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UAE End of Service Gratuity Calculator

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Estimate your end-of-service gratuity under UAE Labour Law. Enter your last basic monthly salary and years of continuous service.

UAE Gratuity Calculator

Live
Estimated gratuity
AED 97,500
Daily wage used
AED 333.33
Status
Eligible
Based on basic salary only (excludes housing, transport, and other allowances) under UAE Federal Decree-Law No. 33 of 2021, Article 51. Free zones like DIFC and ADGM follow different rules.

The formula

Daily wage = Last basic monthly salary / 30 For 1-5 years of service: Gratuity = Daily wage x 21 x years For years beyond 5: Gratuity = (Daily wage x 21 x 5) + (Daily wage x 30 x years beyond 5) Capped at 2 years' total wage, regardless of service length
Example

AED 15,000 basic monthly salary, 8 years of service: daily wage = AED 500. First 5 years: 500 x 21 x 5 = AED 52,500. Remaining 3 years: 500 x 30 x 3 = AED 45,000. Total: AED 97,500.

Step-by-step guide

  1. Enter your last basic monthly salary - the basic wage only, not your total package. Housing, transport, and other allowances are excluded by law.
  2. Enter your total years of continuous service, including partial years (e.g., 8.5 for 8 years and 6 months).
  3. Read your estimated gratuity, along with the daily wage used in the calculation and your eligibility status.

Common mistakes

Using gross salary instead of basic salary - gratuity is calculated on basic wage only, which is often significantly lower than total monthly compensation once housing and transport allowances are included.
Assuming this calculator applies everywhere in the UAE - free zones like DIFC and ADGM follow separate employment regulations, not the federal MOHRE framework this tool is based on.

Frequently asked questions

Do unpaid absence days count toward years of service?

No. Days of unpaid absence are excluded from the service period used in the gratuity calculation.

Is unused annual leave included in this calculation?

No. Unused annual leave is a separate final-settlement entitlement, paid on top of gratuity if accrued but unused - it isn't part of the gratuity formula itself.

What if I resign before completing 5 years?

As of the 2022 Labour Law update, there's no reduction in gratuity for voluntary resignation - the standard formula applies as long as the minimum one year of continuous service is met.

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