Does it matter if I resign or am terminated?

No. Under the current UAE Labour Law, resignation and termination receive the same gratuity entitlement, provided you have completed at least one year of service.

Updated for UAE Labour Law 2026

UAE Gratuity Calculator

Q: How is gratuity calculated in the UAE in 2026?

Under Federal Decree-Law No. 33 of 2021, employees receive 21 days' basic salary per year for the first 5 years of service and 30 days' basic salary per year for each year after 5 years. Gratuity is based on basic salary only and is capped at two years' basic salary.

A straightforward estimate of your end-of-service gratuity under Federal Decree-Law No. 33 of 2021.

100% Free

No sign-up or registration required

Updated for 2026

Based on Federal Decree-Law No. 33 of 2021

Basic salary only

Housing & transport allowances excluded

UAE Labour Law 2026 · Federal Decree-Law No. 33 of 2021

Gratuity Calculator

Estimate your end-of-service gratuity in under a minute

Select Contract Type *

Under the 2021 law both contract types follow the same gratuity formula.

Employment Location (Optional)

Circumstances *

ResignationTermination

Resigning or being terminated makes no difference to your gratuity under the current law (minimum 1 year of service required).

Gratuity is calculated on your basic salary only. Housing, transport and other allowances are excluded.

Basic Salary (in AED) *

AED

For how long have you worked in the company? *

Years

Months

This is an estimate based on Federal Decree-Law No. 33 of 2021. Free zones (e.g. DIFC) may have different schemes. Confirm your final entitlement with your employer or MOHRE.

UAE Gratuity Formula 2026

How your end-of-service gratuity is calculated under Federal Decree-Law No. 33 of 2021.

21 days

First 5 years

21 days of basic salary per year

30 days

After 5 years

30 days of basic salary per year

24 months

Maximum cap

2 years' (24 months') basic salary

Daily wage = monthly basic salary ÷ 30. The same formula applies to limited and unlimited contracts under Federal Decree-Law No. 33 of 2021.

Are you eligible?

Find out if you qualify for gratuity payment and how the rules apply to your contract type.

View eligibility guidance

How to use this tool?

Gratuity is the sum of money paid by an employer to an employee for the services rendered within the company or firm. With this tool, you can find the amount by simply entering your basic salary and the number of years of service.

This is one of the easiest ways to calculate your gratuity. You can also use this tool to estimate how much gratuity you can get when you retire.

How is gratuity calculated in the UAE in 2026?

End-of-service gratuity in the UAE is governed by Federal Decree-Law No. 33 of 2021 (UAE Labour Law). Under the current law, the calculation is simple and based on your basic salary and total years of service:

21 days' basic salary for each of the first 5 years of service
30 days' basic salary for each year beyond 5 years
Daily wage is calculated as monthly basic salary ÷ 30
Total gratuity is capped at 2 years' (24 months') basic salary
Gratuity is calculated on basic salary only - housing, transport and other allowances are excluded

Limited and Unlimited Contracts

Since February 2022, all new employment contracts in the UAE are fixed-term (limited). Both limited and unlimited contracts follow the same gratuity formula. Whether you resign or are terminated makes no difference to your entitlement, provided you have completed at least one year of service.

Gratuity Calculation Examples

Here are some examples of how gratuity is calculated under the 2026 rules:

3 years of service	7 years of service
Basic salary: Dh15,000	Basic salary: Dh15,000
Daily wage = 15,000 ÷ 30 = Dh500	Daily wage = 15,000 ÷ 30 = Dh500
First 5 years: 21 days × 3 = 63 days	First 5 years: 21 days × 5 = 105 days
	Beyond 5 years: 30 days × 2 = 60 days
Gratuity = 500 × 63 = Dh31,500	Gratuity = 500 × 165 = Dh82,500

The gratuity above is approximate. For a legally binding figure, confirm with your employer or check with MOHRE. Free zones such as DIFC may operate their own employment schemes.