UAE Gratuity Calculator
Calculate your end-of-service benefits under UAE Labour Law
Estimate your end-of-service gratuity based on the UAE Labour Law (Federal Decree-Law No. 33 of 2021). Enter your basic salary and years of service to see your entitlement.
UAE Gratuity Rules (2026)
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021, effective February 2022), all employees who complete at least 1 year of continuous service are entitled to end-of-service gratuity. The calculation is based on your basic salary only — allowances (housing, transport, etc.) are excluded.
Gratuity Formula
- First 5 years: 21 days' basic salary for each year of service
- After 5 years: 30 days' basic salary for each additional year
- Daily wage: Basic monthly salary / 30
- Cap: Total gratuity cannot exceed 2 years' total salary
Important Notes
- Gratuity is calculated on basic salary only, not total salary
- Parts of a year exceeding one year are calculated proportionally
- If terminated for cause under Article 44, you may forfeit gratuity
- The new law applies to both limited and unlimited contracts (the distinction was removed in 2022)
- Gratuity must be paid within 14 days of the last working day
Frequently Asked Questions
How is gratuity calculated in UAE?
For the first 5 years of service, you receive 21 days' basic salary for each year. After 5 years, you receive 30 days' basic salary for each additional year. Your daily wage is calculated as basic monthly salary divided by 30. The total gratuity amount is capped at 2 years' total salary.
When am I eligible for gratuity in UAE?
You must complete at least 1 year of continuous service with the same employer. If you resign before completing 1 year, you are not entitled to any gratuity payment.
Is gratuity taxed in UAE?
No. The UAE has no personal income tax. Your full gratuity amount is paid to you without any deductions. If you're transferring the money to your home country, check the tax laws there — some countries tax foreign income.
Does gratuity include allowances?
No. Gratuity is calculated on your basic salary only. Housing allowance, transport allowance, phone allowance, and other benefits are excluded from the calculation. Check your employment contract for your basic salary breakdown.