Finance

UAE End-of-Service Gratuity Calculator

Calculate your UAE end-of-service gratuity precisely under Article 51 of the UAE Labour Law (Federal Decree-Law No. 33 of 2021) — full gratuity whether by resignation or termination, with the 2-year salary cap applied automatically.

Last monthly basic salary Basic salary only — excludes housing, transport, or any other allowances, unlike Saudi Arabia.

Start date

End date (or expected date)

Reason for termination

Enter your details and press "Calculate" to see your result here.

About this calculator

What the result means

Under Article 51 of the UAE Labour Law (Federal Decree-Law No. 33 of 2021), an employee is entitled to a full end-of-service gratuity after completing at least 1 year of continuous service, calculated on the last basic salary only (excluding housing, transport, or other allowances): 21 days' wage for each of the first 5 years, then 30 days' wage for each subsequent year, with partial years prorated. The key difference from older systems: the current law completely abolished the distinction between resignation and employer termination — an employee who completed 1+ year receives the full calculated gratuity regardless of who ended the relationship, except in the case of dismissal for gross misconduct (specific grounds defined in the law), which forfeits the entitlement entirely. The total gratuity must never exceed 2 years' worth of basic salary in any case.

Recommendation

Make sure to use the basic salary only in the calculation — not the total salary including allowances, a common mistake that inflates expectations without legal basis. Observe the legal notice period (30 to 90 days depending on your length of service) before submitting your resignation to avoid any dispute or compensation claim from the employer. If you work within a free zone like DIFC or ADGM, the labor regulations there are independent and may differ in detail from this calculator — check that free zone's specific system. Don't sign a final settlement or visa-cancellation form before confirming your full entitlements have actually been deposited into your bank account.

Frequently asked questions

Are housing and transport allowances included in my gratuity calculation?

No. Unlike Saudi Arabia, UAE gratuity is calculated on the basic salary only, excluding any allowances (housing, transport, utilities, furniture), unless the employment contract explicitly states otherwise.

I resigned after 3 years — will my gratuity be reduced?

No. The current law (Federal Decree-Law No. 33 of 2021) abolished the old graduated reduction system for early resignation. As long as you completed a full year or more, you get the full calculated gratuity whether you resigned or your service was terminated.

Is there a maximum cap on the end-of-service gratuity?

Yes, the total gratuity must not exceed 2 years' (24 months') worth of the last basic salary, regardless of the actual number of years served.

When is my gratuity forfeited entirely?

Only in the case of dismissal for gross misconduct falling under the grounds explicitly specified in the Labour Law (such as fraud or serious breach of trust), or leaving work without observing the notice period in certain cases.

Does this calculator apply to DIFC or ADGM free zone employees?

No. These two free zones operate under their own independent employment regulations that differ from the federal Labour Law applied elsewhere in the country — check that free zone's specific employment regulations for an accurate calculation.