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UAE Gratuity Calculator

Calculate your end-of-service gratuity entitlement under UAE Federal Labour Law (Decree-Law No. 33 of 2021). Updated for 2026 - the old resignation deductions no longer apply.

Estimated Gratuity

AED 31,068

3.00 years × 21 days × AED 493/day

How Gratuity is Calculated

Gratuity is calculated on your basic salary only - housing allowance, transport allowance, and other benefits are excluded. The daily rate is your annual basic salary divided by 365.

Less than 1 yearService must be 1 full year minimum
No entitlement
1 - 5 yearsBased on basic salary daily rate
21 working days per year
Over 5 yearsApplied to years beyond 5 only; first 5 still at 21 days
30 working days per year
MaximumAny amount above this cap is forfeited
2 years' total basic salary

Key Rules to Know

Resignation deductions removed (2022)

Under the old Labour Law, employees who resigned received reduced gratuity (1/3 or 2/3 depending on years served). The 2022 law abolished this - you now receive full gratuity whether you resign or are terminated.

Paid within 14 days of leaving

Your employer is legally required to pay gratuity within 14 days of your last working day. If they fail to do so, you can file a complaint with MOHRE (the Ministry of Human Resources and Emiratisation).

MOHRE complaint is free and fast

If your employer disputes or underpays your gratuity, file via the MOHRE app or mohre.gov.ae. Most cases are resolved within 2-3 weeks. There is no cost to file.

Gratuity is separate from annual leave encashment

Any unused annual leave days must be paid out separately at your full daily salary rate (not basic-only). This is in addition to gratuity, not part of it.

When Gratuity Can Be Reduced

Termination for cause (Article 44)Gross misconduct, fraud, serious breach of contract
Gratuity may be forfeited
Unpaid loans to employerOnly legitimate debts owed to the employer
May be deducted
Abandonment of postOr 7 consecutive days without notice
Forfeited if absent 20+ days

These are the only lawful reasons. Salary disputes, performance issues, or probation completion are not grounds for withholding gratuity. If in doubt, contact MOHRE.

This calculator is for reference only. Gratuity is based on basic salary only - not total package. Always obtain a written calculation from your employer's HR department and verify with the Ministry of Human Resources (MOHRE) if in dispute.

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