UAE gratuity calculator, worked out to the day
Enter the dates and the basic salary. You get the gratuity, how it was worked out, and the date it has to be paid by.
In the DIFC, service since 1 February 2020 earns monthly contributions to the DEWS plan instead of a lump sum: 5.83% of basic salary in the first five years, 8.33% after that. What you take home is the plan balance, so your DEWS statement is the figure to rely on.
Based on Article 51 of Federal Decree-Law No. 33 of 2021, checked against the official text in October 2026. For full-time employees; an estimate, not legal advice.
How gratuity is worked out
Four steps, all from Article 51. The only figure you need from a payslip is the basic salary.
Count the service
From the first working day to the last, less any unpaid leave or absence. Under one year, nothing is due.
Art. 51(2) and 51(4)Find the daily wage
The last monthly basic salary divided by 30. Allowances are left out, however large.
Art. 51(5)Apply the two rates
21 days’ wage for each of the first five years, 30 days’ for each year after. Part years count in proportion.
Art. 51(2) and 51(3)Check the cap, then pay
The total can never exceed two years’ wage, and it is due within 14 days of the contract ending.
Art. 51(6) and 53
Worked example
AED 10,000 basic, seven full years, no unpaid leave.
- Daily wage, 10,000 ÷ 30
- AED 333.33
- Years 1 to 5, 5 × 21 days
- AED 35,000
- Years 6 and 7, 2 × 30 days
- AED 20,000
- Gratuity
- AED 55,000
Resigned or let go, the gratuity is the same
Under the old 1980 law a resignation cut the gratuity. The law that replaced it in February 2022 has no such reduction, yet many calculators still ask how the job ended.
| Resigned after | Old law | Since 2022 |
|---|---|---|
| 1 to 3 years | 1/3 | Full |
| 3 to 5 years | 2/3 | Full |
| Over 5 years | Full | Full |
The employer may still deduct amounts it is owed by law or under a court judgment.
Questions we are asked most
Is gratuity calculated on basic or total salary?+
On the last basic salary. Housing, transport and other allowances are not included, so the basic salary in your contract is the figure that matters.
What if I leave before completing one year?+
No gratuity is due. The entitlement starts once one year of continuous service is complete, and from then on part years count in proportion.
Does this apply to UAE nationals?+
No. UAE nationals receive end-of-service benefits under the pensions and social security law instead. This calculator is for foreign employees in the private sector.
I work part-time. Can I use this?+
Part-time workers are entitled to gratuity too, reduced in proportion to the hours in the contract under the Executive Regulation. This calculator assumes full-time work, so ask us for the part-time figure.
My employer is in the savings scheme. Does this still apply?+
Employers who join the government’s voluntary end-of-service savings scheme pay monthly contributions into an approved fund instead of a lump sum. If yours has joined, the fund statement shows what you are owed for the period it covers.
We are an employer. Can you keep this in our books?+
Yes. As part of our payroll service we work out the gratuity for every employee each month, record it in your accounts, and check each final settlement before it is paid.
Settling a final payment, or provisioning for a team?
Thirty minutes with an accountant who works with UAE payroll every month. Bring the contract and the dates, and we will check the figure with you.
- Free first consultation
- No obligation
- Response within 24 hours