End-of-Service Benefit Calculator
UAE End-of-Service Gratuity Calculator
Free, accurate, and instant — based on UAE Federal Decree-Law No. 33 of 2021, Article 51
UAE End-of-Service Gratuity Calculator
Your result will include
Total gratuity in AED
Instantly calculated, no sign-up
Year-by-year accrual table
See exactly how gratuity builds over time
Law citation & legal notes
UAE Federal Decree-Law No. 33 of 2021, Article 51
Downloadable PDF report
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Calculation is instant and private — nothing is sent to a server.
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How much gratuity do you get in the UAE?
A private-sector employee in the UAE earns 21 days of basic salary for each of the first five years of service, then 30 days of basic salary for every year after that. Gratuity is paid in full after at least one year of service — whether you resign or are terminated — is calculated on basic salary only, and is capped at two years’ basic pay. This is set by Federal Decree-Law No. 33 of 2021, Article 51.
- Wage base
- Basic salary only
- Per year of service
- 21 days (1–5 yrs), 30 days (6+ yrs)
- Minimum service
- 1 year
- Maximum
- 2 years’ basic pay
- On resignation
- Paid in full (since Feb 2022)
- Daily wage
- Basic salary ÷ 30
Last reviewed: July 2026
What is UAE end-of-service gratuity?
End-of-service gratuity — also called an end-of-service benefit (EOSB) or severance — is a lump sum your employer must pay when your employment ends in the UAE, provided you have completed at least one year of continuous service. For the country’s large expatriate workforce it acts as a statutory payout in place of a pension.
Gratuity in the private sector is governed by UAE Federal Decree-Law No. 33 of 2021 (the Labour Law) and its Article 51, which took effect on 2 February 2022. The amount depends on your basic salary, how long you worked, and — before 2022 — how you left. Since the 2021 law, the reason for leaving no longer reduces the amount for most employees.
This gratuity calculator for the UAE applies Article 51 exactly: it uses your basic salary, counts your service to the day, applies the 21-day and 30-day rates, and caps the result at two years’ basic pay — so you get the same figure your employer should.
How UAE gratuity is calculated
The formula is simple once you separate basic salary from allowances. Follow these steps, or just use the calculator above.
- 1
Start from your basic salary
Use your monthly basic salary only. Housing, transport, and other allowances are excluded from the calculation.
- 2
Work out your daily wage
Daily wage = monthly basic salary ÷ 30.
- 3
Count the first five years at 21 days
For each of the first five years, you earn 21 days of basic pay: 21 × daily wage × years.
- 4
Count later years at 30 days
For every year beyond the fifth, you earn 30 days of basic pay: 30 × daily wage × those years.
- 5
Prorate part-years and unpaid leave
A partial final year is paid in proportion to the days worked, and any unpaid-leave days are removed from your service period.
- 6
Apply the two-year cap
The total gratuity can never exceed two years’ (24 months’) basic salary, however long you served.
| Service period | Gratuity earned |
|---|---|
| First 1–5 years | 21 days’ basic pay per year |
| 6th year onward | 30 days’ basic pay per year |
| Overall cap | 2 years’ (24 months’) basic pay |
You must complete one full year before any gratuity is due. Basic salary — not gross salary — is always the basis.
How to calculate gratuity in the UAE: years table and examples
UAE gratuity calculation examples
Three worked examples using the Article 51 formula (daily wage = basic ÷ 30). Your own figures will differ — run them in the calculator above.
3 years of service, resigned
- Basic salary: AED 10,000 → daily wage = 10,000 ÷ 30 = AED 333.33
- First 3 years: 21 days × 3 = 63 days
- 63 days × AED 333.33 = AED 21,000
- Resignation does not reduce this since February 2022.
GratuityAED 21,0008 years of service, terminated
- Basic salary: AED 15,000 → daily wage = 15,000 ÷ 30 = AED 500
- First 5 years: 21 × 5 = 105 days
- Next 3 years: 30 × 3 = 90 days
- Total 195 days × AED 500 = AED 97,500
GratuityAED 97,50026 years of service (cap applies)
- Basic salary: AED 20,000 → daily wage = AED 666.67
- Formula gives 105 + (30 × 21) = 735 days
- But the cap is 2 years = 24 months = AED 480,000
- The 735-day result is reduced to the two-year cap.
