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UAE gratuity calculator (end of service)

Work out your end-of-service gratuity under the UAE Labour Law (Federal Decree-Law 33 of 2021): 21 days' basic pay for each of your first five years, 30 days for each year after, part years included and capped at two years' wage. Saudi Arabia's end-of-service award is included too.

1Country and wage

Only the basic salary in your contract — housing, transport and other allowances are not used.

Optional. Basic plus allowances. Only used for the two-year cap; leave empty to use the basic salary.

2Length of service

Optional. Months on top of the full years (0–11).

Optional. Days on top of the months.

Optional. Unpaid days of absence are not counted as service.

Your results

Your results appear here

Type your measurements in the empty boxes. Still needed:

  • Last basic salary per month (AED)
  • Full years of service
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  • PDF & CSV

How do I calculate my gratuity in the UAE?

  1. 1Choose the UAE or Saudi Arabia.
  2. 2Enter your last monthly basic salary (UAE) or wage (Saudi Arabia).
  3. 3Enter your years, months and days of service, and any unpaid leave.
  4. 4Read your gratuity and how it adds up year by year.

UAE gratuity formula under the 2021 Labour Law

  1. 01UAE: daily wage = monthly basic ÷ 30
  2. 02UAE: gratuity = daily wage × (21 × years up to 5 + 30 × years after 5); nothing under 1 year
  3. 03UAE: no more than 2 years' wage (24 months)
  4. 04Saudi: award = monthly wage × (½ × years up to 5 + 1 × years after 5)
  5. 05Saudi resignation: under 2 years 0 · 2–5 years ⅓ · over 5 to under 10 years ⅔ · 10+ years all

Article 51 of the UAE Labour Law (Federal Decree-Law 33 of 2021, in force since February 2022) gives a full-time foreign worker with at least one year of continuous service 21 days of basic wage for each of the first five years and 30 days for each year after. Part years count pro rata, unpaid absence is left out, and the total can't exceed two years' wage.

The old UAE law cut gratuity by a third or two thirds when someone resigned early from an unlimited contract. Since 2022 every contract is fixed-term and the 2021 law has no such cut, so resigning no longer lowers your gratuity.

In Saudi Arabia, Article 84 of the Labor Law gives half a month's wage for each of the first five years and a month's wage for each later year. If you resign, Article 85 pays a third, two thirds or the full award depending on your years of service.

UAE gratuity calculation example

With a basic salary of 10,000 a month and 7 years of service in the UAE, the daily wage is 333.33 and you have earned 165 days of pay.

Your end-of-service gratuity is 55,000.

Good to know

  • Only your basic salary counts in the UAE — check the basic figure in your contract, not your total pay.
  • Unpaid leave is taken off your service, so it lowers your gratuity.
  • Your employer must pay your gratuity within 14 days of the job ending; MOHRE handles complaints.
  • In Saudi Arabia, staying past 10 years protects your full award even if you resign.

UAE gratuity — common questions

How is gratuity calculated in the UAE?

Take your last basic salary, divide by 30 for the daily wage, then multiply by 21 days for each of your first five years and 30 days for each year after. Part years count pro rata once you have done one full year, and the total can't be more than two years' wage.

Do I get gratuity if I resign in the UAE?

Yes. Under the 2021 Labour Law, you get the full gratuity after at least one year of service whether you resign or are let go. The old law's cuts for resigning no longer apply.

How much gratuity for 5 years in the UAE?

21 days × 5 years = 105 days of basic pay. On a basic salary of AED 10,000 that is 105 × 333.33 = AED 35,000.

Do I get gratuity for less than one year?

Not in the UAE — you need at least one year of continuous service. In Saudi Arabia the award is pro rata when the employer ends the contract, but nothing is due if you resign with less than two years.

Is gratuity calculated on basic salary or total salary?

In the UAE, on your last basic salary only. In Saudi Arabia the award uses your wage, which normally includes housing and other fixed allowances.

Sources

Formulas last reviewed: September 30, 2026 ·How we check our formulas

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