UAE Gratuity Calculator
Free UAE end-of-service gratuity calculator: 21 days of basic wage per year (30 days after 5 years), capped at 2 years of pay, every step shown.
What does the UAE Gratuity Calculator do?
It computes the end-of-service gratuity UAE labour law owes you on leaving: 21 days of basic wage per year for the first 5 years of service, 30 days per year thereafter, capped at two years of total wages — with the daily wage derived from basic salary only.
- Inputs: monthly basic salary, years of service.
- Output: estimated gratuity total with the daily wage and tiers itemised.
- Method: the 2022 Labour Law formula (Federal Decree-Law 33), evaluated in your browser.
Quick answer
On an AED 10,000 basic salary after 4 years: daily wage = AED 328.77, gratuity = 21 days × 4 years ≈ AED 27,616. After 5 years the rate rises to 30 days of basic per year, and the total can never exceed 2 years of wages.
What This Calculator Really Does
The gratuity is the UAE version of severance — and the single most-misunderstood number in Gulf job offers. Under the 2022 Federal Decree-Law 33 the formula is the same for resignation and termination (unlike the old law): it builds ONLY on your basic salary — housing, transport and other allowances are excluded by law — and only service of a year or more counts.
The formula it applies
- Daily wage: monthly basic × 12 ÷ 365 (this is the legal conversion).
- First 5 years: 21 days of the daily wage per year of service.
- After 5 years: 30 days of the daily wage per year.
- Cap: total gratuity cannot exceed two years of total wages.
- Under 1 year: no gratuity at all.
Worked example with real numbers
Basic AED 10,000, 6 years of service: daily wage = AED 328.77. First 5 years: 21 × 5 × 328.77 = AED 34,521. Sixth year: 30 × 328.77 = AED 9,863. Total ≈ AED 44,384, well under the 2-year cap of AED 240,000.
Reading the result
The donut splits the two tiers. Unpaid leave reduces service time pro-rata; part-time service accrues by actual hours. The calculator shows the statutory amount — your final settlement also includes unused leave encashment, any notice-period pay, and end-of-service benefits your contract adds on top.
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Frequently Asked Questions
How is the UAE gratuity calculated?
Daily wage (basic × 12 ÷ 365) times 21 days per year for the first 5 years, then 30 days per year after — capped at 2 years of wages. Allowances are excluded; only basic salary counts.
What do I need to use the UAE Gratuity Calculator?
Your monthly basic salary (the line on your labour contract, not your total package) and your years of continuous service. The tiers and cap apply automatically.
What does the result from the UAE Gratuity Calculator show?
The estimated total gratuity, the daily wage it builds from, the split between the 21-day and 30-day tiers, and whether the 2-year cap applies.
Do I get gratuity if I resign in the UAE?
Yes — under the 2022 Labour Law the formula is identical for resignation and termination, as long as you have completed at least one year of continuous service.
Is the UAE Gratuity Calculator really free?
Yes — 100% free, no sign-up, everything runs in your browser and works offline.
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