UAE End-of-Service Gratuity Calculator

Gratuity is calculated on basic salary only, per Article 51 of Federal Decree-Law No. 33 of 2021. Allowances — housing, transport, telephone, utilities — are excluded. If your employment contract states a single all-inclusive figure, MOHRE may use that as the basis for calculation; otherwise the basic-salary line on your contract is what applies.

Yes. Under FDL 33/2021, a resigning employee receives the same end-of-service gratuity as a terminated employee, provided the contract was completed. The old federal law had a sliding-scale reduction for resignations under unlimited contracts; that scale is no longer in effect. However, if you end a fixed-term contract early, Article 43 allows the employer to deduct a salary penalty (capped at 45 days) — that is separate from gratuity.

Total end-of-service gratuity cannot exceed 2 years of basic salary (24 months × basic monthly salary), per Article 51, Clause 4. This cap typically only kicks in for very long service — roughly 25+ years on a flat salary — so most employees never hit it.

Most free zones follow the federal labour law for gratuity calculation. ADGM and DIFC are exceptions — they have their own employment regulations with different gratuity rules. For mainland and the majority of free zones (DMCC, JAFZA, RAKEZ, Dubai South, etc.), this calculator gives an accurate estimate.

Periods of unpaid leave and abscondment are typically excluded from the years-of-service calculation, which can reduce your gratuity. This calculator assumes continuous paid service. If your record has gaps, subtract those days from your total service period and recalculate.

Service is calculated on a daily pro-rata basis. If you served 5 years and 6 months, your gratuity is (5 × 21) + (0.5 × 30) days of basic salary — i.e., the first 5 years use the 21-day rate and the additional 6 months use the 30-day rate. This calculator applies that pro-rata logic automatically.