Gratuity Calculator UAE 2026 — Free MOHRE-Compliant End of Service Tool
Instantly calculate your end-of-service benefit under Federal Decree-Law No. 33 of 2021. Trusted by thousands of UAE expats.
- MOHRE Compliant
- 100% Free
- All Emirates
- Updated 2026
Estimate your end of service gratuity based on basic salary and service period.
What Is Gratuity in UAE?
Gratuity also called an end-of-service benefit (EOSB) is a lump sum payment your employer must pay you when your employment ends. It does not matter whether you resign, are terminated, or your contract expires. As long as you have completed at least one year of continuous service, you are entitled to it under UAE Labour Law.
The legal basis for gratuity in the UAE is Federal Decree-Law No. 33 of 2021, which governs all private sector employment relationships in the country. Article 51 of this law sets out the exact formula and rules. This content has been verified against the 2026 provisions of the law by an HR and labour law professional.
Who Qualifies as an Eligible Employee?
Any private sector employee who has worked for the same employer for at least one full year qualifies for gratuity. This applies to both UAE nationals and expatriate workers. Part-time employees also qualify under the 2021 law, with benefits calculated on a pro-rata basis. Domestic workers fall under a separate ministerial regulation but are also entitled to end-of-service benefits.
Workers employed in free zones such as JAFZA, DMCC, and Dubai South are covered by federal law unless they are in DIFC or ADGM, which operate under their own frameworks.
What Counts as Basic Salary in UAE Gratuity?
Only your basic monthly salary is used in the gratuity formula. Housing allowances, transport allowances, food allowances, commissions, and any other benefits are excluded from the calculation. Always check your employment contract for the specific basic salary figure the number on your bank transfer may include allowances, which are not part of the gratuity base.
UAE Gratuity Calculation Breakdown
No hidden steps. No rounding tricks. Each part shows exactly where the number comes from.
How to Calculate Gratuity in UAE
The calculation is straightforward once you understand the two rules that govern it. Below is a featured-snippet–ready guide you can follow to verify your own entitlement or simply use our Gratuity Calculator UAE above to get the result automatically.
21 Days Rule (First 5 Years)
For each of the first five years of service, gratuity is calculated at:
21 days of basic salary per year
30 Days Rule (After 5 Years)
For every year beyond five years, gratuity is calculated at:
30 days of basic salary per year
Basic Salary Only
The calculation uses your basic monthly salary only.
Maximum Gratuity Cap
The total gratuity amount cannot exceed two years of your basic salary, even if your service exceeds that period.
This is how gratuity is calculated in UAE, step by step, without assumptions or shortcuts.
Who Is Eligible for Gratuity in UAE?
Under Federal Decree-Law No. 33 of 2021, regulated by the Ministry of Human Resources and Emiratisation, gratuity applies to private-sector employees who complete at least one year of continuous service.
It covers both resignation and termination, provided the employment does not end due to serious misconduct as defined by UAE labour regulations. The rule applies consistently across all Emirates.
Employees should ensure their UAE Labour Card status is active before final settlement. If you worked extra hours, use our Overtime Calculator UAE to calculate what you are owed alongside your gratuity.
You’re Eligible If:
1 Year Completed Service
Your service must reach one full year with the same employer.
Resignation or Termination
Gratuity applies whether you resign or your employment ends, unless dismissal falls under legally defined misconduct.
Private Sector Employment
These rules apply to private-sector roles governed by UAE labour law.
Employment Anywhere in UAE
The benefit applies to employees working in Dubai, Abu Dhabi, Sharjah, and all other Emirates.
This keeps gratuity eligibility in the UAE clear, consistent, and predictable, regardless of where you worked or how your service ended.
What Is Not Included in UAE Gratuity
Allowances
Housing, transport, other monthly allowances aren’t included.
Bonuses
Performance or annual bonuses don’t form part of gratuity.
Overtime
Extra hours worked don’t affect the calculation.
Commission
Sales or incentive-based earnings stay out.
UAE Gratuity Calculation Examples
Example 1: 2 years of service
Basic salary: AED 5,000
Daily rate: 5,000 ÷ 30 = AED 166.67
Gratuity: 2 × 21 days × 166.67 ≈ AED 7,000
Example 2: 6 years of service
Basic salary: AED 8,000
Daily rate: 8,000 ÷ 30 = AED 266.67
Gratuity: (5 × 21 days + 1 × 30 days) × 266.67 ≈ AED 36,000
Example 3: Partial year service
Basic salary: AED 10,000
Service: 4 years and 6 months
Gratuity is prorated for the extra months, not rounded off, and added to the total based on the same daily rate.
These examples mirror what the calculator shows, so the result feels familiar when you run your own numbers.
Working in a free zone? Read our complete guide on JAFZA Gratuity Calculator for free zone-specific rules.
Gratuity Calculator for Dubai, Abu Dhabi & All UAE
This gratuity calculator in UAE works for employees in Dubai, Abu Dhabi, Sharjah, and across all Emirates. Whether you’re checking figures for a gratuity calculator Dubai use case or a gratuity calculator Abu Dhabi scenario, the rules stay consistent nationwide, so the result follows the same calculation logic everywhere.
FAQs UAE Gratuity
Disclaimer
This calculator is for informational use only. It provides an estimated gratuity amount based on the details you enter and current UAE labour rules. It’s not legal advice. For disputes or official clarification, refer to MOHRE or a qualified UAE labour professional.
Muhammad Awais – UAE Labour Law & HR Consultant
This gratuity calculator and content are reviewed by Muhammad Awais, with practical experience in UAE labour law and employee benefits.
✔ Based on UAE Labour Law (Federal Decree Law No. 33 of 2021)
✔ Covers real-world HR scenarios
✔ Updated for accuracy and clarity