End-of-Service Gratuity Calculator

Gratuity under UAE labour law: 21 days per year for the first five years, 30 days after, capped at two years’ wage.

How this works

Applies to private-sector employees on the UAE mainland under Federal Decree-Law No. 33 of 2021.
No gratuity before one year of continuous service. From one year: 21 days’ basic wage for each of the first five years, and 30 days for each year after that. Part years count proportionally.
A day’s wage = monthly basic salary ÷ 30. Days of unpaid absence are not counted as service.
The total cannot exceed two years’ wage. Since 2022, resignation no longer reduces gratuity. DIFC and ADGM run their own schemes, and UAE nationals in pension schemes are treated differently.

Estimates and checklists for general guidance only — not legal or tax advice on your situation.

Is gratuity calculated on basic or total salary?

On the last basic wage — allowances such as housing and transport are not included.

When must it be paid?

Within 14 days of the end of employment, together with any other dues.

Estimate corporate tax at 0% / 9%, check Small Business Relief and the free-zone de minimis test.

Add or remove 5% VAT, and check whether you must — or may — register.

Mainland, free zone, DIFC/ADGM — or a combination? Six questions point you to the right starting structure.

A short description is enough to start. We reply to every enquiry personally, usually within one business day.