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🇦🇪 UAE Labour Law Federal Decree-Law No. 33 of 2021 Free Tool

UAE Gratuity Calculator

Calculate your end-of-service gratuity instantly. Supports limited & unlimited contracts. No signup required.

100% Accurate Updated 2026 UAE & Dubai
Enter Your Details
AED
Basic salary only — exclude housing & transport allowances

* Based on UAE Federal Decree-Law No. 33 of 2021

Your result will appear here

Fill in your salary and service dates on the left, then click Calculate Gratuity

Estimated GratuityAED ——
Service Period— yrs
Daily RateAED ——

What is Gratuity in UAE?

Gratuity represents an end-of-service benefit that a working employee receives after completing a minimum tenure of one year. It is governed by Federal Decree-Law No. 33 of 2021.

  • Based on employee's last basic salary only
  • Does not include allowances (housing, transport, overtime)
  • Eligibility begins after one year of continuous service
  • Applies to both limited and unlimited contracts
  • Cannot exceed 2 years of basic salary (cap)

Factors That Determine Gratuity

1
Contract Type

Limited (fixed-term) vs unlimited (open-ended) — different rules may apply on resignation

2
Last Basic Salary

Only base wage is used — bonuses and allowances are excluded from calculation

3
Duration of Employment

Minimum 1 year required. Each year of service increases entitlement proportionally

How Is UAE Gratuity Calculated?

The calculation uses your basic daily salary (Basic Monthly Salary ÷ 30) multiplied by applicable days per year of service.

Less than 1 Year
No gratuity entitlement

Minimum 1 year of continuous service required

1 to 5 Years
(Basic ÷ 30) × 21 × Years

21 days basic salary per year of service

More than 5 Years
Phase 1 + (Basic ÷ 30) × 30 × Extra Yrs

30 days/year beyond 5. Total capped at 2 years salary.

Worked Example
Basic Salary: AED 10,000 · 5 Years Service (Limited Contract)
Daily SalaryAED 10,000 ÷ 30 = AED 333.33
21 days × 5 yearsAED 333.33 × 21 × 5 = AED 35,000
Total GratuityAED 35,000

How to Use the Gratuity Calculator

1
Enter Basic Salary

Input your monthly basic salary excluding all allowances. If your package is AED 15,000 with AED 4,000 housing, enter AED 11,000 as basic salary.

2
Select Service Dates

Enter your first and last working day. Partial years are automatically calculated proportionally. If you've worked 5 years 6 months, the tool handles it.

3
Choose Contract Type

Select Limited (fixed-term) or Unlimited (open-ended) contract. Different rules apply for resignation before 5 years on unlimited contracts.

4
Click Calculate

Get a complete breakdown: daily salary, phase 1 (years 1–5 at 21 days), phase 2 (beyond 5 years at 30 days), and total with the 2-year cap check.

Frequently Asked Questions

How to calculate gratuity in Dubai?

If an employee has spent more than 1 year but less than 5 years, they are entitled to full gratuity based on 21 days payout per year. For service beyond 5 years, 30 days per year is applied for the additional period.

What is the new gratuity law in UAE?

Under Federal Decree-Law No. 33 of 2021, gratuity is calculated based on 21 days wage for each year of the first five years of service, and 30 days wage for every additional year beyond five years.

Is gratuity calculated on last basic salary in UAE?

Yes. End-of-service benefits or gratuity in UAE is calculated on the basis of the last salary drawn by the employee, excluding allowances and perks such as housing, transport, and overtime.

How to compute 5-year gratuity calculation UAE?

Multiply 21 days of salary for each of the first 5 years. If service exceeds 5 years, add 30 days per year for the additional years. The total cannot exceed 2 years of basic salary.

How can I check my gratuity online?

Use Zimyo's UAE Gratuity Calculator — enter your basic salary, start date, and end date to get an instant, accurate result per UAE Labour Law.

Do I get gratuity if I resign?

Yes. Under the 2022 UAE Labour Law, employees who resign are entitled to full gratuity regardless of years of service.

Is there a maximum cap on UAE gratuity?

Yes. The total gratuity amount cannot exceed the equivalent of 2 years of basic salary, regardless of how many years the employee has worked.

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