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Gratuity Calculator UAE

End-of-service gratuity in the UAE is calculated at 21 days of basic wage for each of the first five years of service and 30 days for each additional year, under Article 51 of Federal Decree-Law No. 33 of 2021. You generally qualify after one year of continuous service. Enter your details in the gratuity calculator UAE below to estimate your entitlement.

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Enter your basic salary and years of service to see an estimate.

Estimate only, based on the standard formula under Federal Decree-Law No. 33 of 2021 (21 days' basic salary per year for the first five years, 30 days per year thereafter, capped at two years' basic salary; a minimum of one year of continuous service is required). Your actual entitlement may vary depending on contract terms and individual circumstances — this is not legal advice.

What Is a Gratuity Calculator in the UAE?

A UAE gratuity calculator 2026 estimates your end-of-service gratuity in the UAE using your basic wage and eligible service period. Under Article 51 of Federal Decree-Law No. 33 of 2021, eligible foreign full-time workers generally receive 21 days of basic wage for each of the first five years and 30 days for each additional year.

UAE Gratuity Calculation at a Glance

Key figure UAE gratuity rule
Qualifying period 1 year of continuous service
First 5 years 21 days of basic wage per year
After 5 years 30 days of basic wage per additional year
Calculation basis Basic wage
Unpaid absence Excluded from service period
Maximum gratuity 2 years' wage
Payment after end of service Within 14 days

What Salary Is Used to Calculate Gratuity?

Gratuity is calculated using your basic wage, not your gross or total salary package. This is one of the most common reasons gratuity calculations are disputed.

For example, if your AED 10,000 monthly salary consists of:

  • § AED 6,000 basic salary
  • § AED 3,000 housing allowance
  • § AED 1,000 transport allowance

The gratuity calculation uses the AED 6,000 basic wage, rather than the AED 10,000 gross salary.

At 21 days per year, that means AED 4,200 for each of the first five years, rather than AED 7,000 if the gross salary were incorrectly used.

Your employment contract and salary records should therefore be checked before relying on an employer's calculation.

Legal consultant reviewing a client's case file
We walk through your calculation and documents with you before any step is taken.

How Do You Calculate Gratuity in the UAE?

The basic calculation is:

Daily basic wage = Last basic wage ÷ 30

For the first five years:

Daily basic wage × 21 × years of service

For service beyond five years:

Daily basic wage × 30 × additional years of service

For example, with a basic wage of AED 6,000 and two years of eligible service:

AED 6,000 ÷ 30 × 21 × 2 = AED 8,400

A gratuity calculator applies these figures to the employment information you enter to provide an estimate.

Is There a Maximum Gratuity in the UAE?

Yes. Article 51(6) provides that end-of-service gratuity cannot exceed the equivalent of two years' wage. The cap is unlikely to affect shorter service periods because the standard calculation reaches two years' wage only after roughly 25.5 years of service.

DISPUTES WE HANDLE

Common Gratuity Disputes We Handle

The amount shown on a UAE gratuity calculator is only as accurate as the information used. Disputes often arise when the wrong basic wage is entered, the service period is calculated incorrectly, or the employer's final settlement does not match the employee's records. Almajd Justice reviews the figures and the underlying documents to identify where the calculation may differ from the applicable law.

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We check every figure against your employment records before we advise you.
01

Incorrect Basic Wage

Gratuity is calculated using the worker's basic wage, so using the gross salary or including allowances can produce a different figure. We can review your employment contract, salary records and final settlement to determine whether the correct basic wage was used.

02

Wrong Service Period

The length of eligible service directly affects the gratuity amount. Unpaid absence is excluded from the service period under Article 51(4) of Federal Decree-Law No. 33 of 2021. We can review your employment dates and relevant leave records when the service period is disputed.

03

Unpaid or Underpaid Gratuity

If your employer has not paid your end-of-service gratuity or the amount is lower than expected, the issue may require more than checking a calculator. We review the calculation against your employment records and explain whether there appears to be a shortfall.

04

Final Settlement Disputes

Gratuity is only one part of an employee's final settlement. If you believe the settlement does not reflect your outstanding employment entitlements, we can review the relevant figures and documents and explain the position under UAE Labour Law.

05

Employer Deductions

Certain amounts may be deducted from end-of-service entitlements where permitted by law or a court judgment. If a deduction has been made from your settlement and you are unsure whether it is lawful, we can review the basis for that deduction. Article 51(7) addresses deductions from gratuity.

06

Gratuity After Resignation or Termination

Resignation and termination can raise different questions about your final settlement, but the basic gratuity calculation for an eligible foreign full-time worker remains tied to the applicable service period and basic wage under Article 51. We can review the circumstances of your departure and the calculation provided by your employer.

Think Your Gratuity Is Wrong?

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HOW A CASE PROCEEDS

How the Gratuity Dispute Process Works

If your gratuity calculation does not match your employment records, the first step is to establish where the difference comes from. Almajd Justice follows a clear three-stage process:

01

Consultation

You explain your employment history, salary structure and the issue with your gratuity or final settlement. We review the key information and documents relevant to your matter.

