Gratuity Calculator UAE
Employment details
Housing, transport, overtime, bonuses and commission are excluded by law. Use the basic figure on your MOHRE contract.
Contract type, unpaid leave and other adjustments
Unpaid leave does not count towards your length of service, so it reduces the gratuity.
Everything else you are owed
Notice pay and unpaid salary use your full salary. Leave encashment and gratuity use basic salary only.
An employer may only deduct amounts allowed by law or a court judgment (Articles 25 and 51(7) of Federal Decree-Law No. 33 of 2021).
Where your service sits on the scale
What a later leaving date is worth
Move the slider to push your last working day forward and see exactly what each extra month adds before you hand in your notice.
How your gratuity builds up over time
Assumes unbroken service at your current basic salary.
Year by year
How this is worked out
The formula
- Daily wage is your basic monthly salary divided by 30.
- Each of your first five years earns 21 days of that daily wage.
- Every year after the fifth earns 30 days.
- Part years are paid pro rata once you pass one full year.
- The total can never exceed two years' wage, applied here to basic salary.
Since February 2022, resignation and termination are treated the same way. The old rule that cut resignation payouts to a third or two thirds sat in Federal Law No. 8 of 1980, which has been repealed. Any tool still applying it is out of date.
Why calculators disagree
Run the same numbers through three tools and you can get three answers. Almost always it comes down to one of these:
- Basic versus gross. Gratuity uses basic pay only. Entering your full package inflates the result badly.
- Day count. Some tools divide service by 365, others by 360 or by calendar months, which shifts part years.
- Old law logic. Tools built before 2022 still apply the repealed resignation reductions.
- Unpaid leave. Most tools ignore it entirely, so they overstate long absences.
This calculator counts whole calendar years first and pro-rates the part year by whole months, then days. Your last working day counts as a day worked, so 1 January to 31 December is exactly one year. It applies current 2026 rules and shows every line so you can check the arithmetic against your own payslip.
General information only, not legal advice. Your contract, free zone rules and any MOHRE ruling take precedence. For a disputed settlement, contact MOHRE or a qualified UAE employment lawyer before signing anything, including a waiver letter.
Your UAE gratuity is 21 days of basic salary for each of your first five years of service, plus 30 days for every year after that, capped at two years’ basic salary. You qualify after one year of continuous service, whether you resign or are terminated, under Article 51 of Federal Decree-Law No. 33 of 2021.
The UAE gratuity calculator above turns that rule into a settlement statement as you type. It’s a free online gratuity calculator UAE employees can use on any phone or computer, and you can run this UAE gratuity calculator online in two modes: Gratuity only for your end of service gratuity, or Full final settlement for everything your employer owes you. Everything below follows the calculator section by section, then explains how to calculate end of service in UAE mainland and free zone jobs, and how end of service benefits in UAE law are decided under the current 2026 rules.
How to Calculate Gratuity in UAE: MOHRE Rules, Step by Step
To calculate gratuity in the UAE, divide your basic monthly salary by 30 to get your daily wage. Multiply it by 21 days for each of your first five years, then by 30 days for each year after that. Add both parts, then check the total doesn’t exceed 24 months of basic salary.
That’s the whole calculation of gratuity in UAE law, and it’s how to calculate your gratuity in UAE private-sector jobs whichever emirate you work in. The calculator runs it for you in five steps, shown below in the same order as the tool.
Step 1: Choose Gratuity Only or Full Final Settlement
The two tabs at the top of the calculator decide what you’re calculating. Gratuity only gives your end of service gratuity under Article 51. Full final settlement adds unpaid salary, unused leave, notice pay, your ticket home, and lawful deductions, so you can calculate end of service UAE employers owe you in one statement.
Start with Gratuity only if you just want the headline number. Switch to Full final settlement when you’re checking your employer’s settlement letter line by line. It works as an end of service benefits calculator UAE employees can use on the mainland or in most free zones, because the same federal rule applies across all seven emirates.
Step 2: Enter Your Employment Details
Enter your basic monthly salary, your first working day, and your last working day, then pick your reason for leaving. The figure builds as you type, so you’ll see your estimated gratuity the moment all three core fields are filled.
- Basic monthly salary (basic only, not gross): Use the basic figure on your MOHRE contract. Housing, transport, overtime, bonuses and commission are excluded by law (Article 1).
- First working day: The law counts continuous service from the day you started work, not the date your visa was stamped.
