UAE gratuity at a glance
Article 51 of Federal Decree-Law No. 33 of 2021 sets one scale for every foreign full-time worker in the private sector…
Article 51 of Federal Decree-Law No. 33 of 2021 sets one scale for every foreign full-time worker in the private sector, and it is calculated on the last basic wage only. The example column assumes a basic salary of AED 10,000, so a day of wage is AED 333.33.
| Completed service | Gratuity earned | Example at AED 10,000 basic |
|---|---|---|
| Under 1 year | None | AED 0 |
| Years 1 to 5 | 21 days of basic wage per year | AED 7,000 per year |
| Each year after year 5 | 30 days of basic wage per year | AED 10,000 per year |
| Overall cap | 2 years' wage | AED 240,000 |
So 3 years of service earns 21 x 3 = 63 days of wage (AED 21,000), and 8 years earns (21 x 5) + (30 x 3) = 195 days (AED 65,000 at AED 10,000 basic). The cap is reached only after about 25 and a half years on this scale.
What this calculator does not cover
This page calculates the onshore private-sector statutory gratuity for a full-time foreign worker…
This page calculates the onshore private-sector statutory gratuity for a full-time foreign worker. Several groups follow different rules, and we do not calculate them here:
- Free zones. DIFC employees are covered by DIFC employment law and the DIFC Employee Workplace Savings (DEWS) scheme, and ADGM and other free zones have their own regulations. Check your free-zone authority.
- UAE national workers. Nationals are covered by the pension and social security legislation (Article 51(1)), not by this scale.
- Piece-rate workers. Article 51(5) uses an average daily wage for workers paid by the piece, which needs payroll records.
- Alternative schemes. Article 51(8) lets the Cabinet approve alternative end of service systems. If your employer has joined one, your benefit follows that scheme.
- Other types of work. Article 52 deals with end of service gratuity for workers engaged in other types of work.
The employer must pay wages and all other entitlements, including gratuity, within 14 days of the end of the contract (Article 53).
Official sources
3 official sources
Figures on this page follow these official texts. Rules were last checked in September 2026.
- UAE Legislation portal, Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (Articles 51, 53, 67): uaelegislation.gov.ae/en/legislations/1541
- UAE Government portal, end of service benefits for workers in the private sector: u.ae, end of service benefits
- Ministry of Human Resources and Emiratisation (MOHRE): mohre.gov.ae
FAQ
How is end of service gratuity calculated in the UAE?
Under Article 51 of Federal Decree-Law No. 33 of 2021, a full-time foreign private-sector worker who has completed at least one year of continuous service receives the wage of 21 days for each of the first five years of service and the wage of 30 days for each year beyond five. The wage used is the last basic wage, and a day of wage is basic salary divided by 30. For example, 8 years at AED 12,000 basic is (21 x 5 + 30 x 3) = 195 days x AED 400 = AED 78,000.
Who is eligible for gratuity in the UAE and when?
Article 51(2) gives gratuity to a foreign full-time worker who has completed one or more years of continuous service. Under one year there is no statutory gratuity. UAE national workers are covered instead by the pension and social security legislation (Article 51(1)), so this calculator does not apply to them.
Is there a maximum on UAE gratuity?
Yes. Article 51(6) says the total end of service gratuity for a foreign worker must not exceed two years' wage. This calculator uses 24 times the last monthly basic wage as that cap, and shows whenever the cap has reduced the result. On the standard scale the cap only bites after about 25 and a half years of service.
Are allowances included in the gratuity calculation?
No. Article 51(2) and 51(5) calculate gratuity on the basic wage, and specifically on the last basic wage the worker received. Housing, transport and other allowances are left out unless your contract states a more favourable basis. Enter only your basic salary, not your total package.
Do I get gratuity for part of a year?
Yes, once you have completed one year. Article 51(3) pays a bonus for parts of a year in proportion to the time worked, so 3 years and 6 months earns gratuity on 3.5 years. Article 67 treats a year as 365 days and a month as 30 days, which is how this calculator converts the extra days into a fraction of a year.
Does resigning reduce my gratuity under the current law?
Article 51 does not reduce gratuity because of how employment ends, and it makes no distinction between resignation, termination by the employer or the end of a contract. The earlier Federal Law No. 8 of 1980, which scaled gratuity down for some resignations, was replaced by Decree-Law No. 33 of 2021 (see Article 73, Repeals). Your contract can give more, and the employer may deduct amounts due by law or by a court judgment (Article 51(7)). Always confirm with MOHRE or your HR team.
Do unpaid absence days count towards my service?
No. Article 51(4) says days of absence from work without pay are not included in the calculation of the duration of service. Enter your total unpaid days in the calculator and they are taken off your counted service. Paid annual leave, sick leave on pay and public holidays still count.
Does this calculator work for DIFC, ADGM and other free zones?
No. Free zones can have their own employment and end of service rules. DIFC, for example, runs the DIFC Employee Workplace Savings (DEWS) scheme, and ADGM has its own employment regulations. This page calculates only the onshore private-sector gratuity under Decree-Law No. 33 of 2021, and does not calculate free-zone schemes. Check your free-zone authority or employer for the rules that apply to you.