UAE Gratuity Calculator 2026: End of Service Benefits
Work out your UAE end-of-service gratuity under Federal Labour Law 2022 โ 21 days of basic salary per year for the first five years, then 30 days per year. Free and private.
Last updated: June 2026
Basic salary only โ not housing, transport or other allowances.
Since 2022, resignation and termination receive the same gratuity.
Total gratuity
- End-of-service gratuity
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๐ Important
Gratuity is based on basic salary only โ allowances are excluded. ADGM and DIFC employees follow their own schemes (DIFC uses the DEWS savings plan), not this federal formula.
What your years of service are really worth
When you leave a job in the UAE, your employer owes you an end-of-service payment called gratuity. This UAE gratuity calculator works it out under the current Federal Decree-Law No. 33 of 2021, which came into force in February 2022. Enter your monthly basic salary and how long you have worked, and you get your gratuity in seconds, with a clear breakdown of how it was built up.
The formula is simple once you know the rule. For the first five years of service you earn 21 days of basic salary for each year. From the sixth year onward, that rises to 30 days of basic salary per year. Your daily basic salary is just your monthly basic divided by 30. The whole gratuity is capped at two years' worth of basic salary, no matter how long you stay. You must complete at least one year of continuous service to qualify at all.
One thing trips people up every time: gratuity is calculated on basic salary, not your total package. If half your pay is housing and transport allowance, your gratuity is based only on the basic half. The 2022 law also removed the old penalties for resigning early, so resignation and termination now pay exactly the same. Planning your next move? Pair this with our emergency fund calculator and budget calculator to make the payout last.
Disclaimer: This calculator estimates mainland UAE end-of-service gratuity under Federal Decree-Law No. 33 of 2021. Your final amount depends on your exact basic salary, unpaid leave deductions and any company policy. ADGM/DIFC schemes differ. The INR figure is indicative only. Confirm with your employer or a labour-law adviser. Full disclaimer.
How it works
Three quick steps โ no account, nothing uploaded to a server.
Enter your basic salary
Use your monthly basic pay โ exclude housing and other allowances.
Add your service length
Enter completed years and any extra months of continuous service.
See your gratuity
Get your total end-of-service payout with a day-by-day breakdown.
Rates and rules on this page are verified against UAE Ministry of Human Resources and Emiratisation (MOHRE). Last checked July 2026.
FAQ
Frequently asked questions
How is UAE gratuity calculated in 2026?
Under UAE Federal Decree-Law No. 33 of 2021 (effective February 2022), end-of-service gratuity is based on your basic salary only. For the first five years of service you earn 21 days of basic salary per year, and for each year beyond five years you earn 30 days of basic salary per year. The daily basic salary is your monthly basic divided by 30. The total gratuity is capped at two years' worth of basic salary. You must complete at least one year of continuous service to qualify.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated on your basic salary only, not your total package. Housing allowance, transport allowance, and other benefits are excluded. This is why your gratuity can look smaller than expected if a large part of your pay is made up of allowances. Check your contract or payslip for the basic salary figure and enter that amount.
Do I lose gratuity if I resign?
No. Under the 2021 UAE Labour Law, resignation and termination are treated the same way for gratuity. The old penalties that reduced gratuity for employees who resigned before five years (under the previous unlimited-contract rules) have been removed. As long as you have completed at least one year of continuous service, you receive the full calculated gratuity whether you resign, are terminated, reach the end of your contract, or retire.
What happens if I worked less than one year?
If your total continuous service is less than one year, you are not entitled to any end-of-service gratuity under UAE federal law. Once you cross one year, you become eligible, and partial years beyond that are pro-rated by the number of completed months. This calculator returns zero for service under one year and pro-rates everything above it.
Do ADGM and DIFC follow the same rules?
No. Employees in the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC) are covered by their own employment laws and, in DIFC, a workplace savings scheme (DEWS) that replaces the traditional gratuity. The federal 21-day and 30-day formula in this calculator applies to mainland UAE employment. If you work in a financial free zone, check your specific scheme.
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