- Last working day: Your actual or expected final day. The calculator counts the days between the two dates.
- Reason for leaving: Choose Resignation, Termination by employer, Contract ended / not renewed, or Dismissed for gross misconduct. Under the current law, the first three give exactly the same gratuity. Gross misconduct is covered below under Article 44.
Step 3: Set Your Employment Type and Unpaid Leave
Open Contract type, unpaid leave and other adjustments to tell the calculator how you’re employed and how much unpaid leave you’ve taken. Most people in the UAE leave the employment type on Standard full-time, which covers mainland companies and most free zones.
| Employment type | What the calculator does | Legal basis |
|---|---|---|
| Standard full-time (mainland or free zone) | Applies the 21/30-day formula to your basic salary | Article 51 |
| Part-time or job-sharing | Asks for the full-time equivalent basic salary and your contracted hours as a share of full-time, then applies that percentage | Article 30, Cabinet Resolution No. 1 of 2022 |
| Domestic worker | Uses a 10-day payment deadline; treat any gratuity figure as an estimate only | Federal Decree-Law No. 9 of 2022 |
| DIFC or ADGM employee | Doesn’t produce a lump-sum gratuity, because these zones run their own systems | DIFC Employment Law No. 2 of 2019; ADGM Employment Regulations |
Unpaid or unauthorised leave taken (days): Unpaid leave doesn’t count toward your length of service (Articles 33(2) and 51(4)), so the calculator subtracts these days before it runs the formula. Unpaid leave is the most overlooked factor in end of service benefits in UAE calculations.
Step 4: Add Everything Else You’re Owed (Full Final Settlement Only)
In Full final settlement mode, an extra panel opens for the rest of your dues. Enter your total monthly salary, unused leave days, unpaid salary days, any notice paid in lieu, your repatriation ticket, and lawful deductions. The calculator adds them to your gratuity and shows the settlement total.
| Field | What to enter | How it’s paid | Legal source |
|---|---|---|---|
| Total monthly salary (basic + allowances) | Your full monthly package. Leave it blank to use basic | Used for unpaid salary and notice pay | Articles 43 and 53 |
| Unused annual leave (days) | Accrued leave days you haven’t taken | Paid on basic wage | Article 29(9) |
| Salary still unpaid (days) | Days you’ve worked but haven’t been paid for | Paid at your full daily wage | Article 53 |
| Notice paid in lieu (days) | Notice days your employer didn’t ask you to work | Paid at your full wage | Article 43(3) |
| Repatriation ticket (AED) | The cost of your ticket home | Employer pays unless you’ve joined a new employer or caused the termination | Article 13(12) |
| Lawful deductions (loans, advances) | Amounts you genuinely owe your employer | Only the five grounds allowed by law | Article 51(7); Article 29, Cabinet Resolution No. 1 of 2022 |
This is the full and final settlement UAE law requires your employer to pay within 14 days. For a detailed walkthrough of each line, including how to calculate final settlement in UAE disputes, see our final settlement guide.
Step 5: Calculate and Read Your Settlement Statement
Select Calculate gratuity, or Calculate settlement in settlement mode, and your settlement statement appears beside the form. It lists each part of the calculation with the article behind it, your total, and the date your employer must pay by. Clear and start again resets every field.
The statement shows how to calculate the gratuity in UAE law for your exact dates, line by line. It’s the same EOSB calculation UAE HR teams run when you leave, and it also works as an EOSB calculator UAE employees can use to double-check a settlement letter before signing it. The same five steps show how to calculate end of service benefits in UAE mainland companies by hand.
What Your Result Shows
Your result is more than one number. The calculator shows a line-by-line statement, a meter against the two-year cap, your payment deadline, a service timeline, a slider for later leaving dates, a growth chart, and a year-by-year table. Here’s how to read each one.
Knowing how to check gratuity in UAE settlements means reading all of these, not just the headline figure.
Your Settlement Statement
The statement shows your estimated gratuity at the top, then each line of the working: years 1 to 5 at 21 days, year 6 onwards at 30 days, any cap reduction, and any part-time adjustment. It also shows your exact service in years, months, and days, after unpaid leave.
In settlement mode, the gratuity becomes one line, followed by the other amounts owed and a total settlement tagged with Article 53. Every figure is an estimate, not a legal statement of your entitlement.
The Two-Year Cap Meter
The cap meter shows how close you are to the maximum gratuity limit in UAE law, two years’ basic salary under Article 51(6). It shows the percentage used and the headroom left. Once you hit 100%, further service adds nothing, though a pay rise still raises the cap.
