How is gratuity calculated in the UAE in 2026?

Under Federal Decree-Law 33/2021 (Article 51), gratuity is calculated on basic salary only: 21 days per year for the first 5 years, and 30 days per year thereafter. The total is capped at 2 years of basic salary. You must complete at least 1 year of service to be eligible.

Does resignation reduce gratuity in the UAE?

No. Under the new UAE labour law (Decree-Law 33/2021, effective February 2022), resignation no longer reduces gratuity. You receive the full calculated amount regardless of whether you resign or are terminated. The old deductions under the 1980 labour law have been eliminated.

When must my employer pay gratuity?

Your employer must pay your end-of-service gratuity within 14 days of contract termination. If they fail to do so, you can file a complaint with MOHRE (Ministry of Human Resources and Emiratisation) at no cost.

Employment Rights Hub

Free Tool

UAE Gratuity Calculator 2026

Calculate your end-of-service benefits based on Federal Decree-Law No. 33 of 2021, Article 51. Free, instant, no sign-up required.

Basic Monthly Salary (AED)

AED

Excludes housing, transport, and other allowances

Total Monthly Salary (AED) - optional

AED

Full package including allowances (for reference)

Employment Start Date

Employment End Date

Actual or projected last working day

Reason for Leaving

Employment Zone

Free zone employee (DIFC, ADGM, JAFZA, etc.)

How UAE Gratuity is Calculated

Under Federal Decree-Law No. 33 of 2021 (the new UAE labour law, effective February 2022), end-of-service gratuity is calculated based on your basic salary only (excluding housing, transport, and other allowances).

The Formula:

First 5 years: 21 days of basic salary per year
After 5 years: 30 days of basic salary per year
Cap: Total cannot exceed 2 years of basic salary

Important changes under the new law:

Resignation does NOT reduce gratuity — the old deductions have been eliminated
Employer must pay within 14 days of contract termination
Minimum 1 year of service required to be eligible