UAE Gratuity Calculator 2026 | Free MOHRE End-of-Service Tool

Q: Is gratuity calculated on basic salary or gross salary?

UAE gratuity is calculated on basic wage only. Housing, transport, and other allowances are excluded.

Q: Do I get gratuity if I resign?

Yes, under the current UAE Labour Law, employees on new-style contracts receive gratuity whether they resign or are terminated, provided they completed one year of service.

Q: Does free-zone employment follow the same gratuity rules?

Most free zones follow the federal Labour Law, but DIFC and ADGM have their own frameworks. DIFC employees may be covered under the DEWS scheme instead of traditional gratuity.

Q: Does the calculator work for domestic workers?

No. Domestic workers are covered by a separate law, Federal Decree-Law No. 9 of 2022. This calculator is for private-sector employees under Federal Decree-Law No. 33 of 2021.

UAE Gratuity Calculator

iThis estimate is based on UAE Labour Law. Results may vary. Not legal advice.

See calculation method →

Service duration

3y 11m 14d

Daily basic wage

AED 333.33

Gratuity days

57.5

Cap (2 years' wage)

AED 240,000

Gratuity, end of service, EOSB — one calculation

This tool works as a UAE gratuity calculator, an end-of-service (EOSB) calculator, and a final settlement calculator — the terms refer to the same end-of-service benefit paid under Federal Decree-Law No. 33 of 2021. It is also what people mean by an indemnity or severance pay calculator in the UAE. Whichever term you searched for, the computation is the same: basic wage, length of service, and the 21/30-day formula.

The estimate applies to mainland private-sector staff in every emirate, so it serves equally as a gratuity calculator for Dubai and Abu Dhabi. Some cases follow different rules: DIFC and ADGM free zones run their own schemes (DIFC uses DEWS), and domestic workers fall under a separate law. For a full walkthrough by emirate and contract type, see the gratuity in UAE guide, the Dubai and Abu Dhabi guides, or how gratuity is calculated step by step.

How the UAE gratuity calculator works

This calculator applies the formula from Federal Decree-Law No. 33 of 2021: 21 days of basic wage per year for the first 5 years of service, plus 30 days per year beyond that, capped at 2 years' basic wage. It uses your last drawn basic salary — not gross — divided by 30 to get the daily rate, then multiplied by total gratuity days accrued.

Unpaid leave days are subtracted from your service period before gratuity days are calculated. Partial years are pro-rated proportionally. Under the current law, resignation and termination receive the same gratuity — the old penalty for resigning early has been removed for new-style contracts.

The calculator gives an estimate for mainland private-sector employees. DIFC, ADGM, and government employees may follow different rules. For a step-by-step walkthrough of each input and how to check the result by hand, see how gratuity is calculated in the UAE. For the full breakdown of eligibility, formula tiers, salary base, worked examples, and how to audit an employer worksheet, read the complete gratuity guide.

Limited vs unlimited contract gratuity

Private-sector contracts under Federal Decree-Law No. 33 of 2021 are limited (fixed-term) contracts. Employers had to convert older unlimited contracts, and MOHRE's extended deadline for doing so was 31 December 2023. Fixed-term contracts can be renewed, and the law sets no maximum length.

The gratuity formula does not change with the contract label, which is why this calculator does not ask for your contract type. A full-time expatriate employee earns 21 days of basic wage per year for the first 5 years and 30 days per year after that, capped at 2 years' basic wage. Part-time gratuity is pro-rated by contracted hours, so this full-time estimate will be too high for part-time staff. If your employment ended before the current law took effect on 2 February 2022, older rules may apply, so check with MOHRE.

Gratuity calculation examples for 2026

The quickest way to understand the formula is to see it applied. These worked examples use the same method as the UAE gratuity calculator above, on a basic salary of AED 10,000 — a daily wage of AED 10,000 ÷ 30 = AED 333.33.