02

Assessment

We compare the calculation with your employment records and the applicable UAE Labour Law. This helps identify issues such as an incorrect basic wage, service period, unpaid leave or an improper deduction.

03

Strategy & Filing

If further action is appropriate, we explain the available route and what filing or representation would involve. You can then decide whether to proceed.

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From first consultation to filing, we keep you informed at every stage.

Documents You Will Need

To review your gratuity position properly, bring the documents that establish your salary, service period and final settlement. These may include:

You do not need to have every document before your consultation. If something important is missing, we can identify what may be needed during the assessment.

Time Limits and Deadlines

Your gratuity is not only a calculation issue. There are also deadlines that can affect when and how you pursue an unpaid or disputed entitlement.

Under Article 53 of Federal Decree-Law No. 33 of 2021, the employer must pay the worker's wages and other entitlements within 14 days from the end of the contract, subject to the applicable rules.

If you dispute an employment entitlement, Article 54 provides the process for raising an individual labour dispute with the Ministry. Depending on the claim and circumstances, the Ministry may resolve the dispute or refer it to the competent court.

WHY ALMAJD JUSTICE

Why Choose Almajd Justice?

A gratuity calculation should leave you with a clear answer, not another set of legal questions. Almajd Justice keeps the process straightforward, so you understand the figures, the applicable law and your options before deciding what to do next.

Fixed-Fee Consultations

Know the cost of your consultation before you proceed. Our fixed-fee approach gives you a clear starting point for discussing your gratuity matter.

No Obligation to Proceed

A consultation does not commit you to further legal services. We explain your position first, so you can make an informed decision about what comes next.

Arabic and English

Discuss your matter in Arabic or English. Clear legal advice starts with being able to explain your situation and understand the response.

A Three-Stage Approach

We first understand your employment circumstances and review the relevant documents. We then assess your gratuity and legal position before explaining the available options in clear, practical terms.

FAQ

Frequently Asked Questions

Still unsure about your gratuity? Here are some of the questions employees commonly have about calculating and checking end-of-service payments in the UAE.

For an eligible foreign full-time worker, gratuity is calculated using the last basic wage. The rate is 21 days of basic wage for each of the first five years and 30 days for each additional year after that. A worker generally needs at least one year of continuous service to qualify.
For two years of eligible service, divide your monthly basic wage by 30, multiply the daily figure by 21, then multiply by two. For example, with a basic wage of AED 6,000: AED 6,000 ÷ 30 × 21 × 2 = AED 8,400.
If your basic wage is AED 6,000 and you have completed two years of eligible continuous service, the standard calculation gives AED 8,400. The calculation uses your basic wage rather than your gross salary, so allowances included in your overall package should not simply be added to the calculation.
An eligible foreign full-time worker generally does not receive end-of-service gratuity if their continuous service is less than one year. Article 51 of Federal Decree-Law No. 33 of 2021 sets the one-year qualifying period for this entitlement.
The first five years are calculated at 21 days of basic wage per year. Each additional year is calculated at 30 days. For example, seven years of eligible service means five years at the 21-day rate and two additional years at the 30-day rate.
Yes. Days of absence without pay are excluded when calculating the period of service used for end-of-service gratuity. If unpaid leave has been deducted from your service period, your leave records and employment dates should be checked to make sure the calculation has been applied correctly.
Resignation does not automatically mean that you lose your gratuity. For an eligible foreign full-time worker, the entitlement is generally based on the qualifying service period and last basic wage. The circumstances of your departure and the rest of your final settlement should also be reviewed.
Yes. Article 51(6) provides that total end-of-service gratuity cannot exceed the equivalent of two years' wage. Because the standard calculation reaches this limit only after a long period of service, the cap generally does not affect employees with shorter service periods.
Part-time and job-sharing workers are calculated on a pro-rata basis. Article 30 of Cabinet Resolution No. 1 of 2022 uses the worker's contracted annual hours compared with the annual hours of a full-time worker, applying that percentage to the full-time gratuity calculation. Temporary work or service of less than one year does not qualify under this provision.
The old limited-versus-unlimited contract distinction should not be used as the basis for calculating current private-sector gratuity. The current UAE Labour Law uses the applicable employment framework and the worker's qualifying service and basic wage. Older online calculators may still use the previous distinction, so their results should be treated carefully.
Domestic workers are governed by a separate legal framework from the private-sector workers covered by Article 51 of Federal Decree-Law No. 33 of 2021. Their end-of-service entitlements should therefore be assessed under the applicable domestic-worker legislation rather than automatically applying the standard private-sector formula.
If the amount paid appears incorrect, keep your employment contract, salary records, service dates, leave records and final settlement. Almajd Justice can review the calculation against your documents and the applicable UAE Labour Law to identify whether there is a potential shortfall and explain the available options.
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