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?
End-of-service gratuity is a lump-sum payment that employers in the UAE private sector must pay to employees when their employment ends. It is mandated by Federal Decree-Law No. 33 of 2021 and applies to all employees who have completed at least one year of continuous service.
How is gratuity calculated under the new labour law?
Gratuity is based on your basic salary and length of service. For the first 5 years, you receive 21 days’ pay per year. For each additional year beyond 5, you receive 30 days’ pay per year. The daily rate is your monthly basic salary divided by 30.
Does gratuity include allowances?
No. Gratuity is calculated on basic salary only — housing, transport, phone, and other allowances are excluded. However, the 2-year gross salary cap uses your total gross salary (basic + all allowances).
What is the maximum gratuity I can receive?
The total gratuity amount cannot exceed 2 years’ gross salary, regardless of how long you have worked. For example, if your gross salary is AED 20,000/month, the maximum gratuity is AED 480,000 (20,000 × 24 months).
When should my employer pay the gratuity?
Under UAE law, employers must settle all end-of-service entitlements — including gratuity — within 14 days of the employment termination date. Delayed payment may entitle the employee to file a complaint with the Ministry of Human Resources (MOHRE).
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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