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UAE end-of-service gratuity calculator 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

Enter your last salary and how long you have worked to see the gratuity you are owed in the UAE, whether you resign or the employer ends the contract.

Short answer

Article 51 of Federal Decree-Law No. 33 of 2021 says a full-time foreign worker who has completed one year of continuous service is entitled to 21 days' pay for each of the first 5 years and 30 days' pay for each year after that, based on the last basic pay, with part years counted pro rata. The total gratuity cannot exceed two years' pay. Example: 5 years of service on a basic salary of 15,000 UAE dirhams (21,000 with allowances) gives 52,500 UAE dirhams when the contract ends or the employer ends it.

Your service

UAE dirham
UAE dirham
Some laws use the total salary, or cap the gratuity with it.

Worked examples: basic salary 15,000 AED

Length of serviceIf you resignIf the contract ends
1 year10,50010,500
3 years31,50031,500
5 years52,50052,500
10 years127,500127,500

For an expat with a total salary of 21,000 AED (basic plus allowances). Amounts in AED.

How it is calculated

The 5-year example above, step by step:

  1. First 5 years: 5 × 21 days of basic salary = 52,500 dirhams
  2. After 5 years: 0 × 30 days = 0 dirhams
  • Article 51 of Federal Decree-Law No. 33 of 2021: 21 days' pay for each of the first 5 years and 30 days for each year after that, based on the last basic wage, with the total capped at two years' pay. Parts of a year count pro rata once a full year is completed.
  • The current law does not reduce the gratuity on resignation, so the amount is the same whether you resign or the employer ends the contract.
  • We applied the cap as 24 months of basic wage. The employer may deduct from the gratuity any amount owed to it by law or by a court ruling.

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Gratuity questions about the UAE

How much end-of-service gratuity will I get in the UAE?

Article 51 of Federal Decree-Law No. 33 of 2021 says a full-time foreign worker who has completed one year of continuous service is entitled to 21 days' pay for each of the first 5 years and 30 days' pay for each year after that, based on the last basic pay, with part years counted pro rata. The total gratuity cannot exceed two years' pay. Example: 5 years of service on a basic salary of 15,000 UAE dirhams (21,000 with allowances) gives 52,500 UAE dirhams when the contract ends or the employer ends it.

How do I calculate end-of-service gratuity in the UAE?

21 days' basic pay for each of the first 5 years and 30 days for each year after that, provided you have completed a year, capped at two years' pay. Basic pay of 10,000 dirhams and 6 years gives 45,000 dirhams.

Is the UAE gratuity reduced if I resign?

No. The current Labour Law (Decree-Law No. 33 of 2021) does not reduce the gratuity when you resign, so you get the same amount once you have completed a year of service.

Is the UAE gratuity based on basic or gross salary?

On the last basic pay only, under Article 51. Allowances such as housing and transport are not included.

Do UAE nationals get an end-of-service gratuity from the company?

No. Article 51 refers nationals to the pension and social security laws, so they receive a pension or a lump sum from the GPSSA or the Abu Dhabi fund.

Sources

  1. Ministry of Human Resources and Emiratisation (MOHRE): Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments (Article 51) Official source · checked 2 October 2026

Based on each country's labour law, as listed on our sources page. Special cases (fixed-term contracts, dismissal for misconduct, domestic workers) can differ; check with the labour ministry in your country.

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