Free tool · Updated November 2026
UAE Gratuity Calculator (End of Service)
Gratuity in the UAE is 21 days of basic salary for each of the first five years of service and 30 days for each year after that, capped at two years of basic salary. Enter the basic salary and dates below to see the figure and the working.
Basic salary only, without allowances.
These are taken off the service period.
Estimate based on the rules summarised below. It does not store anything: the numbers stay in your browser.
How the calculation works
- Find the daily wage. Monthly basic salary divided by 30.
- Count the service. Joining date to last working day, minus unpaid leave days, in years. Gratuity starts once one full year is completed.
- Apply the rates. 21 days of daily wage for each of the first 5 years, and 30 days for each year after that. Part years count in proportion.
- Apply the cap. The total cannot be more than two years of basic salary (24 months).
Worked example
Basic salary AED 10,000, eight years of service. Daily wage is AED 333.33. The first five years give 105 days (21 × 5), which is AED 35,000. The next three years give 90 days (30 × 3), which is AED 30,000. Total gratuity is AED 65,000, well under the cap of AED 240,000.
What is and is not included
- Included: basic salary at the end of employment.
- Not included in gratuity: allowances such as housing and transport. Unused leave pay, notice pay and any unpaid salary are separate amounts in the final settlement.
- Under one year: no gratuity is due.
- Timing: the law expects final dues to be paid within 14 days of the contract ending.
- Different rules apply to UAE and GCC nationals (pension), and to DIFC, ADGM and some free zones.
Common questions
How is gratuity calculated in the UAE?
For employees who have completed at least one year, gratuity is 21 days of basic salary for each of the first five years of service and 30 days for each year after that. A day is the monthly basic salary divided by 30, part years count pro rata, and the total cannot exceed two years of basic salary.
Is gratuity calculated on basic salary or total salary?
On the last basic salary only. Housing, transport and other allowances are not included in the calculation.
Do unpaid leave days count towards gratuity?
No. Days of unpaid leave are taken off the length of service before gratuity is worked out, which is why the calculator has a field for them.
Is gratuity paid if you resign?
Under Federal Decree-Law 33 of 2021 the amount does not depend on whether the employee resigned or was dismissed, as long as they completed a year of service. Older guidance that cut gratuity for early resignation referred to the previous law. Check your own contract and MOHRE if your case is unusual.
Do UAE and GCC nationals get gratuity?
UAE and other GCC nationals are generally covered by pension contributions instead of end of service gratuity, so this calculator shows no gratuity for them unless you confirm they are not enrolled in a pension scheme.
Does the calculator work for DIFC, ADGM or free zones?
It follows the UAE mainland private sector rules. DIFC and ADGM run their own end of service schemes, and some free zones have different rules, so confirm with your authority.
Keep reading
- UAE gratuity calculation explained
- Resignation, notice period and final settlement in the UAE
- Free WPS SIF file checker
- The best WPS payroll software for UAE small businesses
This calculator gives an estimate for general planning under UAE mainland private sector rules (Federal Decree-Law 33 of 2021) and is not legal advice. Confirm the exact amount with MOHRE or a qualified adviser, especially for contract disputes, free zones or part-time arrangements.
Gratuity worked out for every employee, automatically.
OfficeHR calculates end of service for each employee with the working shown, and builds your WPS file in the same place. Try it free for 30 days, no card needed.