Gratuity Calculator
UAE 2026
Calculate your end-of-service gratuity under Federal Decree-Law No. 33 of 2021. Date-based, tiered, capped at 2 years’ gross salary — a free gratuity calculator for UAE private-sector employees and HR teams handling final settlements.
Calculate GratuityExamples
| Tenure | Basic Salary (AED) | Tier 1 (21 days/yr) | Tier 2 (30 days/yr) | Total Gratuity (AED) |
|---|---|---|---|---|
| 2 years | 5,000 | 7,000.00 | — | 7,000.00 |
| 5 years | 8,000 | 28,000.00 | — | 28,000.00 |
| 7 years | 10,000 | 35,000.00 | 20,000.00 | 55,000.00 |
| 10 years | 15,000 | 52,500.00 | 75,000.00 | 127,500.00 |
Understanding UAE Gratuity
UAE Gratuity at a Glance
A lump-sum payment owed to employees on termination of employment in the UAE private sector, calculated from basic salary and length of service under Federal Decree-Law No. 33 of 2021.
Who Is Eligible?
- Minimum service — at least 1 year of continuous employment
- Private sector — applies to all employees under the UAE Labour Law
- Free zones — some free zones (e.g. DIFC, ADGM) have their own employment rules
- Unpaid leave — days of absence without pay are deducted from total service
- Termination type — applies whether you resign, are terminated, or the contract expires
Getting Your Gratuity Right
- Basic salary only — allowances, housing, transport, and bonuses are excluded
- Legal cap — total gratuity cannot exceed 2 years’ gross salary
- Settlement deadline — employer must pay within 14 days of termination
- Pro-rata — partial years are calculated proportionally (e.g. 3.5 years counts)
Frequently Asked Questions
What is end-of-service gratuity in the UAE?
Under the Federal Decree-Law No. 33 of 2021, employers in the UAE private sector must pay end-of-service gratuity when the employment ends. This applies to all employees who have completed at least one year of continuous service.
How is gratuity calculated under the new labour law?
You can calculate your gratuity based on your salary and length of service. First, calculate your daily rate by dividing your monthly basic salary by 30. For the first 5 years of service, you receive gratuity equal to 21 times your daily rate per year. The gratuity you receive in each subsequent year will be 30 times your daily rate.
Does gratuity include allowances?
No, gratuity is calculated based on your basic salary, which doesn’t include any allowances like housing, transport, or phone. However, if the 2-year gross salary cap applies, the gratuity will be calculated using your total gross salary, which includes your basic salary as well as all allowances.
What is the maximum gratuity I can receive?
No matter how long you have worked, your gratuity cannot exceed 2 years’ gross salary. So, if your gross annual salary is AED 240,000, then your maximum gratuity will be AED 480,000.
When should my employer pay the gratuity?
Under UAE law, employers are required to settle all end-of-service settlements within 14 days of the employment termination date, and any delays beyond this may entitle the employee to file a complaint with the Ministry of Human Resources (MOHRE).
What is the gratuity for unlimited contracts in the UAE?
Gratuity benefits are available under the same conditions across limited as well as unlimited contracts in the UAE. All employees who complete at least one year of continuous service are entitled to a gratuity, which is calculated on the basis of their monthly basic salary.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated based on basic salary.
How is gratuity calculated in the JAFZA free zone?
Gratuity calculations for JAFZA company employees are the same as those for UAE mainland company employees. However, other free zones like DIFC and ADGM apply their own rules to calculate gratuity.
Do I get gratuity if I resign before 1 year?
No, at least one year of continuous employment is necessary to qualify for gratuity.
Need help with payroll & end-of-service settlements?
Skrooge runs accurate payroll, gratuity and final settlements for UAE businesses — clean calculations and HR documentation, fully compliant with UAE labour law.
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