UAE Gratuity Calculator 2026
Calculate your estimated UAE end-of-service gratuity based on your basic salary and exact period of service.
Your Employment Details
UAE Labour Law Article 51 FormulaStatutory Calculation Breakdown
| Service Tier | Accrual Rate | Subtotal |
|---|---|---|
| First 5 Years (Years 1–5) | 21 days / yr | AED 35,000.00 |
| Additional Service (Year 6+) | 30 days / yr | AED 15,000.00 |
| Total Gratuity Payable | AED 50,000.00 | |
How Your UAE Gratuity Is Calculated
Statutory Pro-Rata Accrual FrameworkUnder Article 51 of UAE Federal Decree-Law No. 33 of 2021, statutory end-of-service gratuity is calculated on a daily basic wage rate across two distinct tenure tiers:
Daily Basic Wage
Standard daily rate base used for statutory pro-rata calculation.
First 5 Years
Employees accrue 21 days of basic wage for each year in years 1 to 5.
After 5 Years
Service beyond 5 years accrues at 30 days of basic wage per year.
Maximum Cap
Total gratuity payout cannot exceed 2 years (24 months) of basic salary.
Is Gratuity Calculated on Basic Salary or Total Salary?
UAE end-of-service gratuity is strictly calculated using your contractual basic salary, rather than your total gross monthly pay.
- Total Gross Salary: AED 15,000
- Basic Monthly Salary: AED 9,000
- Allowances (Housing & Transport): AED 6,000
The calculation base under Article 51 is:
Housing, transport, utility allowances, overtime, and sales commissions are excluded by law from end-of-service gratuity calculations.
Worked Calculation Example
Case StudySuppose an employee in Dubai has completed 7 continuous years with a basic salary of AED 8,000:
Does Resignation Reduce Gratuity in the UAE?
Under the current UAE Labour Law framework (Federal Decree-Law No. 33 of 2021), legacy resignation deductions (such as the 1/3 or 2/3 penalty on unlimited contracts) have been completely abolished for standard employment contracts.
Eligible employees receive 100% of their statutory Article 51 gratuity entitlement after completing at least one year of continuous service, whether employment ends through voluntary resignation or employer termination, provided contractual notice is observed.
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Official interpretations under UAE Federal Decree-Law No. 33 of 2021
How is gratuity calculated in the UAE in 2026?
Eligible employees generally receive 21 days of basic wage for each year during the first five years and 30 days for each additional year, subject to the applicable conditions and a two-year maximum basic salary cap under Article 51 of Federal Decree-Law No. 33 of 2021.
Is UAE gratuity based on basic salary or total salary?
The standard gratuity calculation is based on the applicable basic wage, not simply the employee's total salary package. Allowances such as housing, transport, utilities, and commissions are excluded.
How many years do I need to work to get gratuity?
Generally, an employee needs at least one full year (12 months) of continuous service to qualify for statutory end-of-service gratuity under the standard private-sector framework.
Does resignation reduce gratuity in 2026?
Under the current UAE Labour Law framework, the old resignation reductions (such as 1/3 or 2/3 deductions for unlimited contracts) are not the normal rule. Current eligible cases generally receive 100% of their calculated Article 51 gratuity whether leaving through resignation or employer termination.
What happens after 5 years of service?
For the first five years of service, gratuity accrues at the rate of 21 days of basic wage per year. For all additional service beyond five years, it accrues at 30 days of basic wage per year.
Is there a maximum gratuity payout limit in the UAE?
Yes. Under Article 51 of the UAE Labour Law, the total statutory end-of-service gratuity cannot exceed the equivalent of two years (24 months) of the employee's basic wage.
Does unpaid leave affect gratuity calculation?
Yes. Certain unpaid absences and unpaid leave days are legally excluded when calculating the continuous service period for gratuity entitlement. The calculator allows you to input unpaid absence days to determine your exact active service.
Does this calculator apply to DIFC?
Not necessarily. The Dubai International Financial Centre (DIFC) operates under its own statutory employment framework with the DIFC DEWS Workplace Savings Scheme, rather than the mainland federal lump-sum gratuity formula.