UAE Gratuity Calculator Widget
Work out the end-of-service gratuity a private-sector employee in the UAE is owed under Federal Decree-Law No. 33 of 2021: 21 days of basic wage for each of the first five years, 30 days for each year after, pro rata for part years, at a daily rate of the monthly basic divided by 30, capped at two years' wage.
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How it works
Article 51 of Federal Decree-Law No. 33 of 2021 entitles a full-time foreign worker who has completed at least one year of continuous service to a gratuity on the last basic wage: 21 days' wage for each of the first five years and 30 days' wage for each year beyond five, pro rata for parts of a year, with days of unpaid absence left out of the service and the total capped at two years' wage - and wage in the Decree-Law means the basic wage plus allowances, so the cap is 24 times the full monthly wage. Article 67 of the same Decree-Law deems a month to be 30 days and a calendar year 365 days, so the daily basic wage of a monthly-paid employee is the monthly basic divided by 30, and service in days converts to years on a 365-day year. The widget counts the days from the start date to the last working day, subtracts unpaid absence, and multiplies the gratuity days by the monthly basic over 30 in one step, rounding only the final dirham figure. There is no reduction for resignation under the current law. It applies to private-sector employment governed by Federal Decree-Law No. 33 of 2021. It does not apply to employees of the DIFC or ADGM financial free zones (their own employment laws set end-of-service rules), domestic workers (a separate decree-law), federal and local government employees, or - for service after enrolment - workers their employer has enrolled in the approved alternative end-of-service savings scheme (Cabinet Resolution 96 of 2023). Ordinary free zones are covered.
Calculation method
- Service years = (last working day - start date - unpaid absence days) / 365 (Art. 67)
- Gratuity days = 21 x min(years, 5) + 30 x max(0, years - 5); none below 1 year (Art. 51)
- Gratuity = monthly basic x gratuity days / 30 (Art. 67: a month is 30 days), rounded once to the fils
- Cap: two years' wage = 24 x full monthly wage incl. allowances (Art. 51(6); Art. 1 definition of Wage)
Worked examples
Seven years
Inputs: Basic AED 10,000; 7 years of service
Result: AED 55,000
105 days x 333.33 = 35,000 plus 60 days x 333.33 = 20,000; computed as 10,000 x 165 / 30.
Three and a half years
Inputs: Basic AED 10,000; 3.5 years
Result: AED 24,500
73.5 days x 10,000 / 30.
Long service
Inputs: Basic AED 10,000; full wage AED 12,000; 30 years
Result: AED 285,000 (under the cap of AED 288,000)
855 days x 10,000 / 30 = 285,000; cap 24 x 12,000 = 288,000.
An estimate under the Decree-Law, not legal advice. MOHRE or the courts decide disputed entitlements.
Limitations
- Private-sector employment under Federal Decree-Law No. 33 of 2021 only - see the scope above.
- Part-time contracts (pro-rated by hours under Cabinet Resolution 1/2022) are not modelled.
- UAE nationals are generally covered by the pension system; the widget does not check eligibility beyond the dates entered.
Where publishers use it
- An HR consultancy's end-of-service guide for private-sector employers
- A recruiter's FAQ for employees weighing a job change after four or five years
- An Arabic labour-rights site explaining the 21-day and 30-day bands
- A payroll provider's help centre answering resignation and termination questions
- A Jebel Ali warehouse worker checking dues after six years
- An Abu Dhabi hospital HR desk confirming basic-pay gratuity
Questions
How is gratuity calculated in the UAE private sector?
On the last basic wage: 21 days for each of the first five years and 30 days for each year after, pro rata for part years, under Article 51 of Federal Decree-Law No. 33 of 2021. A day's basic wage is the monthly basic divided by 30, because Article 67 deems a month to be 30 days.
What is the gratuity on AED 10,000 basic after 7 years?
AED 55,000: the daily basic wage is 10,000 / 30 = 333.33, the first five years give 21 x 5 = 105 days (AED 35,000) and the next two give 30 x 2 = 60 days (AED 20,000).
Is gratuity reduced if I resign?
No. The current Decree-Law contains no reduction for resignation, unlike the repealed 1980 labour law, so the same formula applies whether the employee resigns or is dismissed, subject to the other conditions.
Does it apply in the DIFC, ADGM or to domestic workers?
No. DIFC and ADGM employees fall under those free zones' own employment laws, domestic workers under a separate decree-law, and government employees under public-sector laws. Workers enrolled in an approved savings scheme instead of gratuity are also outside this calculation.
Is there a maximum gratuity?
