UAE Gratuity Calculator 2026
Calculate your end of service gratuity instantly. Based on UAE Federal Decree-Law No. 33 of 2021 (effective February 2022). Enter your basic salary and years of service below.
UAE Gratuity Law — How It Works
Under UAE Federal Decree-Law No. 33 of 2021 (the new Labour Law, effective February 2022), end of service gratuity is calculated as follows:
| Years of Service | Gratuity Rate |
|---|---|
| Less than 1 year | No entitlement |
| 1–5 years | 21 working days' basic salary per year |
| More than 5 years | 21 days/year for first 5 years + 30 days/year for each year beyond 5 |
| Maximum | 2 years' total basic salary (24 months cap) |
Important: The 2022 law removed the previous penalty for resignation under 5 years. Under the old law, resigning before 3 years meant no gratuity; 3–5 years meant a reduced amount. Under the current law, any resignation after completing 1 year earns full gratuity at the same rate as termination.
What Counts as Basic Salary?
UAE gratuity is calculated on basic salary only. The following components are excluded:
| Included | Excluded |
|---|---|
| Basic salary (as stated in contract) | Housing allowance |
| Transport allowance | |
| Food/meal allowance | |
| Commission payments | |
| Overtime pay | |
| Bonuses | |
| Profit shares |
If your contract does not specify a separate basic salary, the UAE Ministry of Human Resources may treat your total salary as basic salary. Always check your employment contract.
UAE Gratuity Calculation Examples
| Basic Salary | Years | Calculation | Gratuity |
|---|---|---|---|
| AED 5,000 | 2 years | (5,000 ÷ 30) × 21 × 2 | AED 7,000 |
| AED 5,000 | 5 years | (5,000 ÷ 30) × 21 × 5 | AED 17,500 |
| AED 5,000 | 7 years | 17,500 + (5,000 ÷ 30) × 30 × 2 | AED 27,500 |
| AED 10,000 | 3 years | (10,000 ÷ 30) × 21 × 3 | AED 21,000 |
| AED 10,000 | 10 years | 35,000 + (10,000 ÷ 30) × 30 × 5 | AED 85,000 |
When Is Gratuity Paid?
Your employer is required to pay gratuity within 14 days of your last working day. This applies whether you resigned, were terminated, or are leaving at the end of a fixed-term contract.
If your employer does not pay within 14 days, you can file a complaint with the UAE Ministry of Human Resources and Emiratisation (MOHRE) via the website or by calling 800-60.
In some cases, gratuity may be deducted if you owe money to the employer — for example, if you took an advance on salary. The employer must notify you in writing of any deductions.
What to Do With Your Gratuity
For most expats in UAE, the gratuity payout is one of the largest single cash receipts in their career. The three most common uses:
- Send home as remittance: Transfer to India, Pakistan, Philippines, etc. Compare rates at AED to INR, AED to PKR, or AED to PHP before sending.
- Invest in gold: Physical gold or XAU/USD. Check live gold price in UAE to time the purchase.
- Start trading: Many UAE expats use gratuity as starting capital for forex or gold CFD trading. Exness accepts $10 minimum deposits with instant USDT withdrawal.
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