Guide · updated 31.07.2026 · 8 min read · Lucent Legal team
UAE gratuity (end of service) calculator — online, 2026
Key points
- Formula under Law No. 33/2021: 21 days of basic salary for each of the first 5 years of service and 30 days for every year after that.
- Only the basic salary counts — housing, transport and other allowances are excluded from the calculation.
- The right to gratuity starts after 1 full year of continuous service; after the first year, partial years count pro rata.
- The maximum payout is two years of basic salary (24 monthly base salaries).
- Under the current fixed-term contracts, gratuity is due both on termination and on resignation.
Drag the sliders — the calculator computes your end of service gratuity on the fly 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 it as an estimate: in a dispute the exact amount is set by MOHRE or the court.
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
The calculation in Law No. 33/2021 (Art. 51): for each of the first five years of service — 21 days of basic salary; for every year after the fifth — 30 days. The daily rate is the monthly basic salary divided by 30. After the first full year, service counts pro rata — work 3 years and 6 months, get paid for 3.5 years. For a detailed breakdown with examples and the situations where you can lose the payout, see “Gratuity in the UAE: how it is calculated by law”.
Three things that most often make the real amount differ from expectations:
- The base is basic salary only. If your contract splits pay into a base plus allowances (housing, transport), gratuity is calculated on the base alone. That is legal — and it changes the number a lot.
- Unpaid leave does not count towards tenure.
- Old unlimited contracts in force before the 2022 reform could apply reduction coefficients on resignation — if that is your case, check the details or ask a lawyer.
If the employer does not pay
Gratuity must be paid within 14 days of your last working day (Art. 53). If it is not, the route is standard: a written demand, then a complaint to MOHRE, then the labour court. The step-by-step plan is in “Unpaid salary in the UAE” — 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 employment contract. Housing, transport and other allowances are excluded — this follows directly from Law No. 33/2021.
Do I get gratuity if I resign?
Under the current fixed-term contracts — yes, the formula is the same as when the employer terminates you. 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 starts 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 (24 monthly base salaries). The calculator applies this cap automatically.
How accurate is this calculator?
It uses the general formula of Law No. 33/2021 and is good for an estimate. The final amount can differ because of unpaid leave, how your contract structures pay, an old contract type or deductions — in a dispute the amount is set by MOHRE or the court.
Sources
This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.