UAE gratuity calculator (2026)
End-of-service benefits under Federal Decree-Law No. 33 of 2021
Under Article 51 of UAE Federal Decree-Law No. 33 of 2021, end-of-service gratuity is 21 days of basic salary per year of service for the first five years and 30 days per year thereafter, capped at two years' total wage. Full gratuity is payable whether you resign or are terminated.
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Frequently asked questions
How is gratuity calculated in the UAE?
Take your monthly basic salary, multiply by 12 and divide by 365 to get your daily basic wage. You are owed 21 days of that wage per year for your first five years of service, and 30 days per year after that, pro-rated for partial years. The total cannot exceed two years' wage.
Who is eligible for end-of-service gratuity?
Any employee who completes at least one year of continuous service with the same employer. Service of less than one year earns no gratuity. Unpaid leave days are excluded from the service period.
Does resigning reduce my gratuity?
No. Under Federal Decree-Law 33/2021, in force since 2 February 2022, you receive your full gratuity whether you resign or your employer ends the contract. The old reductions of one-third or two-thirds for resignation were abolished with the 1980 law.
Is gratuity calculated on basic or gross salary?
Basic salary only. Housing, transport and other allowances are excluded from the calculation by law.
Do free-zone employees get the same gratuity?
Most free zones follow the federal rules, but DIFC and ADGM have their own employment laws — DIFC replaced gratuity with the funded DEWS scheme. Check the calculator for your specific free zone.
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This tool gives an estimate under UAE Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022. Your contract terms and final settlement may differ. This is not legal advice.