How UAE Gratuity is Calculated — Federal Decree-Law No. 33 of 2021
The UAE End of Service Gratuity is a statutory payment every private sector employee is entitled to after completing 1 year of continuous service. Under Federal Decree-Law No. 33 of 2021, the calculation is the same whether you resign or are terminated.
The Formula
Years 1–5: (Basic Salary ÷ 30) × 21 × Years of Service Years 5+: (Basic Salary ÷ 30) × 30 × Years of Service Maximum: 24 months basic salary (2-year cap)
Worked Example
Employee with AED 15,000 basic salary and 7 years service: Daily rate: AED 15,000 ÷ 30 = AED 500/day First 5 years: AED 500 × 21 × 5 = AED 52,500 Years 6–7: AED 500 × 30 × 2 = AED 30,000 Total: AED 82,500
Key rule: Gratuity is calculated on basic salary only — housing and transport allowances are excluded. DIFC/ADGM employees follow different schemes (DEWS/RPPP).
Federal Decree-Law No. 33 of 2021
UAE End of Service Gratuity Calculator 2025
Calculate the exact end of service gratuity entitlement under UAE Labour Law. Covers all contract types, service durations, and resignation vs. termination scenarios as per Federal Decree-Law No. 33 of 2021.
Basic salary only — exclude allowances
Total years with this employer
Total Gratuity Entitlement
AED 0
Calculation Breakdown
Need help managing gratuity for your team? Talk to RFS HR Consultancy.
UAE gratuity is calculated as 21 days of basic salary per year for the first 5 years, and 30 days per year beyond 5 years. Maximum is capped at 2 years basic salary. Under Federal Decree-Law No. 33 of 2021, this applies to all private sector employees.
Do I get gratuity if I resign in UAE?
Yes. Under Federal Decree-Law No. 33 of 2021 (effective February 2022), employees who resign after 1 year are entitled to full gratuity — the same as terminated employees. There is no longer any deduction for resignation.
What salary is used for UAE gratuity?
Gratuity is calculated on basic salary only. Housing allowance, transport, food allowance, and other benefits are excluded. The basic salary is the fixed amount in your employment contract.
What is the maximum gratuity in UAE?
The maximum end of service gratuity is capped at 24 months (2 years) of basic salary, regardless of years served. This cap is set under Federal Decree-Law No. 33 of 2021.
When must employers pay gratuity in UAE?
Employers must pay the final settlement including gratuity within 14 days of the last working day under UAE Labour Law. Late payment may result in MoHRE penalties.
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