Gratuity calculator UAE: end of service benefit
Work out end of service gratuity for a private-sector employee from the real start and end dates and the last basic salary. It follows Article 51 of the UAE Labour Law and shows every step.
Article 51 in five lines
- Each of years 1 to 5
- 21 days' basic
- Each year after year 5
- 30 days' basic
- Minimum service
- 1 year
- Maximum gratuity
- 2 years' wage
- Payment due
- Within 14 days
Federal Decree-Law No. 33 of 2021, Articles 51 and 53
How it works
The calculator applies the rules in Article 51 in five steps, in this order, and shows each one under the result.
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Count the service
Days from the start date to the last working day, counting both. Unpaid leave and unpaid absence are taken off, because they do not count as service (Art. 51(4)). Probation counts, because continuous service runs from the day work began.
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Check the one-year rule
Gratuity is due only once one year of continuous service is complete (Art. 51(2)). Below that, the calculator shows the date the employee becomes eligible instead of a figure.
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Work out the daily basic wage
The last basic monthly salary divided by 30, because the law treats a month as 30 days (Art. 67). Housing, transport and other allowances are left out.
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Apply 21 and 30 days a year
21 days' wage for each of the first five years and 30 days for each year after that (Art. 51(2)). Part-years count pro rata (Art. 51(3)), with a year taken as 365 days.
-
Apply the cap and any deductions
The total cannot exceed two years' wage (Art. 51(6)), applied here as 24 times the basic salary. Amounts the employer may deduct under the law or a judgment come off last (Art. 51(7)).
Three worked examples
The figures below come from the calculator above, using the inputs described.
-
Three years, no unpaid leave
Started 1 March 2022, last working day 28 February 2025, last basic salary AED 10,000 a month.
- Service counted
- 1,096 days
- Daily basic wage (10,000 ÷ 30)
- AED 333.33
- Days of wage earned (21 × 1,096 ÷ 365)
- 63.06
Gratuity AED 21,019.181,096 days, not 1,095, because 2024 had a 29 February. Payable by 14 March 2025.
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Seven years with unpaid leave
Started 15 April 2018, last working day 14 April 2025, last basic salary AED 12,000, and 20 days of unpaid leave over the employment.
- Calendar days less 20 unpaid
- 2,537 days
- Years 1 to 5 (1,825 days at 21 days a year)
- AED 42,000.00
- After year 5 (712 days at 30 days a year)
- AED 23,408.22
Gratuity AED 65,408.22The job began before 2 February 2022, so the calculator also flags the transitional rule for older unlimited contracts (Art. 68(3)).
-
Eleven months: not yet eligible
Started 1 March 2025, last working day 31 January 2026, last basic salary AED 9,000.
- Service counted
- 337 days
- One-year rule
- 28 days short
- Eligible from
- 28 Feb 2026
Gratuity AED 0.00Wages and other entitlements are still due within 14 days of the end of the contract (Art. 53).
Frequently asked questions
Short answers about the gratuity calculator and the rules behind it.
Ask us on WhatsAppHow is gratuity calculated in the UAE?
For a full-time, non-UAE employee in the private sector, gratuity is 21 days of basic wage for each of the first five years of service and 30 days for each year after that, based on the last basic wage. Part-years count pro rata once one year is complete, and the total cannot exceed two years' wage (Federal Decree-Law No. 33 of 2021, Article 51).
Is gratuity based on basic salary or total salary?
Basic salary. The law's definition of basic wage leaves out allowances and benefits in kind, so housing, transport and other allowances do not count. Enter the basic figure from your contract.
Do I get gratuity if I resign?
Yes, once you have completed at least one year of continuous service. Article 51 of the current law does not reduce gratuity according to who ends the contract, and the resignation reductions of the old 1980 labour law do not appear in it. Your contract, or an employer savings scheme approved under Article 51(8), can still affect what you receive.
What if I worked for less than one year?
No gratuity is due until one year of continuous service is complete (Article 51(2)). The calculator shows the date you become eligible. Unpaid salary and other entitlements are still payable when the contract ends.
Does unpaid leave count towards service?
No. Days of unpaid absence are not counted as service (Article 51(4)). Paid annual leave and sick leave on pay still count, and so does probation, because continuous service runs from the day work began.
When must the employer pay gratuity?
Wages and all entitlements must be paid within 14 days of the date the contract ends (Article 53). A labour claim cannot be heard if it is filed more than one year after the right fell due (Article 54(9)), so raise any shortfall promptly.
Who is not covered by this calculator?
UAE nationals, whose end of service benefits come under the pensions and social security laws; other GCC nationals covered by their home country's social security; employees in DIFC and ADGM, which have their own employment laws; part-time, temporary, flexible and piecework staff; and government, armed forces, police and domestic workers. For these groups the calculator shows a message instead of a figure.
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About these results
This calculator gives an indicative figure only. It is not legal, tax or employment advice. It assumes a full-time, non-UAE employee in the private sector, outside DIFC and ADGM, and works from the last basic salary divided by 30. Your contract, an employer savings scheme, the transitional rule for older unlimited contracts, or a MOHRE or court decision can change the amount. It does not cover leave pay, notice pay or other final dues. The figures you type are not sent anywhere unless you send them to us.
Rules last checked against the primary sources on 7 October 2026.
Get a final settlement checked before it is signed
DirhamWise checks the gratuity, leave pay, notice and deductions in a final settlement, and runs monthly payroll and WPS files for employers. Send the figures on WhatsApp or through the form.
