United Arab Emirates · AED

UAE end-of-service gratuity calculator

Federal Decree-Law 33 of 2021, Article 51 (private sector, mainland)

Work out the end-of-service gratuity an employee in the UAE private sector is owed, from basic salary and length of service.

Basic salary only: housing, transport and other allowances are not counted.
Unpaid leave does not count as service.
Gratuity
—

How gratuity is calculated

  • Who qualifies: employees with at least one year of continuous service. Partial years after the first count pro rata.
  • First five years: 21 days of basic salary for each year.
  • After five years: 30 days of basic salary for each further year.
  • Daily wage: monthly basic salary ÷ 30.
  • Cap: the total cannot exceed 24 months (two years) of basic salary.
  • Exceptions: gratuity can be lost on dismissal for gross misconduct. Free-zone rules (DIFC, ADGM) and government employees follow different schemes.

Worked examples

Basic salaryServiceGratuity
AED 8,0002 yearsAED 11,200
AED 5,0003 years 8 monthsAED 12,833
AED 5,0006 years 4 monthsAED 24,167
AED 25,00012 yearsAED 262,500

Sources: Zoho Payroll Academy: UAE gratuity by tenure (Article 51) · Khaleej Times: gratuity when salary changes. An estimate for planning; MOHRE or the courts decide disputes.

Track gratuity for the whole team

UAE payroll software accrues gratuity every month and produces WPS salary files. See the best payroll software in the UAE.