UAE End-of-Service Gratuity Calculator
Know your UAE gratuity under Article 51 of Federal Decree-Law No. 33 of 2021, in seconds.
In the UAE the gratuity is calculated on the last basic salary only, excluding allowances.
Article 51 — full gratuity
🔒 Worked out in your browser — nothing is sent to a server
Your end-of-service gratuity
43,397.26 AED
Based on a 8,000.00 AED basic salary and 7 years of service
Breakdown
| Period | Years | Amount |
|---|---|---|
| First five years21 days' wage per year | 5 | 27,616.44 |
| After the fifth year30 days' wage per year | 2 | 15,780.82 |
How it's calculated
Under Article 51 of Federal Decree-Law No. 33 of 2021 on the regulation of employment relations, a full-time foreign worker who has completed one year or more of continuous service is owed an end-of-service gratuity calculated on the last basic wage: 21 days' wage for each of the first five years and 30 days' wage for each year after that, with the total capped at two years' wage.
Only the basic wage counts; housing, transport and other allowances are excluded. This calculator works out the daily wage by dividing the annual basic wage by 365 days (basic × 12 ÷ 365), as the Ministry of Human Resources and Emiratisation calculator does, whereas many websites divide the monthly wage by 30 and show a slightly higher figure.
Under the 2021 law the way the contract ended does not change the amount: resignation, termination by the employer and expiry of the contract all give the same gratuity once the first year is complete. Fractions of a year after the first year are paid pro rata, and days of absence without pay are not counted as service.
- Daily wage: basic salary × 12 ÷ 365
- First five years: 21 days × daily wage × number of years
- After the fifth year: 30 days × daily wage × number of years
- Minimum one year of continuous service, cap of two years' wage, and unpaid absence days excluded (Article 51)
Worked example
An employee whose last basic salary is 10,000 AED is terminated by the employer after 7 years of continuous service.
- Daily wage: 10,000 × 12 ÷ 365 = 328.77 AED (the calculator keeps the unrounded value)
- First five years: 5 × 21 × 328.77 = 34,520.55 AED
- Next two years: 2 × 30 × 328.77 = 19,726.03 AED
- Total gratuity: 34,520.55 + 19,726.03 = 54,246.58 AED
The same amount would be due had the employee resigned, because the 2021 law no longer reduces the gratuity for resignation. Dividing the salary by 30 instead of 365 would show 55,000 AED, which is the difference you see between websites.
FAQ
Do allowances count towards the UAE gratuity?
No. Article 51 bases the gratuity on the last basic wage only, so housing, transport and other allowances are left out, unlike Saudi Arabia, where the actual wage including fixed allowances is used.
What if I resign? Is the gratuity reduced?
No. Decree-Law 33/2021 removed the resignation reduction that Article 137 of the old Law 8/1980 imposed, so the full gratuity is calculated under Article 51 once you have completed one year of continuous service, provided you serve your notice period under Article 43.
How is the daily wage calculated: divide by 30 or by 365?
This calculator divides the annual basic wage by 365 days (basic × 12 ÷ 365), as the Ministry of Human Resources and Emiratisation calculator does, so a 10,000 AED salary gives a daily wage of 328.77 AED. Many websites divide the monthly salary by 30, which gives 333.33 AED and a result about 1.4% higher.
Am I owed a gratuity if I have not completed a year?
No. Article 51 requires at least one year of continuous service. Once that year is complete, fractions of a year are paid pro rata, and days of absence without pay are not counted as service.
Do I lose the gratuity if I am dismissed under Article 44?
The 2021 law does not tie forfeiture of the gratuity to disciplinary dismissal the way the old law did, so the gratuity remains due under Article 51 for the period served. Because these cases vary in practice, check your situation with the Ministry of Human Resources and Emiratisation.
When must the employer pay the gratuity?
Under Article 53 the employer must pay the worker's wages and all other entitlements, including the end-of-service gratuity, within 14 days of the contract end date.
Related tools
Sources
✓ Reviewed September 2026- Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations — UAE Legislation portal
- Ministry of Human Resources and Emiratisation (MOHRE) — official website
Statutory articles this calculator applies
- UAE Federal Decree-Law No. 33 of 2021, Article 51 — end-of-service benefits
- End-of-service calculator — Ministry of Human Resources and Emiratisation
UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (in force 2022-02-02) and Cabinet Resolution No. 1 of 2022 (Executive Regulations)