Guide · updated 16.08.2026 · 8 min read · Lucent Legal team
UAE gratuity (end of service) calculator — online, 2026
Key points
- The formula under Law No. 33/2021: 21 days of basic salary for each of the first 5 years, and 30 days for every year after.
- Only the basic salary counts. Housing, transport, and other allowances stay out of the sum.
- The right to gratuity opens after 1 full year of continuous service, and partial years after the first count pro rata.
- The maximum payout is two years of basic salary, or 24 monthly base salaries.
- Under today's fixed-term contracts, gratuity is due both on termination and on resignation.
Drag the sliders and the calculator works out your end-of-service gratuity live, using the formula of Federal Decree-Law No. 33/2021: 21 days of basic salary for each of the first five years, 30 days for every year after, capped at two years' salary. Treat the number as an estimate. In a dispute, MOHRE or the court sets the exact figure.
Your gratuity
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Legal cap applied: two years of basic salary.
Estimate per the formula of Law No. 33/2021. “Basic salary” means the basic salary figure in your contract, not your take-home total; unpaid leave days do not count towards tenure.
How the formula works
Law No. 33/2021 (Art. 51) sets two rates: 21 days of basic salary for each of the first five years, and 30 days for every year after the fifth. The daily rate is your monthly basic salary divided by 30. After the first full year, service counts pro rata — work 3 years and 6 months and you get paid for 3.5 years. For a fuller breakdown with examples and the cases where you can lose the payout, see "Gratuity in the UAE: how it is calculated by law".
Three things most often make the real amount differ from what people expect:
- The base is basic salary only. If your contract splits pay into a base plus allowances (housing, transport), gratuity comes off the base alone. That's legal, and it changes the number a lot.
- Unpaid leave doesn't count toward tenure.
- Old unlimited contracts in force before the 2022 reform could apply reduction coefficients on resignation. If that's your case, check the details or ask a lawyer.
If the employer does not pay
The employer must pay gratuity within 14 days of your last working day (Art. 53). If they don't, the route is standard: a written demand, then a complaint to MOHRE, then the labour court. The step-by-step plan sits in "Unpaid salary in the UAE", and the mechanism is the same.
FAQ
Is gratuity calculated on the full salary or only the basic salary?
Only on the basic salary stated in your contract. Housing, transport, and other allowances stay out, and that follows directly from Law No. 33/2021.
Do I get gratuity if I resign?
Under today's fixed-term contracts, yes — the formula matches what you'd get if the employer terminated you. The resignation reduction coefficients went away with the old unlimited contracts. If your contract predates the 2022 reform, check its type.
I worked 9 months — do I get anything?
No. The right to gratuity opens after one full year of continuous service. After the first year, partial periods count pro rata.
Is there a maximum payout?
Yes, two years of basic salary, or 24 monthly base salaries. The calculator applies this cap automatically.
How accurate is this calculator?
It runs the general formula of Law No. 33/2021 and gives a solid estimate. The final amount can shift because of unpaid leave, how your contract structures pay, an old contract type, or deductions. In a dispute, MOHRE or the court sets the figure.
Sources
Topic: UAE Labour Law 2026
This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.