Your Payment Deadline
Below the statement, the calculator gives the exact date your employer must pay by: 14 days after your last working day under Article 53, or 10 days for domestic workers. The gratuity payment UAE employers make is due with your final wages and other dues.
Where Your Service Sits on the Scale
The timeline bar shows your service against the five-year mark. Years 1 to 5 fill at 21 days per year, and year 6 onwards fills at 30 days per year, so you can see at a glance which rate your next year of work will earn.
What a Later Leaving Date Is Worth
The Stay longer by slider pushes your last working day forward by up to three years and shows exactly what each extra month adds. It’s built for the moment before you hand in your notice, when a few weeks can change your gratuity pay significantly.
The note under the slider changes with your service:
- Under one year: it shows the date you become eligible. Leaving a day before that date pays no gratuity at all.
- Between one and five years: it shows how many months you are from the five-year mark, when the rate rises from 21 to 30 days a year.
- Past five years: each extra month adds 2.5 days of basic salary.
- At the cap: staying longer adds nothing, though a higher basic salary would.
How Your Gratuity Builds Up Over Time
The chart plots your gratuity against years of service, assuming unbroken service at your current basic salary. You’ll see the steeper climb after the five-year mark, the flat line once the two-year cap applies at about 25.5 years, and a marker at your own position.
Below it, the Year by year table lists each year’s rate (21 or 30 days), how much that year adds, and the total accrued, with your current year flagged. Select Show all years to extend it.
Share, Save or Convert Your Gratuity Result
Four buttons sit under your result: Copy summary, WhatsApp, Copy link, and Save as PDF. You can also switch the currency from AED to US dollars, at the pegged rate of 3.6725, or to any other currency using your own exchange rate. Here is also INR option available for Indian currency.
- Copy summary: a plain-text breakdown you can paste into an email to HR.
- WhatsApp: sends the same summary with a link.
- Copy link: a link that reopens the calculator with your salary and dates filled in.
- Save as PDF: opens your browser’s print dialog so you can save the statement as a PDF.
The currency switch shows your EOSB (UAE dirhams by default) in US dollars or Indian currency, and keeps the dirham figure alongside it.
UAE Gratuity Calculation Formula
The UAE gratuity calculation formula comes from Article 51 of Federal Decree-Law No. 33 of 2021. It pays 21 days of basic wage per year for years one to five and 30 days per year after that, with partial years paid pro rata and a total cap of two years’ wage.
Here’s how to calculate UAE gratuity by hand, or how to compute gratuity in UAE dirhams if you want to check the tool:
Daily wage = Basic monthly salary ÷ 30
Gratuity = (Daily wage × 21 × years 1 to 5)
+ (Daily wage × 30 × each year after year 5)
Maximum = Basic monthly salary × 24
| Rule | What it means |
|---|---|
| Daily wage = basic ÷ 30 | Article 67 |
| Service ÷ 365 | Article 67 |
| Basic salary only | Article 1, Article 51(2) |
| 21 days/year, years 1–5 | Article 51(2)(a) |
| 30 days/year after year 5 | Article 51(2)(b) |
| Partial years count | Article 51(3) |
| Unpaid absence excluded | Article 51(4) |
| Last basic salary used | Article 51(5) |
| Two-year cap | Article 51(6) |
The gratuity formula UAE law sets is the same whether you resign or are terminated, and gratuity calculation as per UAE labour law always uses your last basic salary.
This is how gratuity is calculated in UAE mainland companies, and it’s also how end of service is calculated in UAE free zones such as JAFZA and DMCC. The gratuity calculation formula in UAE free zones is the same everywhere except DIFC and ADGM, covered further down.
How the Calculator Counts Your Service
The calculator counts the days between your first and last working day, subtracts unpaid leave, and divides by 365, because Article 67 counts a year as 365 days and a month as 30. That’s how to count gratuity in UAE law, and it’s why part years are paid to the day.
The calculation of end of service in UAE law starts from the day you began work, not your visa date. For gratuity, UAE labour law then removes unpaid days before any formula is applied. Because the calculator uses real calendar dates, its result can differ from the round examples on this page by a few dirhams when your service spans a leap year.
What Is Gratuity in UAE Law?
Gratuity is the lump-sum payment your employer owes you when your job ends, set by Article 51 of the UAE Labour Law. It’s also called end of service benefits (EOSB) and is a legal right for private-sector workers with a year of service, not a bonus your employer can skip. It’s paid once, when you leave.
