Gratuity Calculator Umm Al Quwain
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
Umm Al Quwain Free Trade Zone uses this federal formula.
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 The old rule that cut resignation payouts to a third or two thirds sat in Federal Law No. 8 of 1980, which has been repealed. Any tool still applying it is out of date.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 Tools built before 2022 still apply the repealed resignation reductions.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 Umm Al Quwain follows the same federal formula as every other emirate: 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 the calculator above with your basic salary and service dates to get your estimate.
How Gratuity Works for Umm Al Quwain Employees
Umm Al Quwain is the UAE’s second-smallest and least populated emirate, sitting between Ras Al Khaimah and Ajman, with a coastal city center and the inland oasis of Falaj Al Mualla. Its business community is smaller than Dubai’s or Abu Dhabi’s, but the gratuity rules are exactly the same. Whether you work for a mainland UAQ company or an Umm Al Quwain Free Trade Zone (UAQFTZ)-registered employer, Federal Decree-Law No. 33 of 2021 sets your gratuity, with Article 51 giving the formula.
The Gratuity Formula in Umm Al Quwain
Gratuity in Umm Al Quwain 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 Umm Al Quwain Gratuity Calculator
Say you earn AED 3,600 basic salary a month at an Umm Al Quwain company and leave after 1 year and 6 months of service.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 3,600 ÷ 30 | AED 120 |
| Year 1 | 120 × 21 days × 1 year | AED 2,520 |
| Final 6 months (pro rata) | 120 × 21 days × 0.5 year | AED 1,260 |
That total is far below the 2-year cap (24 months × AED 3,600 = AED 86,400), so the full AED 3,780 is owed. Service shorter than one year would earn no gratuity.
Resignation and Termination Are Treated the Same
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.
Umm Al Quwain Free Trade Zone (UAQFTZ)
The Umm Al Quwain Free Trade Zone (UAQFTZ), established in 1987, is a designated free zone with direct access to Umm Al Quwain Port. It offers sector-specific licensing and flexible warehouse leasing to companies in the zone.
Gratuity for UAQFTZ employees follows the same federal formula as the mainland, so your legal entitlement doesn’t change. If you’re unsure which category your employer falls into, your work permit issuer and your contract show it. Check them before you calculate, since an individual employer may offer more than the legal minimum.
Working in Umm Al Quwain: Local Employers and Getting Help
Umm Al Quwain has a smaller business community than Dubai or Abu Dhabi, but the gratuity rules are identical. Check how your pay is split before you calculate. If your package is AED 4,800 a month, made up of AED 3,600 basic plus AED 1,200 in allowances, gratuity is calculated on the AED 3,600 basic. Keep a copy of your contract, payslips that show your basic salary and your start date, since a written record makes any claim easier.
If your employer hasn’t paid within 14 days of your last working day, start with a written request to HR. MOHRE’s website and app let you start a complaint online, so you don’t need to visit an office to begin. MOHRE tries to settle the dispute first and can issue a binding decision for claims up to AED 50,000, while larger or unresolved claims go to the courts. Free zone employees usually start with their zone authority, which tries to mediate and, if that fails, issues a referral letter for MOHRE. Check mohre.gov.ae for the current contact details.
Eligibility Rules That Apply in Umm Al Quwain
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. Employees in UAQFTZ follow the same federal formula as the mainland, so the calculator on this page applies. Check your contract for any enhanced terms.
The daily wage is AED 120. One year at 21 days is AED 2,520 and the final six months add AED 1,260, so the total is AED 3,780.
Keep your contract, payslips showing your basic salary, your start date and a copy of your calculation. If you need to complain, a written record makes the case easier.
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.