Last Updated: October 2026
For an eligible full-time foreign private-sector worker under the standard UAE Article 51 rules, gratuity accrues at 21 days of basic wage for each of the first five years and 30 days for each additional year. At least one year of qualifying continuous service is required, unpaid absence is excluded, and eligible part-years are calculated proportionately.
Use the estimator below to check the salary-and-service calculation. It shows the formula amount before the statutory wage ceiling, lawful deductions, or other final-settlement items. It is not a Ministry of Human Resources and Emiratisation (MoHRE) calculation or a decision about your individual entitlement.
UAE gratuity calculator
Basic salary and qualifying-service estimate
Standard full-time foreign private-sector formula. Result is before the wage ceiling, lawful deductions, and other settlement items.
Values are calculated in your browser and are not sent by this calculator. Confirm the applicable law, scheme, service record, and final settlement with the relevant authority.
Enter your last monthly basic salary, not a salary package that includes housing or transport allowances. Enter the qualifying service in years after excluding unpaid absence. For example, a verified qualifying period of 7.5 years means seven and a half years for the formula.
The optional date helper counts the first and last entered dates, subtracts unpaid absence, and divides net days by 365. This is a disclosed approximation, including how leap days are treated. Compare its result with your employment record and adjust the qualifying years if your verified period differs.
Who should use this estimator?
This is a calculation aid for the standard full-time, monthly-paid foreign-worker gratuity described in the UAE Government’s private-sector benefits guidance. Check the governing law and scheme before applying it to your job.
- UAE nationals and workers covered by pension arrangements: their applicable pension/social-security rules need separate assessment.
- Government staff and domestic workers: do not use this private-sector formula as their entitlement calculation.
- DIFC, ADGM, or another distinct employment regime: confirm the rules or savings scheme that actually governs the employment.
- Part-time and other work models: the implementing rules have a proportionate method; this full-time result alone is insufficient.
- Alternative end-of-service savings arrangements: enrolled periods are not simply calculated as ordinary gratuity years.
- Legacy contract or disputed-service cases: obtain an individual assessment rather than applying an old resignation chart or assuming every historic period has identical treatment.
The government guidance distinguishes Emirati pension treatment, full-time foreign-worker benefits, part-time calculation, and the alternative Savings Scheme. Domestic-worker rights are governed separately, so confirm that regime through MoHRE rather than applying this private-sector calculator.
How the salary-and-service formula works
- Find the last basic wage. Check the contract and payroll record. Keep allowances separate.
- Confirm qualifying service. Use employment and leave records; subtract the unpaid absence that must be excluded. Ask HR to show its service-period calculation if it differs from yours.
- Calculate the daily basic-wage amount: monthly basic wage ÷ 30.
- Apply the two tiers: 21 days for each of the first five years, then 30 days for each later year.
- Check the ceiling and any lawful adjustments before treating the result as payable gratuity.
Formula amount = (monthly basic wage ÷ 30) × [(21 × qualifying years up to 5) + (30 × qualifying years after 5)]
The daily amount is not rounded before applying the tiers; the displayed currency result is rounded at the end. If you derive a fractional service period from dates, keep the calculation and leave records. The estimator accepts the qualifying years you enter rather than silently guessing how your employer has treated a date boundary.
Worked examples: AED 10,000 monthly basic salary
| Qualifying service | Calculation | Formula amount |
|---|---|---|
| Under 1 year | Minimum qualifying period not completed. | AED 0 under this standard formula. |
| 3 years | 10,000 ÷ 30 × 21 × 3 | AED 21,000 |
| 5 years | 10,000 ÷ 30 × 21 × 5 | AED 35,000 |
| 7.5 years | AED 35,000 for the first five years + AED 25,000 for the next 2.5. | AED 60,000 |
These are hypothetical salary/service examples, not individual case outcomes. The 30-day rate applies only to the portion after the fifth year; it does not retrospectively turn the first five years into 30-day years.
The two-year wage ceiling and lawful deductions
Federal Decree-Law No. 33 of 2021, Article 51, places a two-year-wage ceiling on the total gratuity and provides for deductions that are due by law or judgment, subject to the applicable conditions and procedures.
Do not assume “wage” and “basic wage” are interchangeable for every question. The accrual calculation uses basic wage, while the statutory ceiling is worded as two years’ wage. For a long-service case near the ceiling, have MoHRE or a qualified adviser confirm the applicable wage basis and ceiling calculation. The estimator flags a result at or above a 24-month basic-pay comparison point; that comparison is not a legal determination of the ceiling.
Ask for an itemized settlement showing the salary basis, qualifying period, tier calculation, ceiling if relevant, and each deduction. Do not assume that every amount an employer labels a debt can be deducted without the required legal basis and process.
Dismissal, notice entitlement, and gratuity are separate legal questions. The calculator does not decide whether dismissal was lawful or apply a blanket “Article 44 means no gratuity” rule.
Gratuity is only one part of a final settlement
Outstanding wages, unused leave, notice-related amounts, and other entitlements can be separate settlement components with their own rules and salary bases. Adding them to the gratuity formula indiscriminately can produce an incorrect total.
The UAE Government guidance says outstanding wages, other entitlements, and gratuity must be paid within 14 days of contract termination. If your settlement is missing or disputed, retain the contract, payroll and leave records, employer calculation, and relevant correspondence, then use MoHRE’s official channels for the appropriate enquiry or complaint route.
The alternative Savings Scheme is another important exception: the government explains that enrolled employees receive employer contributions and applicable investment returns for those periods, with pre-enrolment gratuity handled according to the law. Do not run all those years through the traditional formula without checking the enrolment record.
Frequently asked questions
Is gratuity based on basic or total salary?
The standard accrual uses the last basic wage, excluding allowances. The wage ceiling is a separate check; seek confirmation of its application if your service brings the result near it.
Do I qualify after exactly one year?
The standard Article 51 eligibility threshold is at least one year of qualifying continuous service. Confirm the service record and excluded unpaid absence rather than rounding a shorter period up.
Do I receive a proportionate amount for part of a year?
Eligible fractions are calculated proportionately once the one-year qualifying threshold has been completed. Enter the qualifying fractional years accurately in the tool.
Does resigning automatically reduce the amount to one-third?
This estimator does not apply an old blanket resignation-reduction table. Current Article 51 accrual is based on the qualifying period and basic wage. Historic contract arrangements or disputes need their own assessment.
Can I use this result for a domestic worker or a DIFC employee?
No. Check the specific employment law and scheme. This tool is scoped to the standard full-time foreign private-sector Article 51 calculation.
Is this the amount my employer must pay?
It is the formula component before the ceiling, lawful adjustments, and other settlement components. Compare it with an itemized employer calculation and confirm disputed legal points through the relevant authority.
Source check: 15 October 2026, DubaiHowTo Editorial Desk. References: the UAE Government’s private-sector benefits guidance and Federal Decree-Law No. 33 of 2021, particularly Articles 51–53. This independent estimator illustrates the stated calculation and does not replace an official assessment.