Gratuity Calculation in UAE: Worked Examples
The easiest way to understand gratuity calculation in UAE law is with real numbers. Each example below is a full gratuity computation in UAE dirhams, using basic salary only and a 30-day month, exactly as Article 51 and Article 67 require. Run the same figures through the calculator to compare.
How Much Gratuity After 2 Years in UAE?
After 2 years, you receive 42 days of basic salary: 21 days for each year. On a basic salary of AED 5,000, that works out to AED 7,000. Your daily wage is AED 166.67 (5,000 ÷ 30), and 166.67 × 21 × 2 gives the total.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 5,000 ÷ 30 | AED 166.67 |
| Years 1 and 2 | 166.67 × 21 × 2 | AED 7,000 |
| Cap check | 5,000 × 24 = AED 120,000 | Not reached |
| Total gratuity | AED 7,000 |
That’s how to calculate gratuity in UAE for 2 years of service. If you left at 2 years and 6 months, the extra half year adds 10.5 days (21 × 0.5), or AED 1,750, for a total of AED 8,750.
Gratuity After 7 Years and 6 Months
Once you pass five years, each extra year earns 30 days instead of 21. On a basic salary of AED 8,000 with 7.5 years of service, the first five years pay AED 28,000 and the remaining 2.5 years pay AED 20,000, for a total of AED 48,000.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 8,000 ÷ 30 | AED 266.67 |
| Years 1 to 5 | 266.67 × 21 × 5 (105 days) | AED 28,000 |
| Years 6 to 7.5 | 266.67 × 30 × 2.5 (75 days) | AED 20,000 |
| Cap check | 8,000 × 24 = AED 192,000 | Not reached |
| Total gratuity | AED 48,000 |
Part-Time Example: 50% of Full-Time Hours
A part-time worker whose full-time equivalent basic salary is AED 6,000, working half of full-time hours for 3 years, gets half the full-time gratuity. The full-time figure is AED 12,600 (200 × 21 × 3), so the part-time gratuity is AED 6,300. The calculator shows this as a separate Part-time pro rata line.
Gratuity by Years of Service
This table shows gratuity at a basic salary of AED 10,000 so you can see how the amount grows, just like the calculator’s Year by year table. For a different salary, scale it: at AED 5,000 basic, halve every figure. The cap is reached at 25.5 years, whatever the salary.
| Years of service | Days earned | Gratuity at AED 10,000 basic |
|---|---|---|
| Under 1 | 0 | AED 0 |
| 1 | 21 | AED 7,000 |
| 2 | 42 | AED 14,000 |
| 3 | 63 | AED 21,000 |
| 5 | 105 | AED 35,000 |
| 7 | 165 | AED 55,000 |
| 10 | 255 | AED 85,000 |
| 15 | 405 | AED 135,000 |
| 20 | 555 | AED 185,000 |
| 25 | 705 | AED 235,000 |
| 25.5 or more | 720 (cap) | AED 240,000 |
Maximum Gratuity Limit in UAE: When the 2-Year Cap Applies
The maximum gratuity limit in UAE law is two years’ basic salary (Article 51(6)). Because the first five years earn 3.5 months and each later year adds one month, the cap only applies after about 25.5 years of service. Your salary level doesn’t change this.
Here’s the cap at work for someone earning AED 15,000 basic after 30 years:
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 15,000 ÷ 30 | AED 500 |
| Years 1 to 5 | 500 × 21 × 5 | AED 52,500 |
| Years 6 to 30 (25 years) | 500 × 30 × 25 | AED 375,000 |
| Uncapped total | 52,500 + 375,000 | AED 427,500 |
| Two-year cap | 15,000 × 24 | AED 360,000 |
| Actual payout | Capped | AED 360,000 |
In the calculator, this shows as a 2-year salary cap applied line and a full cap meter.
What Counts as Basic Salary in the UAE?
Only your basic salary counts. Article 1 of the UAE Labour Law defines basic wage as the wage stated in your contract, excluding all allowances and in-kind benefits. So if your package is AED 12,000 but your basic salary is AED 6,000, your gratuity is built on AED 6,000.
