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UAE 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.

Last reviewed: · General information, not legal advice

The short answer

For mainland UAE private-sector employees, end-of-service gratuity under Article 51 of Federal Decree-Law No. 33 of 2021 is 21 days' basic wage for each of the first five years of service and 30 days' basic wage for each year after that, paid pro rata for part years. You need at least one year of continuous service, the total cannot exceed two years' wage, and it is the same whether you resign or are terminated. Example: AED 6,000 basic and 6 years 4 months of service gives about AED 29,000.

Your details

Gratuity is calculated on basic salary only — not gross. Check your contract for the basic figure.

Your estimated end-of-service gratuity

Total gratuityAED 0

How UAE end of service is calculated

Under Federal Decree-Law No. 33 of 2021, end-of-service gratuity is built from two bands, both paid on basic salary:

Length of serviceEntitlement per year
Less than 1 yearNo gratuity
1 to 5 years21 days of basic salary per year
Each year beyond 530 days of basic salary per year
Overall maximum2 years' wage (Article 51)

The usual method, used here, takes the daily wage as monthly basic salary divided by 30 (the law counts a month as 30 days; it does not spell out a daily-wage formula for gratuity). 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.

A worked example

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. Because the cap equals 720 days of basic pay (105 days for the first five years plus 30 days for each later year), it is only reached after about 25.5 years of continuous service, whatever the salary.

Partial years count

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.

What is not in this figure

End-of-service gratuity is one component of your final settlement. The rest is calculated separately:

Calculate your full settlement instead →

Frequently asked questions

How do I calculate end of service in the UAE?

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.

Is end of service calculated on basic or gross salary?

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.

Do I lose gratuity if I resign?

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.

Does unpaid leave reduce my gratuity?

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.

When must my gratuity be paid?

Within 14 days of the contract end date. If your employer misses that deadline you can file a complaint with MOHRE.

Is there a maximum gratuity in the UAE?

Yes, total gratuity cannot exceed two years' wage (Article 51 of Federal Decree-Law 33/2021). Measured in basic pay, that ceiling is only reached after about 25.5 years of continuous service, whatever the salary.

⚠️ Estimate only — not legal advice. Figures follow mainland UAE Federal Decree-Law No. 33 of 2021 (Articles 51 and 53). The law caps gratuity at "two years' wage"; this calculator applies the cap as 24 months of basic salary, which is the common interpretation. DIFC, ADGM, domestic workers and some free zones follow different rules. For a binding figure contact MOHRE or a licensed UAE labour lawyer.

Source: Federal Decree-Law No. 33 of 2021 and its amendments (official MOHRE English translation, PDF). The Arabic text prevails.

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