from credited service. Enter a whole number of unpaid calendar days within the selected interval. Do not deduct paid weekends or paid leave, and do not count the same unpaid day twice.
What happens at five years?
The first 1,825 credited days use the 21-day rate. Only additional credited service uses the 30-day rate. The higher rate does not retrospectively replace the first-tier rate.
Can the employer forfeit gratuity for misconduct?
Article 44 concerns dismissal without notice, not an automatic blanket loss of gratuity. Article 39 preserves the benefit in its disciplinary-dismissal provision. Article 51 and lawful deduction procedures must be considered separately; this calculator does not decide an individual dispute.
When must the employer pay?
Article 53 requires wages and other end-of-contract entitlements within 14 days from the contract’s end date. Use the official employment authority promptly if payment is delayed or disputed, and follow any separate procedural directions.
Is the claim limit still one year?
The former one-year statement is outdated. Amended Article 54(9) refers to two years from termination of the employment relationship. Complaint, referral and challenge procedures can impose shorter requirements; obtain advice promptly rather than treating this as a deadline calculator.
Why might total monthly wage be requested?
The earning formula uses basic wage, while Article 51(6) states a cap of two years’ wage. A total-wage input is needed when the cap could affect the result. The page does not silently equate wage and basic salary in a potentially binding cap case.
Does it calculate DIFC, ADGM or savings-scheme benefits?
No. Those arrangements are flagged as outside scope, rather than assigned a false zero entitlement. Use the relevant authority or scheme rules, including any preserved earlier benefits.
Does it include unpaid salary, leave pay or deductions?
No. The output is gross gratuity only, before lawful deductions. Other components of the final settlement must be assessed separately.
Can I download my calculation?
After calculation, download the CSV or print the estimate. It includes the dates, end-date convention, service days, unpaid absence, basic wage, tiers and cap status. Changing inputs disables export until recalculation, so the file matches the current report.
Who reviewed this page?
NUM8ERS maintains the page and checked the linked primary sources on 26 October 2026. No external legal opinion or professional certification is claimed. The guidance is general; confirm a disputed or unusual settlement with the relevant authority or a qualified UAE employment adviser.
Sources and scope of review
Source review: NUM8ERS · 26 October 2026. This is independent general information, not an official MoHRE calculator, a legal opinion or a certified settlement. No external legal opinion or professional certification is claimed. The Arabic legislation prevails if an English translation differs.
- MoHRE: Decree-Law 33 of 2021 and amendments — Articles 1, 8, 39, 44, 51, 53, 54, 66 and 67.
- UAE Legislation: current Labour Law record — governing text and amendment information.
- Decree-Law 14 of 2022 and MoHRE amendment FAQ — removal of the original three-year contract maximum.
- UAE Government: private-sector end-of-service benefits — eligibility, unpaid absence, ordinary gratuity and other work patterns.
- DDA Labour Law summary — supporting explanation of day-count rules and disciplinary dismissal; its old contract-duration wording is superseded by the later amendment.
- Cabinet Resolution 96 of 2023 — alternative voluntary end-of-service scheme.
The method models full-time, monthly-paid foreign workers under the ordinary current federal regime. It does not validate continuity, classify disputed wage components, determine lawful deductions, assess special transitional rights or settle a legal claim.
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