Free UAE labour-law tool

العربية

UAE gratuity calculator

Under Article 51 of the UAE Labour Law (Federal Decree-Law No. 33 of 2021), a private-sector employee with at least one year of continuous service is entitled to 21 days' basic wage for each of the first five years and 30 days' basic wage for each additional year. Fractions of a year are pro-rated, unpaid leave is excluded and the total cannot exceed two years' basic wage.

How it is calculated

1.
Daily wage

Basic monthly wage ÷ 30. Allowances (housing, transport) are not part of the basic wage.

2.
First five years

21 days' daily wage for each year, pro-rated for part-years.

3.
After five years

30 days' daily wage for each year beyond the fifth.

4.
Cap

The total may not exceed two years' basic wage (24 × monthly basic wage).

What this tool does not cover

  • DIFC employees are covered by the DIFC Employment Law and the DEWS savings scheme, not this formula.
  • ADGM has its own Employment Regulations; some free zones and government employers apply different rules.
  • Deductions the employer may lawfully make (Article 51) and amounts owed to the employer are not included.
  • This is an estimate for information only — not legal advice.

Frequently asked questions

Is gratuity calculated on the total salary or the basic salary?

On the basic wage only. Housing, transport and other allowances are excluded unless the contract says otherwise.

Do I get gratuity if I resign?

Yes. Under the 2021 law, gratuity is due on termination for any reason, including resignation, provided you have completed at least one year of continuous service.

When must the employer pay?

Within 14 days from the end of the employment relationship (Article 53).

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