UAE gratuity calculator for end-of-service benefits: What is this
leaver owed?
Enter a salary and a service period and see the end-of-service gratuity, worked out step by step under the labour law of each country.
Estimated end-of-service gratuity
5.00 years of serviceAED 35,000.00
How this was worked out
- Daily rate (monthly ÷ 30)
- AED 333.33
- First 5.00 years at 21 days each
- AED 35,000.00
DenwaysHR calculates this automatically for every leaver, and pays it through the same payroll run.
See how payroll handles itIndicative only. This calculator applies United Arab Emirates labour law to the figures you enter. Contracts, unpaid leave, outstanding dues and free-zone rules can all change the result. Confirm the final amount with your legal adviser before paying or accepting it.
Working on one country? Use the Saudi end-of-service calculator or the Qatar gratuity calculator.
How end-of-service gratuity is calculated in the UAE
Gratuity is the lump sum an employer owes when employment ends. In the UAE it is set by Federal Decree-Law No. 33 of 2021 and comes from two numbers: basic salary and length of service.
The UAE rules the calculator applies
- Entitlement begins after one continuous year of service
- It is calculated on basic salary. Housing, transport and other allowances are left out
- 21 calendar days of basic pay for each of the first five years
- 30 calendar days of basic pay for each year beyond five
- The total is capped at two years' wage
- Resigning no longer reduces the award, as it did under the previous law
Saudi Arabia works from the last wage including allowances: half a month for each of the first five years and a full month after, reduced when an employee resigns with under ten years of service. Qatar sets a minimum of three weeks of basic wage for each year, after one year of service. The calculator handles all three.
A worked example
Basic salary of AED 6,000 a month, seven years of service.
- Daily basic wage (6,000 ÷ 30)
- AED 200
- First five years (21 days × 5 × 200)
- AED 21,000
- Years six and seven (30 days × 2 × 200)
- AED 12,000
- Gratuity owed
- AED 33,000
Two years' wage here is AED 144,000, so the cap does not come into it.
How is gratuity calculated in the UAE?
Take the basic monthly salary and divide by 30 for a daily wage. The employee is owed 21 days of that wage for each of the first five years of service and 30 days for each year after, up to a ceiling of two years' wage. Nothing is owed until one continuous year has been completed.
Is gratuity calculated on basic salary or total salary?
On basic salary in the UAE. Allowances are excluded, which is why two people on the same total package can be owed different amounts depending on how the package is split. Saudi Arabia is different: the end-of-service award there uses the last wage, allowances included.
Do I get gratuity if I resign?
In the UAE, yes, once you have completed a year of service. Under Federal Decree-Law No. 33 of 2021 a resignation no longer reduces the award. In Saudi Arabia it still does: nothing under two years of service, one third from two years up to five, two thirds beyond five and under ten, and the full amount at ten years or more.
What is the maximum gratuity in the UAE?
The total cannot exceed two years' wage, however long the service.
Can I rely on the figure this calculator gives?
The calculator applies the statutory formula and shows every step, so you can check it. A contract may give more than the law requires, and the exact start and end dates decide the service period, so treat the result as a check and confirm a final settlement with your HR team or legal adviser.
Guides
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See how DenwaysHR handles HR, attendance and leave across the GCC, and payroll with the WPS file in the UAE.