These items are excluded from the gratuity base:
- Housing allowance
- Transport or conveyance allowance
- Travel allowance
- Overtime pay
- Food or meal allowance
- Medical allowance
- Utility allowance
- Children’s education allowance
- Representation allowance
- Cashier’s allowance
- Commissions
- Bonuses
- Furniture allowance
Getting the basic salary calculation in UAE contracts right is the biggest single factor in your gratuity. The gratuity calculation UAE labour law requires uses basic salary only, which is why the calculator’s first field says basic only, not gross, and no EOS calculation UAE payroll teams run may include allowances. Every gratuity calculation in UAE labour law also uses your final pay: when calculating gratuity in UAE payroll, Article 51(5) uses your last basic salary for your entire service, so a raise in your final year lifts the value of every year you’ve worked.
Some employers set a low basic salary with a large allowance package. That’s legal, but it shrinks gratuity, so check the split before you sign a new contract or accept a restructured one.
Gratuity Eligibility in UAE: Am I Eligible?
You’re eligible once you complete one year of continuous service with the same employer, under Article 51(2). It doesn’t matter whether you resign, are terminated, or your contract ends. Below one year, no gratuity is due. After it, every extra month and day counts toward your total.
| Situation | Effect on gratuity | Legal source |
|---|---|---|
| Under 1 year of service | No gratuity | Article 51(2) |
| Probation period | Counts toward service if you stay on | Article 9(2) |
| Contract renewed or extended | All terms add up as one continuous period | Article 8(4) |
| Company sold or restructured | Service continues with the new owner | Articles 1 and 48 |
| Unpaid leave | Days removed from service | Articles 33(2) and 51(4) |
| Unpaid absence after maternity leave (up to 45 days) | Not counted as service | Article 30(2) |
| Partial years after year 1 | Paid pro rata | Article 51(3) |
| Resigning during probation | No gratuity (under one year) | Article 51(2) |
If you’re under a year, the calculator shows how many days you still need to serve and the date you become eligible.
These gratuity rules in UAE labour law cover full-time foreign workers in the private sector. Article 3 excludes federal and local government employees, the armed forces and police, and domestic workers, who each have their own rules. UAE nationals are covered by pension law instead (Article 51(1)).
How Is End of Service Calculated in UAE for Part-Time Workers?
Part-time and job-sharing workers get a pro-rated gratuity. Choose Part-time or job-sharing in the calculator, enter the basic salary a full-time employee in your role earns, and your contracted hours as a share of full-time. The tool applies that percentage, as Article 30 of Cabinet Resolution No. 1 of 2022 sets out.
Article 52 of the Decree-Law hands this calculation to the Implementing Regulation. Temporary contracts shorter than one year earn no gratuity. Our part-time gratuity guide walks through more examples.
Resignation vs Termination: New UAE Labour Law Gratuity Calculation
Under the current law, resignation and termination pay the same gratuity. Article 51 uses one formula for every full-time worker who completes a year, with no reduction for resigning. The 1/3 and 2/3 resignation cuts people still quote come from the repealed 1980 law, not today’s rules.
That’s why, in the calculator, Resignation, Termination by employer, and Contract ended / not renewed all return the same figure. What differs is notice, not gratuity:
| Resignation | Termination by employer | |
|---|---|---|
| Gratuity after 1 year | Full, same formula | Full, same formula |
| Notice period | 30 to 90 days, as your contract states (Article 43) | Same, unless Article 44 applies |
| Notice not worked | You owe a notice allowance | Employer owes a notice allowance (Article 43(3)) |
| Job-search time | Not applicable | One unpaid day per week during notice (Article 43(5)) |
| Under 1 year | No gratuity | No gratuity |
Article 45 also lets you quit without notice and keep your end of service rights in four cases: your employer breaches its obligations and doesn’t fix it within 14 working days of you notifying MOHRE, your employer assaults or harasses you (reported within 5 working days), there’s a grave danger at work the employer ignores, or you’re moved to fundamentally different work without your written consent.
Old Law vs New Law: What Changed
The UAE replaced Federal Law No. 8 of 1980 with Federal Decree-Law No. 33 of 2021 on 2 February 2022 (Articles 73 and 74). The gratuity formula stayed the same, but resignation cuts, unlimited contracts, and old misconduct forfeiture rules went away.
Can Gratuity Be Denied or Reduced?
The only automatic reason for no gratuity is having less than one year of service. After that, your employer can reduce it only through lawful deductions under Article 51(7) and Article 29 of Cabinet Resolution No. 1 of 2022. Dismissal without notice under Article 44 doesn’t automatically cancel it.
Is Gratuity Taxable in the UAE?
