UAE Gratuity Calculator

UPDATED

Estimate your end of service gratuity under Article 51 of Federal Decree-Law No. 33 of 2021. Enter your basic salary and your dates for an instant figure.

Article 51 formula
Basic salary only
Part-time share supported
Free, no sign-up
YOUR ESTIMATE
AED 0.00
Service counted: 0.00 years (0 days)
Daily basic wage (monthly basic ÷ 30) AED 0.00
First 5 years: 0.00 yrs × 21 days AED 0.00
After 5 years: 0.00 yrs × 30 days AED 0.00
Two-year wage cap (24 × monthly basic) AED 0.00
Equals months of basic pay 0.00 months
CALCULATOR
LIVE RESULT

End of service gratuity estimate

Free, instant, nothing is stored

Basic only. Housing, transport and other allowances are left out.
Article 51 does not count unpaid days of absence as service.
E.g., 50% if you work 20 hours/week instead of 40 hours/week.

An estimate from the formula in the law, not a legal ruling or an offer from your employer. Allowances, deductions and contract terms can change the final sum.

How to Use the UAE Gratuity Calculator & Understand End-of-Service Rights

When parting ways with an employer in the Emirates, calculating your final financial settlement is one of the most critical steps to secure your professional rights. Governed primarily by Article 51 of Federal Decree-Law No. 33 of 2021, end-of-service gratuity serves as a statutory lump-sum payment acknowledging an employee's loyal service years. Because company policies and contract classifications can sometimes add confusion, utilizing an independent UAE Gratuity Calculator ensures you receive every dirham you've legally earned.

Core Legal Framework Under Article 51

The unified labor legislation outlines explicit tier structures depending on your duration of continuous employment and contract type. Unlike legacy frameworks, the modern decree streamlines how partial years and full years are computed.

Critical Milestone: Under standard full-time employment terms, an employee must complete a minimum of one full year of continuous service to qualify for end-of-service gratuity benefits.

How the Accrual Formula Operates

Computation relies strictly on your last drawn monthly basic salary—housing, transport, and other allowances are legally excluded from this baseline. The standard accumulation tiers function as follows:

  • Under 1 Year: No gratuity accrues if service is terminated before completing 365 days.
  • 1 to 5 Years: Employees receive 21 days of basic wages for each year of the first five years of service, prorated precisely by exact calendar days.
  • Beyond 5 Years: Any service duration stretching past five years accumulates at a rate of 30 days of basic wages for each additional year.
  • Total Compensation Cap: Regardless of tenure length, total cumulative severance cannot exceed two years' (24 months) worth of total wages.

Handling Resignation Versus Termination Rules

Your reason for leaving also influences final payout calculations under limited and unlimited contract transitions of the past, though modern unified contracts evaluate service length uniformly. However, resignation provisions under specific contract clauses can alter proportional payouts if an employee departs abruptly without serving mandatory notice periods.

Got Questions?

Frequently Asked Questions

Are allowances included in my UAE gratuity calculation?

No. By law, gratuity is computed strictly using your monthly basic salary, leaving out housing, utility, and transport allowances.

What happens if I resign before completing one year?

Employees who resign or have their employment terminated with less than one year of continuous service are not legally entitled to end-of-service gratuity.

How is the daily wage derived for gratuity purposes?

Your monthly basic salary is divided by a fixed statutory divisor of 30 days to arrive at your daily basic wage rate.

Does part-time employment count toward gratuity?

Yes, part-time and alternative employment patterns are supported under the law, though payouts are adjusted proportionally based on working hours share.

Is there a maximum ceiling limit for gratuity payouts?

Yes, the total accumulated end-of-service severance package cannot exceed the equivalent of two years' (24 months) total wages.

Do unpaid days of absence affect my service duration?

Unplanned or authorized unpaid leaves of absence are subtracted from your total service days, as Article 51 counts only active working tenure.

Can an employer deduct losses from my gratuity?

Employers can only deduct financial losses if proven through formal investigations or court orders, and written consent or legal backing is mandatory.

When must my employer disburse my final settlement?

According to MOHRE guidelines, final settlements—including gratuity and pending dues—must typically be settled within 14 days of contract termination.

Does summary dismissal under Article 44 forfeit gratuity?

Yes, if an employee is terminated under specific disciplinary clauses outlined in Article 44 (such as gross misconduct), they forfeit their end-of-service benefits.

What recourse do I have if my employer delays my gratuity?

If final dues are withheld without legal justification, you can lodge an official labor dispute complaint directly through the MOHRE app or portal.