Gratuity Calculator Abu Dhabi
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
Masdar City, KEZAD, twofour54 and other zones use this federal formula. ADGM has its own Employment Regulations, so pick ADGM above if that is your employer.
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 The old rule that cut resignation payouts to a third or two thirds sat in Federal Law No. 8 of 1980, which has been repealed. Any tool still applying it is out of date.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 Tools built before 2022 still apply the repealed resignation reductions.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.

Gratuity in Abu Dhabi is calculated the same way as the rest of the UAE: 21 days of basic salary for each of your first five years, then 30 days for every year after that, capped at two years’ total salary. Use this along with the calculator above to check what you’re owed before you resign, get terminated, or plan a job change.
How Gratuity Works for Abu Dhabi Employees
Abu Dhabi is home to more government entities, semi-government firms (ADNOC, Mubadala, ADQ subsidiaries) and large private employers than any other emirate, but the gratuity rules for private-sector staff here are exactly the same as in Dubai or Sharjah. There’s no separate “Abu Dhabi law.” What’s different is the mix of employers, and one notable exception inside the emirate: Abu Dhabi Global Market (ADGM), the financial free zone on Al Maryah and Al Reem Island, which runs under its own employment regulations rather than the federal law covered here.
For everyone else working for a mainland Abu Dhabi company or a standard free zone employer, Federal Decree-Law No. 33 of 2021 sets the rules, and Article 51 sets the formula.
The Gratuity Formula in Abu Dhabi
Gratuity in Abu Dhabi uses the standard federal formula: 21 days’ basic pay for each of the first five years and 30 days for each year after that. Our UAE gratuity calculator and step-by-step guide shows the full calculation and the two-year cap.
Worked Example
Say you earn AED 13,500 basic salary a month at an Abu Dhabi mainland company and leave after 7 years of service, whether you resign or are terminated.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 13,500 ÷ 30 | AED 450 |
| Years 1 to 5 | 450 × 21 days × 5 years | AED 47,250 |
| Years 6 and 7 | 450 × 30 days × 2 years | AED 27,000 |
That total is well under the 2-year cap (24 months × AED 13,500 = AED 324,000), so the full AED 74,250 is owed. If your employer is in ADGM, check your own contract instead.
Resignation vs Termination: No Difference Today
After one year of service, resigning or being terminated gives the same gratuity under the current law. The old law vs new law guide explains what changed.
What Is the Rule About ADGM?
If your employer is registered in Abu Dhabi Global Market on Al Maryah Island or Al Reem Island, you’re not covered by the calculator formula on this page. ADGM runs under its own employment regulations, separate from Federal Decree-Law No. 33 of 2021. Check your ADGM employment contract directly, or read our DIFC and ADGM gratuity guide for how that framework compares to the standard federal rules.
Abu Dhabi Free Zones and Where to Complain
Abu Dhabi has several free zones, and which gratuity rules apply depends on the zone that issued your licence. Abu Dhabi’s investment office lists ADGM, Masdar City Free Zone, Abu Dhabi Airport Free Zone, the Industrial City of Abu Dhabi (ICAD), KEZAD, twofour54 and Tawazun Industrial Park, among others.
ADGM is the exception. Its employment regulations, in force since 1 April 2025, remove the two-year cap and let employers offer a savings or pension scheme in place of gratuity, so the calculator on this page may not match your contract. For employers in the other zones the federal formula generally applies as on the mainland, so confirm the zone and licensing authority on your offer letter before you rely on it.
If a mainland employer doesn’t pay, send a written request to HR with your own calculation, then file a complaint with MOHRE through its app or website. MOHRE tries to settle the dispute first and can issue a binding decision itself for claims up to AED 50,000. Larger or unresolved claims go to the courts. Free zone employees should ask their zone authority whether it runs a first-stage settlement before a case reaches MOHRE or the courts.
Check how your pay is split before you calculate. Many Abu Dhabi offer letters quote one package made up of basic salary plus housing, transport and other allowances. Only the basic salary counts toward gratuity (Article 1), so use the basic amount on your contract, not the full package. On a AED 20,000 package with AED 12,000 basic, gratuity is calculated on AED 12,000.
Eligibility Rules That Apply in Abu Dhabi
Eligibility is the same here as in the rest of the UAE: at least one year of continuous service, with unpaid leave days not counting toward your service. The eligibility section on our homepage covers the full rules.
FAQs
No. ADGM has its own employment regulations. The version in force since 1 April 2025 removes the two-year cap and lets employers offer a savings scheme as an alternative to gratuity. Check your ADGM contract rather than this calculator.
Free zones other than ADGM and DIFC generally follow the federal formula. If your employer is licensed in Masdar City, KEZAD, twofour54, ICAD or another Abu Dhabi zone, confirm the rule with your contract or your HR team.
Write to HR first, then file a complaint with MOHRE through its app or website. MOHRE tries to settle the dispute and can issue a binding decision for claims up to AED 50,000. Larger or unresolved claims go to the courts.
This page provides general information about UAE gratuity rules and is not legal advice. For a specific dispute or unusual employment situation, consult MOHRE or a licensed UAE labour lawyer.
