UAE Gratuity Calculator with Unpaid Leave and Partial Years
Calculate your UAE end-of-service gratuity when your service includes incomplete months or unpaid leave, under Article 51 of Federal Decree-Law No. 33 of 2021.
In the UAE the gratuity is calculated on the last basic salary only, excluding allowances.
Article 51 โ full gratuity
Days of absence without pay are not counted in the service period (Article 51).
๐ Worked out in your browser โ 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
Article 51 of Federal Decree-Law No. 33 of 2021 entitles the worker to a gratuity for fractions of a year in proportion to the time worked, provided one year of continuous service has been completed. A worker with 3 years and 6 months of service receives a gratuity for 3.5 years, while a worker who has not completed the first year receives nothing.
Paragraph 3 of the same article provides that days of absence from work without pay are not counted in the service period, so unpaid leave is deducted from the period before the formula is applied, whereas paid annual leave, public holidays and the notice period remain part of the service.
The gratuity is calculated on the last basic wage: 21 days' wage for each of the first five years and 30 days for each year after that, with a daily wage equal to basic ร 12 รท 365, the method used by the Ministry of Human Resources and Emiratisation calculator. Enter the number of unpaid leave days in the dedicated field and the calculator deducts them from the service period automatically.
- Fractions of a year after the first year: months รท 12 and days รท 365
- Unpaid leave days are deducted from the service period before the calculation (Article 51(3))
- Daily wage: basic salary ร 12 รท 365
- No gratuity before one year of continuous service, and the total cannot exceed two years' wage
Worked example
An employee whose last basic salary is 10,000 AED is terminated by the employer after 7 years, during which he took a total of 60 days of unpaid leave.
- Deduct the unpaid leave: 7 years โ 60 days (two months) = 6 years and 10 months
- First five years: 5 ร 21 ร 328.77 = 34,520.55 AED (daily wage 10,000 ร 12 รท 365)
- Remaining 1 year and 10 months: (22 รท 12) ร 30 = 55 days ร 328.77 = 18,082.19 AED
- Total gratuity: 34,520.55 + 18,082.19 = 52,602.74 AED
Without the unpaid leave the gratuity for a full 7 years would be 54,246.58 AED. Had the service been only 3 years and 6 months with no unpaid absence, the employee would receive 3.5 ร 21 ร 328.77 = 24,164.38 AED.
FAQ
Is unpaid leave deducted from the end-of-service gratuity?
Yes. Article 51(3) provides that days of absence from work without pay are not counted in the service period, so those days are subtracted from the period before the gratuity is calculated. Paid annual leave and public holidays remain part of the service period.
How are incomplete months and days calculated?
Once the first year is complete, fractions of a year are paid in proportion to the time worked: months are divided by 12 and days by 365, and the result is multiplied by 21 or 30 days' wage depending on which year it falls in. Six months therefore count as 0.5 of a year.
I served only 11 months. Am I owed a partial gratuity?
No. Article 51 requires one year of continuous service before any gratuity is due, and fractions only count once that year is complete. A worker with 1 year and 1 month receives a gratuity for 13 months; a worker with 11 months receives nothing.
Is sick leave deducted from the service period?
The paid days count as continuous service and are not deducted. The unpaid part of sick leave falls within absence without pay under the wording of Article 51, so if that is your situation, check it with the Ministry of Human Resources and Emiratisation.
Does the notice period count as service?
Yes. The contract remains in force during the notice period under Article 43 and the worker receives the full wage, so the notice period counts as service up to the last working day.
Why does this calculator differ from other websites?
The difference is usually the daily wage: we use basic ร 12 รท 365 as the Ministry calculator does, while many websites divide the salary by 30. Differences can also come from ignoring unpaid leave or rounding months to whole years.
Related tools
Sources
โ Reviewed September 2026- Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations โ UAE Legislation portal
- Ministry of Human Resources and Emiratisation (MOHRE) โ official website
Statutory articles this calculator applies
- UAE Federal Decree-Law No. 33 of 2021, Article 51 โ end-of-service benefits
- End-of-service calculator โ 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)