Gratuity (capped)AED 480,000
Who is eligible for gratuity in the UAE?
Most private-sector employees on the UAE mainland qualify once they meet the service condition. A few groups are covered by separate systems.
You completed at least one year
Gratuity is due only after one full year of continuous service. Days of unpaid leave are not counted toward that period.
Private-sector employees
Article 51 covers employees of mainland private-sector companies registered with the Ministry of Human Resources and Emiratisation (MOHRE).
UAE and GCC nationals are excluded
Emirati and GCC nationals receive a pension and end-of-service benefits through the GPSSA social-security scheme instead of employer gratuity.
Free zones
Most free zones follow the federal formula, but the DIFC (which uses the DEWS savings plan) and ADGM run their own schemes. See the free-zone section below.
Domestic workers
Domestic workers are covered by a separate law (Federal Decree-Law No. 9 of 2022) with its own end-of-service rules.
Dismissal for misconduct
Article 44 lets an employer dismiss without notice for listed misconduct, but unlike the 1980 law it does not remove gratuity. The employer may only deduct amounts you owe it.
Gratuity in Dubai, Abu Dhabi and the other emirates
There is one gratuity formula for the whole UAE mainland. Federal Decree-Law No. 33 of 2021 is a federal law, so an employee in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah or Fujairah earns the same 21 and 30 days of basic salary per year, under the same one-year minimum and the same two-year cap. So a Dubai gratuity calculator, a gratuity calculator for Abu Dhabi or Sharjah, or an end of service calculator for any other emirate should give exactly the same answer as this page for a mainland job.
The Ministry of Human Resources and Emiratisation (MOHRE) administers the law in every emirate. This calculator is independent of MOHRE, but it applies the same Article 51 that MOHRE enforces, and the rules do not change with the emirate your employer is licensed in.
Gratuity in UAE free zones: JAFZA, DMCC, DIFC and ADGM
Most free-zone employees are on the same gratuity formula as the mainland. The UAE Government says free-zone staff are governed by their free-zone authority’s employment regulations together with Federal Decree-Law No. 33 of 2021, and that those regulations are typically aligned with the federal law. Only the two financial free zones run a genuinely separate system.
JAFZA (Jebel Ali Free Zone)
JAFZA’s own guidance tells its companies to follow the Ministry’s rules on end-of-service benefits, so the Article 51 formula applies and this page works as a JAFZA gratuity calculator.
DMCC
DMCC’s published end-of-service guidance works its examples from Decree-Law 33/2021, so this page works as a DMCC gratuity calculator too. DMCC describes that guidance as its own reading of the law, which a labour court could interpret differently in a dispute.
DIFC
The DIFC has its own employment law and replaced gratuity with DEWS, a funded savings plan. Article 51 does not apply there, and this calculator does not model DEWS.
ADGM
Abu Dhabi Global Market has its own employment regulations and end-of-service scheme, so a mainland figure will not match.
Working in another free zone? Check your contract and your free-zone authority’s employment regulations before relying on a mainland figure.
Resignation, termination, and contract type
Resignation vs termination: since Federal Decree-Law No. 33 of 2021 took effect in February 2022, the reason you leave no longer changes your gratuity. Whether you resign, are terminated, or reach the end of your contract, you receive the full amount once you have completed one year.
This is the biggest change from the old law. Before 2022, an employee who resigned from an unlimited contract before five years could receive only one-third or two-thirds of their gratuity. Many older articles and calculators still show those reduced rates — they no longer apply.
Limited vs unlimited contracts: the 2021 law also removed the limited/unlimited distinction. All UAE employment contracts are now fixed-term (limited). If you still see “unlimited contract gratuity” rules, that is the pre-2022 system and does not affect your current entitlement.
Misconduct is no longer an exception either. The 1980 law (Article 139) removed gratuity from a worker dismissed for misconduct, but Decree-Law 33/2021 has no equivalent: Article 44 allows dismissal without notice and says nothing about gratuity.
Common gratuity calculation mistakes
Using total salary instead of basic
Gratuity is calculated on basic salary only. Including housing, transport, or other allowances inflates the result.
