UAE Gratuity Calculator 2026
Estimate federal private-sector end-of-service pay from your exact service dates and last monthly basic salary. See the 21-day and 30-day bands, unpaid-leave adjustment, part-time ratio, legal cap and deductions separately.
Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources
| Service year | Service to date | Rate | First-five band | Later band | Accrued gross gratuity |
|---|---|---|---|---|---|
| 1 | 1 year | 21 days/year | AED 7,000 | AED 0 | AED 7,000 |
| 2 | 2.00 years | 21 days/year | AED 14,000 | AED 0 | AED 14,000 |
| 3 | 3.00 years | 21 days/year | AED 21,000 | AED 0 | AED 21,000 |
| 4 | 4.00 years | 21 days/year | AED 28,000 | AED 0 | AED 28,000 |
| 5 | 5.00 years | 21 days/year | AED 35,000 | AED 0 | AED 35,000 |
| 6 | 6.00 years | 30 days/year | AED 35,000 | AED 10,000 | AED 45,000 |
| 7 | 7.00 years | 30 days/year | AED 35,000 | AED 20,000 | AED 55,000 |
| 8 | 7.01 years | 30 days/year | AED 35,000 | AED 20,054.79 | AED 55,054.79 |
Follow the formula with worked examples
Understand basic salary, part-years, unpaid leave, part-time work, the cap, deductions and outdated resignation tables.
Check the UAE Government guidance
Verify the 21-day and 30-day bands, basic-wage basis, part-time ratio, cap and Savings Scheme boundary.
Who this UAE gratuity calculator is for
This tool models the federal UAE Labour Law calculation for a foreign worker in the private sector under Federal Decree-Law No. 33 of 2021, as amended. The worker must complete at least one adjusted year of continuous service before gratuity is shown.
It is not the right calculator for an Emirati worker covered by a pension or social-security scheme, a domestic worker, government employment, or employment governed by the separate DIFC or ADGM frameworks. Those boundaries matter because the rules are not interchangeable.
Use the last basic salary, not total monthly pay
Federal Article 51 bases gratuity on the last basic wage. Housing, transport, utilities, furniture and other allowances are excluded even when they form a large part of the monthly package.
For a monthly-paid worker, the estimate converts the last monthly basic salary to a daily basic wage by dividing by 30. Entering total compensation will overstate the result.
How the 21-day and 30-day bands work
The first five years accrue at 21 days of basic wage for each service year. Service after the first five years accrues at 30 days of basic wage for each additional year. A fraction of a year is prorated once the one-year eligibility condition is met.
The calculator shows both bands separately and builds a year-by-year table. It also applies the overall ceiling: federal gratuity cannot exceed two years of the relevant basic wage.
Unpaid absence and part-time work
Days of absence without pay are excluded from the service term. Article 67 defines a year as 365 days and a month as 30 days, so this calculator counts the inclusive Gregorian service days, removes entered unpaid absence and divides the result by 365.
For part-time and job-sharing arrangements, Cabinet Resolution No. 1 of 2022 applies the ratio of annual contracted hours to annual full-time contract hours. The tool asks for both numbers and applies that percentage to the full-time benefit.
Traditional gratuity versus the Savings Scheme
The voluntary alternative end-of-service Savings Scheme is not a second way to calculate the same balance. Once an employer enrols a worker, traditional gratuity accrual stops for the enrolled period and employer subscriptions plus investment returns are held in the selected fund.
Use the scheme statement for the enrolled-period value. This calculator can still help with a traditional entitlement accrued before enrolment if the end date is set to the confirmed cut-off date, but the employer or fund administrator should confirm the settlement.
Why payroll may differ by a day or a deduction
The law requires proportional treatment of part-years and Article 67 defines a statutory year as 365 days. GrowThenDraw treats the joining and final working dates as inclusive, then divides adjusted service days by 365. A payroll system that excludes one boundary date can differ by one day.
An employer may deduct only amounts payable under the law or a judgment and subject to the implementing rules. The deductions field is for comparing a documented figure, not deciding whether an employer's claim is lawful.
What to do with the estimate
Compare the inputs with the employment contract, final payslip, leave record and written end-of-service statement. The law says wages and other end-of-contract entitlements should be paid within 14 days, but gratuity is only one part of a final settlement.
For a disagreement, unusual work pattern, free-zone question or Savings Scheme issue, confirm the governing framework with MOHRE or a qualified UAE employment professional. This is an independent educational estimate, not legal advice or a government calculation.
Frequently asked questions
How is UAE gratuity calculated in 2026?
For an eligible full-time foreign private-sector worker under the federal law, the first five years receive 21 days of last basic wage per year and later service receives 30 days per year. Part-years are prorated, unpaid absence is excluded, and the total is capped at two years of wage.
Is UAE gratuity based on basic salary or total salary?
It is based on the last basic wage for monthly, weekly or daily paid workers. Housing, transport and other allowances are not included.
Do I receive gratuity if I worked less than one year?
No gratuity is shown when the adjusted service term is below one year. Temporary employment lasting less than one year is also excluded under the implementing regulation.
Does resignation reduce gratuity under the current federal law?
The current Article 51 formula does not contain the old limited-contract or resignation reduction bands found on many outdated calculators. Contract facts and the governing jurisdiction can still matter, so confirm an unusual case with MOHRE.
Are unpaid-leave days included in service?
No. Federal Article 51 says unpaid days of absence are excluded from the service term. Enter them separately rather than shortening the basic-salary figure.
How is part-time UAE gratuity calculated?
The annual hours in the part-time or job-sharing contract are divided by the annual hours in the full-time contract. That ratio is applied to the full-time gratuity value.
Does this calculator cover DIFC or ADGM employees?
No. DIFC and ADGM have separate employment frameworks. This page models the federal private-sector rules only.
Does it calculate the alternative Savings Scheme balance?
No. The enrolled-period entitlement is employer subscriptions plus the fund's actual investment returns, so it must come from the scheme statement. Traditional accrual generally stops when enrolment begins.
When should final UAE employment entitlements be paid?
Federal Article 53 requires the employer to pay wages and other end-of-contract entitlements within 14 days after the contract ends.
Federal rules verified July 2026. Primary sources:
- UAE Government: private-sector end-of-service benefits and Savings Scheme
- MOHRE: Federal Decree-Law No. 33 of 2021 and current amendments, Articles 51 and 53
- MOHRE: Cabinet Resolution No. 1 of 2022, Articles 29 and 30
Calculation convention: joining and final working dates are inclusive. Article 67 defines a statutory Gregorian year as 365 days and a month as 30 days; adjusted service years equal service days less entered unpaid absence, divided by 365. The result is an educational estimate, not legal advice, a MOHRE decision or a final settlement statement.