No. The UAE has no personal income tax, so UAE end of service benefits, including your gratuity payment, are paid in full with nothing withheld. If you’re still a tax resident of another country, such as India, the UK, or the US, you may need to report it there, so check with a tax adviser at home.
Dismissal Under Article 44 (Gross Misconduct)
Article 44 of the UAE Labour Law lets an employer dismiss you without notice for 10 specific reasons, after a written investigation and a written, justified decision. Unlike old Article 120, the current text has no clause removing gratuity, so if you’ve served a year, you generally keep it, minus any proven, lawful deductions.
The calculator lists Dismissed for gross misconduct as a separate reason because it’s the exit most likely to end in a dispute. The 10 grounds are:
- 1Impersonating someone or submitting forged documents
- 2A mistake causing gross losses, or deliberate damage to company property (the employer must inform MOHRE within 7 working days)
- 3Breaking written, posted safety rules you were told about
- 4Repeatedly failing your basic duties after a written investigation and two dismissal warnings
- 5Disclosing a work secret that causes loss or personal gain
- 6Being drunk or under the influence at work, or breaching public morals at the workplace
- 7Assaulting your employer, manager, or colleagues at work
- 8Unjustified absence of more than 20 intermittent days in a year, or more than 7 days in a row
- 9Exploiting your position for personal gain
- 10Joining another company without following the required procedures
Article 39(1)(g) also lists termination as a disciplinary penalty and states the worker keeps end of service benefits. If you’re dismissed under Article 44, keep the written decision and investigation record, don’t sign anything waiving your rights, and raise any dispute with MOHRE.
The 5 Lawful Deductions From Gratuity
Article 51(7) lets employers deduct amounts owed under law or a court judgment, and Article 29 of Cabinet Resolution No. 1 of 2022 limits this to five categories. Anything outside them, such as recruitment costs, can’t lawfully come out of your gratuity. Enter these in the calculator’s Lawful deductions field.
- 1Loans or overpaid wages you owe
- 2Pension or insurance contributions you owed but didn’t pay
- 3Penalties under an approved company disciplinary policy
- 4Debts ordered by a court
- 5Damage caused by your negligence or by breaking instructions
Recruitment fees are the employer’s cost by law (Article 6(4)), so they can’t be recovered from you this way.
No Claim Letters Don’t Cancel Your Rights
Some employers ask departing staff to sign a letter saying they have no further claims. Under Article 65(3), any waiver or settlement that gives up rights the law guarantees is void. Signing one doesn’t erase your legal gratuity, though it’s smarter to query errors before you sign.
Can a Bank Take Your Gratuity?
Yes, in some cases. Under Central Bank of UAE Notice No. 3692/2012, a bank can claim or freeze your gratuity against a personal loan in default or when your employment ends with the loan unpaid. This is between you and your bank, separate from your employer’s duty to pay.
When Must Your Employer Pay Your Gratuity?
At end of service, UAE law gives your employer 14 days to pay your gratuity, final wages, and all other dues (Article 53). If a worker dies in service, Article 15 allows 10 days to pay the family, and domestic workers have a 10-day deadline under their own law.
The calculator works out this date for you and shows it under your statement.
What to Do If Your Employer Doesn’t Pay
Start with a written request to HR, then file a complaint with MOHRE through its app or website. MOHRE tries to settle the dispute first and, for claims up to AED 50,000, can issue a binding decision itself under Article 54. Larger or unresolved claims go to the labour court.
Gratuity vs Final Settlement: What’s the Difference?
Gratuity is one item inside your final settlement, not the whole thing. Your full and final settlement also includes unpaid wages, unused leave, notice pay, and your ticket home, minus lawful deductions. Switch the calculator to Full final settlement to see both together in one statement.
That makes the tool a UAE final settlement calculator as well as a gratuity calculator. In any settlement calculation in UAE disputes, the most common gap is leave: leave salary and gratuity calculation in UAE law both use basic salary, not your full package, while unpaid wages and notice pay use your full wage.
| Component | What it covers | Legal source |
|---|---|---|
| End of service gratuity | The 21/30-day formula on basic salary | Article 51 |
| Unpaid wages | Salary up to your last working day | Article 53 |
| Unused annual leave | Paid for accrued days, calculated on basic wage | Article 29(9) |
| Notice allowance | Wage for any notice period not worked | Article 43(3) |
| Repatriation cost | Ticket home, unless you’ve joined a new employer or caused the termination | Article 13(12) |
| Unlawful termination compensation | Up to 3 months’ wage if dismissed for filing a genuine complaint or lawsuit | Article 47 |
| Deductions | Only the five lawful categories | Article 51(7), Cabinet Resolution No. 1 of 2022, Article 29 |
The calculator’s settlement mode covers every line except unlawful termination compensation, which is decided by MOHRE or a court. Unemployment insurance under Federal Decree-Law No. 13 of 2022 is a separate scheme and isn’t part of your employer’s settlement.