Forgetting the two-year cap
No matter how long you served, total gratuity is capped at 24 months’ basic pay.
Assuming resignation cuts your gratuity
That was the pre-2022 rule. Today resignation and termination pay the same amount.
Counting unpaid leave as service
Unpaid-leave days are excluded from the service period used in the calculation.
Expecting gratuity before one year
No gratuity is due until you have completed one full year of continuous service.
Applying mainland rules in a free zone
DIFC (DEWS) and ADGM use separate schemes — the mainland formula may not match your entitlement there.
Tips for UAE employees
- Check your employment contract or payslip for the exact basic-salary figure — that is the number your gratuity is based on.
- Keep copies of your contract, your joining date, and your last working day.
- Confirm your final settlement includes gratuity, payment for any unused annual leave, and any notice pay or salary still owed.
- If your basic salary changed over time, your last basic salary is used for the calculation.
- If you believe you have been underpaid, you can file a complaint with MOHRE (free) before taking legal action.
Important legal notes
Governing law
UAE Federal Decree-Law No. 33 of 2021, Article 51, in force since 2 February 2022, governs private-sector end-of-service gratuity.
Basic salary basis
The law bases gratuity on the last basic wage, excluding allowances.
Free zones and public sector
DIFC, ADGM, and public-sector or GPSSA-covered employees fall under different rules and are not reflected here.
Estimate, not legal advice
This tool gives an accurate estimate for guidance. Confirm your final figure with your employer, MOHRE, or a qualified lawyer before acting.
Frequently asked questions
How is gratuity calculated in the UAE?
Gratuity is 21 days of basic salary for each of the first five years of service and 30 days of basic salary for each year after that. The daily wage is your monthly basic salary ÷ 30, and the total is capped at two years’ basic pay — per Federal Decree-Law No. 33 of 2021, Article 51.
Is UAE gratuity based on basic salary or gross salary?
Basic salary only. Housing, transport, and other allowances are excluded from the wage base used to calculate gratuity.
Do I still get gratuity if I resign in the UAE?
Yes. Since February 2022, resignation no longer reduces your gratuity. As long as you have completed at least one year, resignation and termination are paid the same amount.
What is the minimum service to qualify for gratuity in the UAE?
One full year of continuous service. Below one year, no gratuity is due; unpaid-leave days do not count toward the year.
What is the maximum gratuity in the UAE?
Total gratuity is capped at two years’ (24 months’) basic salary, regardless of how many years you worked.
Is there still a difference between limited and unlimited contracts?
No. The 2021 Labour Law removed the limited/unlimited distinction — all contracts are now fixed-term, and gratuity is the same regardless of the old contract type.
Do UAE nationals get gratuity?
UAE and GCC nationals are covered by the GPSSA pension and social-security scheme instead of employer-paid gratuity.
Is gratuity calculated differently in Dubai or Abu Dhabi?
No. Gratuity is set by a federal law, so Dubai, Abu Dhabi and every other emirate use the same Article 51 formula: 21 days of basic salary per year for the first five years, 30 days after that, capped at two years’ basic pay. Only the DIFC and ADGM financial free zones differ.
Is this the official MOHRE gratuity calculator?
No. Mukafi is an independent calculator. It applies Article 51 of Federal Decree-Law No. 33 of 2021, the same rules MOHRE enforces for the private sector. If your employer’s figure differs from yours, MOHRE is where the dispute is decided.
Is this gratuity calculator up to date for 2026?
Yes. The Article 51 rates have not changed since the law took effect on 2 February 2022, and the UAE Government’s current guidance gives the same 21- and 30-day rates. The calculator is right for any job that ended from 2 February 2022 onward, so it gives the same result for a 2024, 2025 or 2026 exit; if yours ended before that date, the old 1980 law applied.
Is there a provident fund (PF) in the UAE?
Not for most expatriate employees. A search for a “PF calculator” or “PF calculation” in the UAE usually means end-of-service gratuity, which the employer pays as a lump sum when you leave. Two schemes work more like a fund: the voluntary Savings Scheme (Cabinet Resolution No. 96 of 2023), which an employer can join instead of accruing gratuity, and the DIFC’s DEWS plan.