UAE gratuity calculator
A full-time foreign worker in the UAE private sector who completes one year of continuous service earns end-of-service gratuity of 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after that. Part years count in proportion, and the total cannot exceed two years' wage.
How the calculation works
The calculator follows Article 51 of Federal Decree-Law No. 33 of 2021. It uses the last basic salary, never allowances such as housing or transport, and counts service from the joining date to the last working day minus any unpaid days of absence.
A day's wage is taken as the monthly basic salary divided by 30, the convention SupaJack Construct's payroll uses for settlements. Service years are worked out to four decimal places from the number of days served divided by 365.25. The result is rounded to the fils.
| Length of continuous service | Gratuity earned | Source |
|---|---|---|
| Less than 1 year | None | Article 51(2) and (3) |
| Years 1 to 5 | 21 days' basic wage for each year, part years in proportion | Article 51(2)(a) |
| Each year after 5 | 30 days' basic wage for each year, part years in proportion | Article 51(2)(b) |
| Any length | Total capped at two years' wage (24 months' basic) | Article 51(6) |
What reduces or changes the amount
- Unpaid absence is not counted as service (Article 51(4)), so enter those days in the calculator.
- Emirati workers receive end-of-service benefits under the pensions and social security legislation instead (Article 51(1)).
- The employer may deduct amounts owed under the law or a court judgment (Article 51(7)).
- Part-time and other work patterns follow the Implementing Regulation (Article 52), so this calculator applies to full-time workers.
- Since the 2021 law, resigning no longer reduces gratuity: the same formula applies whether the worker resigns or is dismissed.
Where it fits in a contractor's payroll
For a contractor, gratuity is a liability that grows every month for every worker on site. SupaJack Construct accrues it monthly, posts it to the accounts by project, and works out the final settlement from the same rules, so the figure in a settlement matches the provision already in the books. Read the guide to UAE labour rules for contractors, or use the gratuity calculator, overtime calculator, annual leave calculator.
Related terms: gratuity, basic salary, overtime, rest day, annual leave and WPS. You can also see how SupaJack Construct runs payroll or sign in.
Worked example
A site engineer joined on 1 March 2019 and leaves on 28 February 2026 with a basic salary of AED 9,000 a month and no unpaid absence. That is 2,556 days, or 6.9979 years. The day's wage is 9,000 ÷ 30 = AED 300. The first five years earn 300 × 21 × 5 = AED 31,500. The remaining 1.9979 years earn 300 × 30 × 1.9979 = AED 17,981.10. Gratuity is AED 49,481.10, below the AED 216,000 cap.
Questions people ask
Who is entitled to gratuity in the UAE?
A full-time foreign worker in the private sector who has completed at least one year of continuous service. Emirati workers are covered by the pensions and social security legislation instead.
Is gratuity calculated on basic salary or total salary?
On the last basic salary only. Housing, transport and other allowances are not included.
How many days per year is gratuity in the UAE?
21 days' basic wage for each of the first five years and 30 days for each year after that.
Is there a maximum gratuity?
Yes. The total cannot exceed two years' wage, which the calculator applies as 24 months of basic salary.
Do I lose gratuity if I resign?
No. Under Federal Decree-Law 33 of 2021 the same formula applies whether you resign or are dismissed, provided you completed one year of continuous service.
Are part years counted?
Yes. Once one year of continuous service is completed, part years are paid in proportion to the time worked.
Do unpaid leave days count towards service?
No. Days of unpaid absence are not included in the service period.
How soon must gratuity be paid?
The employer must pay wages and all end-of-service entitlements within 14 days of the end of the contract (Article 53).
Why is a day's wage basic salary divided by 30?
The law sets the number of days' wage per year but not the divisor. Dividing the monthly basic by 30 is the common convention and the one SupaJack Construct uses in settlements.
Does this calculator apply to part-time workers?
No. Part-time and other work patterns follow the Implementing Regulation, which pro-rates by contracted hours.
Sources
- Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationship (MOHRE, consolidated with amendments)
- End of service benefits for workers in the private sector (u.ae)
- Federal Decree-Law Regarding the Regulation of Employment Relationship (UAE Government portal copy)
- Ministry of Human Resources and Emiratisation