UAE gratuity calculator
Your end-of-service gratuity under the UAE Labour Law, worked out on your basic salary with every step shown.
Short answer: UAE private-sector employees earn gratuity after one year of service: 21 days of basic salary for each of the first five years, then 30 days for each year after, pro-rated for part years. A day's wage is basic ÷ 30, and the total is capped at two years' basic salary.
MoneyBook keeps this number up to date every day, privately on your iPhone.
Download MoneyBookAn estimate for UAE private-sector employees under Federal Decree-Law No. 33 of 2021. Not legal advice.
How UAE gratuity is calculated
This calculator uses the same rules as the gratuity card in the MoneyBook app, based on the UAE Labour Law (Federal Decree-Law No. 33 of 2021) for private-sector employees:
- Nothing before one year of continuous service.
- 21 days of basic salary for each of the first five years.
- 30 days of basic salary for each year after the fifth.
- Part years count, pro-rated by the day (days ÷ 365).
- A day's wage is basic ÷ 30. The law counts in days of wage without saying how to get a day from a month; MOHRE, HR teams and calculators use basic ÷ 30.
- Capped at two years' basic salary (24 × your monthly basic).
- Unpaid leave doesn't count as service. Sick leave and annual leave do.
| Years of service | Days of basic salary |
|---|---|
| Under 1 year | 0 |
| 1 year | 21 |
| 3 years | 63 |
| 5 years | 105 |
| 6 years | 135 |
| 7 years | 165 |
| 10 years | 255 |
| 20 years | 555 |
| 25.5 years or more | 720 (the cap) |
Worked example
Basic salary AED 11,470, exactly 6 years of service.
Daily wage: 11,470 ÷ 30 = AED 382.33
First 5 years: 5 × 21 = 105 days. Year 6: 1 × 30 = 30 days. Total 135 days.
Gratuity: 135 × 382.33 = AED 51,615. The cap (24 × 11,470 = AED 275,280) isn't reached.
Company policies that pay more
Some employers pay more than the law for long service, for example 60 days a year after the tenth year. That's their own policy, so tick the box only if your contract or HR policy says so. The extra rate is tiered: only the years after the tenth count at 60 days, and the legal two-year cap doesn't apply to it.
What this calculator doesn't cover
It doesn't include unpaid salary, leave encashment, notice pay or amounts your employer may lawfully deduct. If you work in DIFC or ADGM, or for the government, different rules apply. For a definite figure, check your contract and ask your HR team or MOHRE. Read the full guide: UAE gratuity rules explained (2026).
Questions
How is gratuity calculated in the UAE?
For private-sector employees under the UAE Labour Law, gratuity is 21 days of basic salary for each of the first five years of service and 30 days of basic salary for each year after that, pro-rated for part years. A day's wage is basic salary ÷ 30, and the total can't be more than two years' basic salary.
Is gratuity calculated on basic or full salary?
On basic salary only. Housing, transport and other allowances aren't included. Your basic is on your contract or payslip.
Do I get gratuity if I leave before one year?
No. There is no gratuity before one year of continuous service.
Does unpaid leave count towards service?
No. Days of unpaid leave don't count as service, so they push your dates back. Sick leave and annual leave do count.
Does this work for DIFC, ADGM or government jobs?
Not exactly. DIFC and ADGM pay into an end-of-service savings plan (like DEWS) instead, and government jobs follow their own pension and gratuity rules. Mainland and free-zone companies such as JAFZA or DMCC follow the UAE Labour Law used here.
More free tools
- Daily budget calculator: how much you can spend per day until pay day.
- Salary planner: split your salary into bills, savings and everyday spending.
- حاسبة مكافأة نهاية الخدمة في الإمارات (Arabic).
Watch your gratuity grow, every day.
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