UAE Gratuity Calculator 2026

How is UAE gratuity calculated in 2026?

Your daily rate is basic salary × 12 ÷ 365. For each of the first five years you earn 21 days of that rate per year; after five years you earn 30 days per year. The total cannot exceed 24 months of basic salary. Resignation and termination use the same calculation under Federal Decree-Law No. 33 of 2021.

Does UAE gratuity include allowances?

No. Housing, transport, and other allowances are excluded. Only your contractual basic salary is used for the daily rate under Article 51.

What happens to my gratuity if I resign in UAE?

Under Federal Decree-Law No. 33 of 2021, voluntary resignation and termination by the employer are calculated the same way — there is no reduced gratuity rate for resigning under the current rules.

Is there a maximum gratuity in UAE?

Yes. Total end-of-service gratuity is capped at 24 months (two years) of your basic salary, regardless of how long you have worked.

When must the employer pay UAE gratuity?

The employer must settle all end-of-service benefits, including gratuity, within 14 days of the employment contract ending.

Can my employer deduct from my UAE gratuity?

Only lawful deductions are permitted — for example, amounts you owe the employer under the law or a court order. Your employer cannot make arbitrary or unexplained deductions from your gratuity.

Do I get gratuity if I worked less than one year in UAE?

No. You must complete at least one full year of continuous service to be eligible for any gratuity payment under UAE law.

Is UAE gratuity calculated on basic salary or total salary?

It is calculated on basic salary only. Your total package including housing allowance, transport allowance, and other benefits are excluded from the gratuity calculation.