How it's calculated
You need at least one full year of continuous service. Gratuity is 21 days' basic wage for each of the first five years and 30 days' basic wage for each year after that. Parts of a year count in proportion, and the total cannot exceed two years' basic wage.
Daily wage = monthly basic salary ÷ 30. Service is measured in calendar years, months and days from your first to your last working day, after removing unpaid leave, and converted as years + months ÷ 12 + days ÷ 365. This matches the official Dubai Development Authority calculator, with one difference: we count your last working day and the DDA calculator does not, so its result can be one day's pay lower, and for exactly one year (for example 1 January to 31 December) it shows no gratuity.
Under the 2021 law, resigning does not reduce gratuity.
The main rules were read against Article 51 as published on the UAE government portal, but a qualified reviewer has not yet checked them. The methodology page lists what is still open, including how the two-year cap applies.
Worked examples
- 3 years (basic 9,000 AED, daily wage 300): 3 × 21 × 300 = 18,900 AED
- 7 years: (5 × 21 + 2 × 30) × 300 = 49,500 AED
- 30 years, cap applies: (105 + 25 × 30) × 300 = 256,500 → 216,000 AED
Gratuity on resignation in the UAE
Under the current law there is no reduction for resigning: after one year of service you receive the same gratuity whether you resign or your employer ends the contract.
Reductions for resignation came from the previous labour law. This calculator applies the current law only.
Basic salary only
Gratuity is calculated on your last basic salary. Housing, transport and other allowances are not included, so enter basic salary only.
What this calculator does not cover
DIFC and ADGM free zones (they have their own employment laws), government employees, domestic workers, employers enrolled in the alternative end-of-service savings scheme, and amounts other than gratuity such as unused leave or notice pay.
Working in Saudi Arabia instead? Use the Saudi end-of-service calculator.
Frequently asked questions
How is gratuity calculated in the UAE?
21 days' basic wage for each of the first five years and 30 days' basic wage for each year after, with a daily wage of basic salary ÷ 30, a one-year minimum and a cap of two years' basic wage.
Do I get gratuity if I resign?
Yes, if you have completed at least one year of service. Under the current law, resignation does not reduce the amount.
Is gratuity based on basic or total salary?
Basic salary only. Allowances are not included.
Is there a maximum gratuity?
Yes. Article 51 says the total cannot exceed two years' wage. This calculator applies that to basic wage. The DDA calculator shows no cap, so the methodology page lists this as an open point.
Does this calculator work for DIFC or ADGM?
No. These free zones have their own employment laws and schemes, so the calculator shows no amount for them.
Is anything I enter sent or saved?
No. The calculation runs in your browser and nothing you type leaves your device or appears in the address bar.