3 years of service3 × 21 days = 63 days → AED 21,000

5 years of service5 × 21 days = 105 days → AED 35,000

7 years of service(5 × 21) + (2 × 30) = 165 days → AED 55,000

10 years of service(5 × 21) + (5 × 30) = 255 days → AED 85,000

After five years the accrual rate rises from 21 to 30 days per year, and the total is capped at two years' basic wage — AED 240,000 in this example. Change the salary or dates in the gratuity calculator to see your own 2026 figure instantly.

MOHRE and your end-of-service gratuity

End-of-service gratuity is governed by the Ministry of Human Resources and Emiratisation (MOHRE) under Federal Decree-Law No. 33 of 2021. MOHRE does not approve each figure individually, but it enforces the rules this gratuity calculator follows: the benefit is calculated on the basic wage only, the employer must pay all end-of-service dues within 14 days of the contract ending, and salaries are monitored through the Wages Protection System (WPS). If an employer underpays or delays, you can file a complaint through the MOHRE app, the MOHRE website, or a Tasheel service centre.

Who can use this gratuity calculator

The gratuity calculator is built for mainland private-sector employees who have completed at least one year of continuous service — the minimum threshold for any gratuity under the law. It works for both resignation and termination, for limited (fixed-term) contracts, and across all seven emirates, so it doubles as a gratuity calculator for Dubai, Abu Dhabi, Sharjah and the rest. Employees in DIFC or ADGM free zones, government staff, and domestic workers follow separate systems and should check those rules instead of relying on this estimate.

Researched and reviewed by Raja Qaiser, Researcher · Last updated 2026.

Reminder

These figures are estimates based on UAE Labour Law. Your actual settlement depends on your contract terms, jurisdiction, and circumstances. Always verify with HR, MOHRE, or a qualified advisor.

Common questions about UAE gratuity

When must my employer pay my gratuity?

Under UAE Labour Law, employers must settle all end-of-service dues - including gratuity, unpaid wages, and accrued leave - within 14 days of the contract end date. If your employer delays, you can file a complaint with MOHRE.

Is gratuity calculated on basic salary or gross salary?

UAE gratuity is calculated on basic wage only. Housing, transport, and other allowances are excluded. Always confirm the basic wage figure on your payslip and contract.

Do I get gratuity if I resign?

Yes. Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees on new-style contracts generally receive full gratuity whether they resign or are terminated, provided they completed at least one year of service.

Is gratuity different for limited and unlimited contracts?

No. Current private-sector contracts are limited (fixed-term), and older unlimited contracts had to be converted. The same formula applies: 21 days of basic wage per year for the first 5 years, then 30 days per year, capped at 2 years' basic wage.

What if I worked less than one year?

If your continuous service is under 12 months, you are generally not entitled to gratuity. You are still entitled to other final settlement components such as unpaid wages and accrued leave.

Can my employer deduct money from my gratuity?

Only for specific debts you owe to the employer (such as loans or advances you signed for) or amounts allowed by law. Arbitrary deductions are not permitted. If you believe deductions are unjustified, raise it with MOHRE.

What if my employer refuses to pay my gratuity?

File a complaint with MOHRE through the Ministry's official channels. MOHRE will attempt to mediate; if no resolution is reached the case can be referred to the labour court. You typically have one year from the end of your contract to file a claim.

Does free-zone employment follow the same gratuity rules?

Most free zones follow the federal Labour Law, but DIFC and ADGM have their own employment frameworks. DIFC employees may be covered under the DEWS scheme instead of traditional gratuity. Check your specific zone's regulations.

Is this an end-of-service or EOSB calculator too?

Yes. Gratuity, end-of-service benefits, and EOSB all refer to the same payment under UAE Labour Law, so this gratuity calculator is also an end-of-service and EOSB calculator. The formula is identical.

Can I use it as a final settlement calculator?

It calculates the gratuity portion of your final settlement. Your full and final settlement also includes any unpaid salary and accrued leave encashment, which are added on top of the gratuity figure shown here.

Does the calculator work for domestic workers?

No. Domestic workers (maids, drivers, and similar roles) are covered by a separate law, Federal Decree-Law No. 9 of 2022, not Decree-Law No. 33 of 2021. This calculator is for private-sector employees under the main Labour Law — see our guide to gratuity for domestic workers in the UAE for how their end-of-service is worked out.