UAE Gratuity Calculator 2026 — How It Works
End-of-service gratuity in the UAE is set out in Federal Decree-Law No. 33 of 2021, Article 51. Eligible employees receive a lump sum based on basic salary and completed years of service when employment ends.
The exact formula
- Daily rate = Basic salary × 12 ÷ 365
- Under 1 complete year of service = zero entitlement
- Years 1–5 = 21 days of basic pay per year
- After 5 years = 30 days of basic pay per year
- Cap = 2 years of basic salary (24 months)
Worked example: AED 10,000 basic salary, 3 years of service = (10,000 × 12 ÷ 365) × 21 × 3 = AED 20,712
What counts as basic salary?
Only your contractual basic salary is included. Housing allowance, transport allowance, and any other benefits are excluded under Article 51.
Resignation vs termination in 2026
Under the 2021 law, there is no longer a reduced gratuity rate for employees who resign voluntarily. Both resignation and termination use the same 21-days and 30-days formula.
Frequently asked questions
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.
How we calculate this
Last updated: July 2026 · Legal reference: Federal Decree-Law No. 33 of 2021, Article 51
GulfWise calculations are based on the published text of Kuwait, UAE, and Saudi labour law. Where sources disagree or a primary-source text isn't independently verifiable online, we say so directly rather than presenting one reading as settled fact — and point you to PAM (Kuwait), the MOHRE (UAE), or a qualified labour lawyer to confirm your specific case. Every published figure needs a primary source or two or more independent secondary sources; if neither exists, we hedge rather than guess.
This page is for informational purposes only and does not constitute legal advice. Where GulfWise connects you with a labour lawyer (for example via WhatsApp), that lawyer is an independent third party — GulfWise does not provide legal advice itself and is not a party to that relationship. Always verify your specific situation with PAM, the relevant labour ministry, or a qualified labour lawyer before relying on any figure on this site.
Other GulfWise tools
Also calculate
KWKuwait EOSB Calculator
Labour Law No. 6 of 2010
Plan your exit
📅Resignation Timing Tool
Find the best date to resign
⚖️ Legally accurate
Based on Federal Decree-Law No. 33 of 2021, Article 51.