Special Cases: Part-Time, Domestic Workers, DIFC and ADGM, UAE Nationals, and Death in Service
The standard formula covers full-time expat employees on the mainland and in most free zones, including JAFZA, DMCC, and DAFZA. The calculator’s Employment type menu handles the main exceptions, and the table below explains each one, plus the groups the calculator doesn’t cover.
| Group | Rule | Legal source | More detail |
|---|---|---|---|
| Part-time and job-sharing | Pro-rated by contracted hours | Cabinet Resolution No. 1 of 2022, Article 30 | part-time gratuity guide |
| Domestic workers | Separate law with a 10-day payment window. The 2022 law doesn’t set its own gratuity formula; the repealed 2017 law used 14 days’ basic wage per year | Federal Decree-Law No. 9 of 2022; Cabinet Decision No. 106 of 2022 | domestic worker gratuity guide |
| DIFC employees | DEWS savings scheme replaces lump-sum gratuity | DIFC Employment Law No. 2 of 2019 | why DIFC and ADGM are different |
| ADGM employees | ADGM’s own Employment Regulations apply | ADGM Employment Regulations | Same page |
| UAE nationals | Pension and end of service benefits through GPSSA, not the 21/30 formula | Article 51(1); Federal Law No. 7 of 1999 and Federal Law No. 57 of 2023 | UAE nationals and GPSSA guide |
Every emirate uses the same federal formula, so you can use this tool to calculate gratuity UAE-wide, from Abu Dhabi to Fujairah. Each emirate page runs this same calculator with local context. See our pages for gratuity calculator Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah and other remaining emirates.
Death in Service
If a worker dies during employment, Article 15 has the employer hand the family all wages, dues, and end of service benefits within 10 days. If the death came from a work injury, Article 37(3) adds compensation of 24 months’ basic wage, between AED 18,000 and AED 200,000.
A worker can name, in writing, which family member should receive these payments. The employer also pays to transport the body home if the family asks (Article 15(3)).
The Voluntary Savings Scheme
Article 51(8) lets the Cabinet approve alternatives to lump-sum gratuity, and Cabinet Resolution No. 96 of 2023 created one: an optional savings scheme. Employers who join pay monthly contributions into approved investment funds instead of a lump sum, so the calculator’s lump-sum figure won’t apply to the enrolled period.
Why Different Gratuity Calculators Show Different Totals?
When two calculators disagree, the cause is almost always one of five things: basic versus gross salary, the day count, old-law resignation cuts, unpaid leave, or a missing two-year cap. The gratuity formula hasn’t changed since 2022, so a correct end of service calculation should match your employer’s figure.
| Cause | What goes wrong | What this calculator does |
|---|---|---|
| Basic versus gross | Entering your full package inflates the result badly | Uses basic salary only |
| Day count | Dividing service by 360, or by calendar months, shifts part years | Divides service days by 365 (Article 67) |
| Old law logic | Tools built before 2022 still apply the 1/3 and 2/3 resignation cuts | Applies current 2026 rules |
| Unpaid leave | Ignored, so long absences are overstated | Subtracts unpaid days first |
| Two-year cap | Ignored for long service | Applies the cap and shows it on the meter |
Every end of service calculation UAE companies make should follow the same Article 51 rules. If the gratuity calculation UAE employers give you doesn’t match the calculator, check these five inputs first, then ask HR for their working. The gratuity computation UAE payroll software produces is only as good as the salary and dates fed into it.
Many people search for a MOHRE gratuity calculator UAE residents can use, or a Ministry of Labour gratuity calculator. MOHRE (formerly the Ministry of Labour) sets and enforces the rules. CheckGratuityUAE is independent and accurate UAE end of service gratuity calculator, it applies the same Article 51 formula, so you don’t need a separate MOHRE calculator for a reliable estimate. People searching gratuity calculator UAE MOHRE usually want exactly that: a tool that follows MOHRE’s rules. An end of service calculator, UAE MOHRE guidance, and your HR department should all land on the same figure when the inputs match.
