Free · exact UAE Labour Law formula

UAE Gratuity Calculator — end of service, honestly

21 days of basic pay per year for the first five years, 30 after — not your full package. See what you're really owed today.

Your numbers

Gratuity owed today
AED 31,500
after 5 years
Your basic salary
AED 9,000
60% of package — the gratuity base
Watch out

If gratuity were paid on your full package it would be AED 52,500 — but it's paid on basic only, so you're building AED 21,000 less than most people assume. A low basic share quietly shrinks your end-of-service money.

Watch out

AED 31,500 sounds substantial — but it's about 2.1 months of your current package. Gratuity is a cushion, not a retirement plan.

Basis: Federal Decree-Law No. 33 of 2021: 21 days' basic pay per year for the first 5 years, 30 days' per year after, minimum 1 year of service, capped at 2 years' total pay. Full gratuity applies on resignation. Payment is due within 14 days of end of service.

Want the full picture — what you keep monthly and the gratuity you're building? Run Salary Reality →

Common questions

How is end-of-service gratuity calculated in the UAE?

21 days of basic salary per year for the first five years of service, and 30 days per year after that — on basic salary only, not your full package. It's capped at two years' total pay, and you need at least one year of service to qualify. (Federal Decree-Law 33 of 2021.)

Do I get full gratuity if I resign?

Yes. Under the current UAE Labour Law (in force since February 2022), private-sector employees receive full gratuity on resignation — the old rules that reduced gratuity for resigning no longer apply.

Is gratuity paid on basic or gross salary?

Basic salary only. Allowances for housing, transport and the rest don't count — which is why a package structured with a low basic share builds far less gratuity than people expect.

When must gratuity be paid?

Within 14 days of the end of service, under the UAE Labour Law. If it isn't, MOHRE is the place to raise a complaint.

That's one decision. See the whole picture.Your Reality Score reads all your numbers together — and shows the one fix that moves it most.Get your Reality Score →Ask Mizan

Mizanek — honest money guidance for the UAE.

Mizanek is an educational tool, not financial advice. Calculations use UAE-specific rules and typical figures you can adjust — they are illustrative, not a quote or recommendation. Always confirm with your bank and a licensed advisor before acting. Regulatory basis drawn from the Central Bank of the UAE (CBUAE), Ministry of Finance (MOF), and Securities & Commodities Authority (SCA).

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