Use this free calculator to estimate the end-of-service gratuity a private-sector employee in the UAE is owed under Federal Decree-Law No. 33 of 2021 (the UAE Labour Law). Enter the last basic monthly salary and the dates of service.
How UAE gratuity is calculated
- Employees become eligible after one year of continuous service.
- 21 days’ basic salary for each of the first five years of service.
- 30 days’ basic salary for each year after the fifth year.
- Partial years are paid pro rata.
- The total cannot exceed two years’ basic salary.
- Gratuity is based on basic salary only, not allowances such as housing or transport.
The daily wage used above is the basic monthly salary divided by 30. Unpaid leave and amounts owed to the employer can reduce the final figure, so treat the result as an estimate, not legal advice.
Example
An employee with a basic salary of AED 10,000 who worked for exactly 7 years is owed: (10,000 ÷ 30 × 21 × 5) + (10,000 ÷ 30 × 30 × 2) = AED 35,000 + AED 20,000 = AED 55,000.
Employers: stay compliant
Running payroll, WPS, visas and end-of-service settlements for your team? Set Hub’s HR and PRO services keep your company compliant, and our accounting team can provision for gratuity in your books. Book a consultation.