Home / End of Service Calculator
Your end-of-service benefit on basic salary, with the 21-day and 30-day bands shown separately and the statutory cap applied.
Gratuity is calculated on basic salary only — not gross. Check your contract for the basic figure.
Under Federal Decree-Law No. 33 of 2021, end-of-service gratuity is built from two bands, both paid on basic salary:
| Length of service | Entitlement per year |
|---|---|
| Less than 1 year | No gratuity |
| 1 to 5 years | 21 days of basic salary per year |
| Each year beyond 5 | 30 days of basic salary per year |
| Overall maximum | 2 years' total wages |
The daily wage is your monthly basic salary divided by 30. So one year in the first band is basic ÷ 30 × 21, and one year in the second band is simply one month of basic pay.
Take a basic salary of AED 6,000 and 6 years 4 months of service:
The cap is two years' wages — here 2 × 12 × 6,000 = AED 144,000 — so it does not bite. It only becomes relevant after roughly 24 years of service.
Once you pass one year of service, additional months are paid pro rata. There is no rounding up to the next whole year and no requirement to complete a further full year to be paid for the months you worked.
End-of-service gratuity is one component of your final settlement. The rest is calculated separately:
Divide your monthly basic salary by 30 to get a daily wage. Multiply that by 21 for each of your first five years, and by 30 for each year after five. Add the two together. Service under one year earns no gratuity, and the total is capped at two years' wages.
Basic salary only. Housing, transport, phone and all other allowances are excluded, which is why the gratuity figure is usually much smaller than employees expect from a gross salary.
No. Federal Decree-Law 33/2021, in force since February 2022, removed the old reductions for resignation. Anyone with more than one year of continuous service receives the full calculation whether they resign or are terminated.
Yes. Periods of unpaid leave do not count as service, so they are deducted from the total length of service used in the calculation. Paid annual leave counts normally.
Within 14 days of the contract end date. If your employer misses that deadline you can file a complaint with MOHRE.
Yes, total gratuity cannot exceed two years' worth of wages. On a typical salary that ceiling is only reached after roughly 24 years of service.