If a site’s gratuity calculator formula doesn’t match Article 51, every figure it gives you will be off, so before trusting any gratuity calculator in UAE search results, a spreadsheet, or a colleague’s estimate, check the five causes in the table above. The Dubai Development Authority also runs its own calculator for its free zones at dda.gov.ae.
Common Gratuity Calculation Mistakes
Most gratuity errors come from using the wrong inputs, not the wrong formula. The usual ones are using gross instead of basic salary, counting from your visa date, forgetting unpaid leave, and applying old resignation cuts. Check each one in the calculator before you raise a dispute or sign your final settlement.
UAE Labour Laws That Govern Gratuity
The main gratuity law in the UAE is Federal Decree-Law No. 33 of 2021, together with its Implementing Regulation, Cabinet Resolution No. 1 of 2022. MOHRE publishes both, along with the domestic workers law, on its official laws page.
Knowing where each rule sits in UAE labour law for gratuity helps if you ever need to quote it. Gratuity under UAE labour law comes from Article 51, which sets the formula for private-sector jobs in mainland companies. Most end of service disputes turn on one of the articles below.
Federal Decree-Law No. 33 of 2021 (UAE Labour Law)
| Article | What it says about gratuity |
|---|---|
| Article 1 | Defines basic wage (no allowances) and continuous service (from first working day, including a legal successor) |
| Article 3 | Excludes government employees, armed forces and police, and domestic workers |
| Article 6(4) | Employers can’t charge workers recruitment costs |
| Article 8(3) and 8(4) | Fixed-term, renewable contracts; renewals count as continuous service |
| Article 9(2) | Probation counts toward service |
| Article 13(2) and 13(12) | No withholding of documents; employer pays repatriation |
| Article 15 | Death in service: family paid within 10 days |
| Article 29(9) | Unused leave paid on basic wage |
| Article 33(2) | Unpaid leave excluded from service |
| Article 37(3) | Work-injury death compensation, on top of gratuity |
| Article 39(1)(g) | Termination as a penalty keeps end of service benefits |
| Article 43 | Notice of 30 to 90 days; notice allowance |
| Article 44 | Dismissal without notice: 10 grounds and required procedure |
| Article 45 | Quitting without notice while keeping end of service rights |
| Article 47 | Unlawful termination: up to 3 months’ wage |
| Article 51 | The gratuity formula, pro rata, cap, deductions, alternative schemes |
| Article 52 | Gratuity for part-time and other work patterns |
| Article 53 | 14-day payment deadline |
| Article 54 | MOHRE disputes, AED 50,000 decisions, one-year claim limit |
| Article 55 | No court fees for workers’ claims up to AED 100,000 |
| Article 65(3) and 65(7) | Waivers void; workers’ dues have priority |
| Article 67 | A month counts as 30 days and a year as 365 days |
| Article 68 | Converting unlimited contracts; legacy calculation option |
| Articles 73 and 74 | 1980 law repealed; new law in force from 2 February 2022 |
Other laws and regulations
| Law | What it covers |
|---|---|
| Cabinet Resolution No. 1 of 2022, Article 29 | The five lawful deductions from gratuity |
| Cabinet Resolution No. 1 of 2022, Article 30 | Part-time and job-sharing formula; no gratuity for temporary work under one year |
| Federal Decree-Law No. 14 of 2022 | Amended contract rules (Article 8) |
| Federal Decree-Law No. 20 of 2023 | Amended the dispute process (Article 54) |
| Federal Decree-Law No. 9 of 2022 and Cabinet Decision No. 106 of 2022 | Domestic workers and their end of service rights |
| Federal Decree-Law No. 13 of 2022 | Unemployment insurance, separate from gratuity |
| Cabinet Resolution No. 96 of 2023 | Voluntary alternative end of service savings scheme |
| Federal Law No. 7 of 1999 and Federal Law No. 57 of 2023 | Pensions and end of service for UAE nationals |
| Central Bank of UAE Notice No. 3692/2012 | Bank claims on gratuity for loan default |
FAQs
This page explains general gratuity and end of service benefit rules under UAE labour law and is meant as guidance, not legal advice. Individual cases can vary, so for a specific dispute or unusual employment situation, it’s worth checking directly with MOHRE or a licensed UAE labour lawyer. CheckGratuityUAE (checkgratuityuae.com) reviews this page against current UAE labour law, but it does not replace professional legal advice.