Yes. The total may not exceed two years' wage, and the Decree-Law defines wage as the basic plus allowances, so the cap is 24 times the full monthly wage. Because gratuity accrues on the basic wage, the cap is only reached after very long service; the widget asks for the full wage only when it could matter.
Rules and official sources
Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for United Arab Emirates; when a rule changes, the widget changes with it.
| Rule | Official source | In force from | Last verified | Next review |
|---|---|---|---|---|
| End-of-service gratuity rate Full-time foreign worker with at least 1 year of continuous service: 21 days' basic wage per year for the first 5 years, 30 days per year after (Art. 51(2)); pro rata for part years (51(3)); unpaid absence excluded (51(4)); last basic wage (51(5)). Cap (51(6), Arabic: "أجر سنتين"): two years' WAGE - Art. 1 defines Wage as basic plus cash allowances and in-kind benefits, separately from Basic Wage, so the cap is 24 x the full monthly wage, not the basic. Read on the official Arabic text 2026-10-07. |
Federal Decree-Law No. 33 of 2021 (official text, Arabic prevails) UAE Legislation portal (uaelegislation.gov.ae) - Art. 51(2)-(6); Art. 1 definitions of Wage and Basic Wage |
2 Feb 2022 | 7 Oct 2026 | 5 Apr 2027 |
| Month deemed 30 days, year 365 days Art. 67: for implementing the Decree-Law a calendar year is deemed 365 days and a month 30 days. A day's wage for a monthly-paid worker is therefore the monthly wage / 30: the basic wage for gratuity (Art. 51) and unused leave on exit (CR 1/2022 Art. 19(2)), the full wage for leave taken and notice pay. Adopted for A2Z calculators by owner decision on 2026-10-07 after review of Art. 67 and Art. 51; applies only to employment governed by the Decree-Law (rule ae.labour.scope). |
Federal Decree-Law No. 33 of 2021 (official text) UAE Legislation portal (uaelegislation.gov.ae) - Art. 67 (calculation of periods and dates), applied with Art. 51 (end-of-service benefit) |
2 Feb 2022 | 7 Oct 2026 | 5 Apr 2027 |
| Which entitlements use the basic wage Basic wage excludes allowances and in-kind benefits. Gratuity, overtime and the payout for unused leave on exit are all calculated on the basic wage. |
Federal Decree-Law No. 33 of 2021 (official text) UAE Legislation portal (uaelegislation.gov.ae) - FDL 33/2021 Art. 1 (Basic Wage), Art. 19(2), Art. 51(5); leave payout on exit: Cabinet Resolution 1/2022 Art. 19(2) |
2 Feb 2022 | 6 Oct 2026 | 4 Apr 2027 |
| Who Federal Decree-Law No. 33 of 2021 covers Art. 3(2): not subject to the Decree-Law - employees of federal and local government agencies; members of the armed forces, police and security; domestic workers (governed by Federal Decree-Law No. 9 of 2022). UAE nationals receive end-of-service benefits under the pensions legislation (Art. 51(1); FDL 57/2023). DIFC and ADGM: Federal Law No. 8 of 2004 Art. 3(2) exempts financial free zones from federal civil and commercial laws; DIFC Employment Law No. 2 of 2019 (Art. 66: DEWS contributions for service from 1 Feb 2020) and ADGM Employment Regulations 2024 (s.61) set their own end-of-service rules. Alternative savings scheme: Cabinet Resolution No. 96 of 2023 Art. 5(3) - statutory gratuity stops accruing for enrolled workers; gratuity earned before enrolment remains due on the basic wage at enrolment. Ordinary (non-financial) free zones are private sector and covered. Sources: docs/embed/gcc/uae-gratuity-scope-2026-10.md. |
Federal Decree-Law No. 33 of 2021 (official text) UAE Legislation portal (uaelegislation.gov.ae) - Art. 3(2) exclusions; Art. 51(1) nationals; Art. 51(8) alternative schemes |
2 Feb 2022 | 7 Oct 2026 | 5 Apr 2027 |
Sources
- Federal Decree-Law No. 33 of 2021 (official text, Arabic prevails) - UAE Legislation portal (uaelegislation.gov.ae) . Art. 51(2)-(6); Art. 1 definitions of Wage and Basic Wage. Verified 2026-10-07.
- Federal Decree-Law No. 33 of 2021 (official text) - UAE Legislation portal (uaelegislation.gov.ae) . Art. 67 (calculation of periods and dates), applied with Art. 51 (end-of-service benefit). Verified 2026-10-07.
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