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UAE · End-of-service gratuity

UAE end-of-service gratuity calculator.

Type your basic monthly salary and years of service. See the gratuity you've accrued under UAE Federal Labour Law.

Your inputs

Basic salary only — not gross. Allowances don't count toward gratuity.

Workers with less than 1 year of continuous service are not entitled to gratuity under UAE Federal Labour Law.

End-of-service gratuity

AED 19,600.00

Daily basic salaryAED 266.67
First 5 years (21 × daily)73.5 days
After 5 years (30 × daily)0 days
Total days of basic salary73.5 days

Calculation per UAE Federal Labour Law (Decree-Law No. 33 of 2021). Calculator is a starting point — not legal advice. Specific cases (early termination, DIFC contracts, transfers between entities) may differ.

How the maths works

The formula in plain English.

Step 1 · Daily basic

Daily basic = Monthly basic ÷ 30

UAE Labour Law treats gratuity in calendar days of basic salary — divided by 30, not 22 or working days.

Step 2 · Years served (pro-rated)

Years = total days served ÷ 365.25

Partial years count. A worker with 4 years and 6 months counts as 4.5 years for the formula.

Step 3 · First 5 years

21 × Daily basic × Years (capped at 5)

Each of the first five years accrues 21 days of basic salary.

Step 4 · After 5 years

30 × Daily basic × (Years − 5)

Every year beyond five accrues 30 days of basic salary. Added to step 3.

The cap

Total gratuity is capped at two years' basic salary (24 × monthly basic). We apply this automatically — for very long-tenured workers the calculator shows the capped value.

FAQ

The questions UAE teams ask us first.

This calculator is a starting point — not legal advice. For a specific case, check with HR or a labour lawyer.

Which salary do I enter — basic or gross?

Basic monthly salary only. UAE end-of-service gratuity is calculated on basic, not on housing, transport, or other allowances. Get that wrong and you'll over-estimate by a lot.

How does the 21 vs 30 days split work?

For the first five years of service, you accrue 21 calendar days of basic salary per year. From year six onwards, you accrue 30 calendar days per year. The two periods are added together.

Is there a cap?

Yes. Total end-of-service gratuity can't exceed two years' worth of basic salary (24 months of basic). We apply the cap automatically.

Do partial years count?

Yes. Service is pro-rated by the day. Six months of service = 0.5 years for gratuity. Workers with less than one full year of service are not entitled.

What about resignation vs termination?

Under the post-Feb-2022 Labour Law reforms, end-of-service gratuity follows the same formula regardless of who ends the contract — provided the worker completes one full year. Earlier limited/unlimited-contract reductions no longer apply broadly. Talk to your HR or a labour lawyer if you have an older arrangement.

Does this work for DIFC?

DIFC workers fall under DEWS (Defined-contribution Employee Workplace Savings), not the federal gratuity scheme. This calculator is for the federal scheme that covers most of the UAE. A DEWS calculator is on the way.

Run UAE payroll on Naasflow

Gratuity accrued every month. Surfaced on the worker record.

Same calculation built into the platform — running every cycle, ready on the day a worker leaves. WPS, GPSSA, and gratuity, on one record.

See UAE payroll