UAE 2026 · MOHRE rules
UAE Gratuity Calculator
Fact-checked against Federal Decree-Law No. 33 of 2021 and MOHRE public guidance · formulas computed, not estimated · last verified July 2026
Estimate your end-of-service benefit under UAE Labour Law — Dubai, Abu Dhabi and all emirates, limited or unlimited contracts.
How it is worked out
⬇ Download the Excel version (free)
How UAE gratuity is calculated (MOHRE formula)
Under Federal Decree-Law No. 33 of 2021, a private-sector employee who completes at least one year of continuous service earns end-of-service gratuity based on their last basic salary. The MOHRE formula is: daily wage (basic salary ÷ 30) × 21 days for each of the first five years, then × 30 days for each year after five. Partial years are paid pro-rata, and the total is capped at two years' basic salary.
Gratuity is calculated on basic salary only — housing, transport and other allowances are excluded. Under the current law, resignation and termination receive the same calculation once you have completed one year of service.
Limited vs unlimited contracts
Since February 2022, all UAE employment contracts are fixed-term (limited). Under the current law there is no difference in the gratuity formula between limited and unlimited contracts — both use the same 21-day and 30-day rule, and resignation no longer reduces your entitlement. Older unlimited contracts signed before 2022 followed different resignation rules, but the reformed law now treats everyone equally.
Dubai, Abu Dhabi and the other emirates
The same federal MOHRE rules apply across mainland Dubai, Abu Dhabi, Sharjah and all seven emirates, so this calculator works for a gratuity calculation in Dubai or Abu Dhabi alike. The main exceptions are certain financial free zones: DIFC in Dubai uses the DEWS savings scheme, and ADGM in Abu Dhabi offers a savings alternative. If you work in one of those zones, check its specific rules.
Examples
- 3 years, AED 10,000 basic: daily wage AED 333.33 × 21 × 3 = about AED 21,000.
- 5 years, AED 10,000 basic: 21 × 5 = 105 days × AED 333.33 = about AED 35,000.
- 7 years, AED 15,000 basic: 5 years (105 days) + 2 years (60 days) = 165 days × AED 500 = about AED 82,500.
Gratuity year by year (AED 10,000 basic salary)
The same formula, computed for one to ten years of service so you can see how entitlement grows — note the jump in yearly rate after year five:
| Service | Eligible days | Gratuity |
|---|---|---|
| 1 year | 21 days | AED 7,000 |
| 2 years | 42 days | AED 14,000 |
| 3 years | 63 days | AED 21,000 |
| 4 years | 84 days | AED 28,000 |
| 5 years | 105 days | AED 35,000 |
| 6 years | 135 days | AED 45,000 |
| 7 years | 165 days | AED 55,000 |
| 8 years | 195 days | AED 65,000 |
| 9 years | 225 days | AED 75,000 |
| 10 years | 255 days | AED 85,000 |
Scale linearly for your own basic salary: at AED 15,000 basic, multiply these figures by 1.5.
Three real-world scenarios
Sara — 3 years, AED 12,000 basic (marketing executive, Dubai). Daily wage AED 400. Entitlement: 21 × 3 = 63 days → 63 × 400 = AED 25,200. Resigning makes no difference under the current law.
Rajesh — 7 years, AED 8,000 basic (site supervisor, Abu Dhabi). Daily wage AED 266.67. First five years: 105 days; years 6–7: 60 days → 165 × 266.67 = AED 44,000. The post-five-year rate is where long service starts to pay.
Fatima — 12 years, AED 20,000 basic (finance manager). Daily wage AED 666.67. Days: 105 + (7 × 30) = 315 → AED 210,000. The 24-month cap (AED 480,000) is not reached, so she receives the full formula amount.
Eligibility checklist
- ✅ Completed at least one year of continuous service (unpaid leave days do not count toward service).
- ✅ Private-sector employee under a MOHRE-registered contract (mainland, any emirate).
- ✅ Applies whether you resign or are terminated — the current law treats both the same.
- ⛶ DIFC and ADGM free-zone employees follow their savings schemes (DEWS or equivalent) instead.
- ❌ Gratuity can be forfeited only in narrow legal-misconduct dismissals defined by law.
Disclaimer
This calculator provides an educational estimate under Federal Decree-Law No. 33 of 2021 and its amendments as commonly applied. It is not legal or financial advice, and individual contracts, free-zone rules, or ministerial decisions may change the outcome. For a binding figure, consult MOHRE (mohre.gov.ae), your HR department, or a licensed UAE labour lawyer.
Questions
How do I calculate gratuity in UAE for 5 years?
For exactly 5 years you get 21 days of basic salary per year: 21 × 5 = 105 days. Multiply by your daily wage (basic salary ÷ 30). On AED 10,000 basic that is 105 × AED 333.33 = about AED 35,000.
How is gratuity calculated for an unlimited contract?
The same as any contract under the current law: 21 days per year for the first 5 years, 30 days per year after, based on basic salary, with no reduction for resignation once you pass one year.
Is this the MOHRE gratuity calculator?
This tool applies the MOHRE formula from Federal Decree-Law 33 of 2021. It is an independent estimate for planning; for an official figure, confirm with MOHRE or your employer.
Do I get gratuity if I resign?
Yes. Resignation and termination are treated the same, provided you completed at least one year of continuous service.
Is gratuity based on basic or total salary?
Basic salary only. Housing, transport and other allowances are excluded.
Is there a gratuity calculator in Excel format?
Yes — use the free Excel download above. Enter your basic salary and service length in the yellow cells and it calculates your gratuity automatically.
Does unpaid leave affect my gratuity?
Days of unpaid leave are excluded from the service period, which slightly reduces the calculation; paid annual and sick leave count normally.
When must gratuity be paid after leaving?
Under the law, all end-of-service entitlements must be paid within 14 days of the contract end date.
Is gratuity taxed in the UAE?
The UAE has no personal income tax, so gratuity is paid tax-free. If you are tax-resident elsewhere, home-country rules may apply.
Can my employer replace gratuity with a savings plan?
Mainland employers may enrol workers in the voluntary alternative savings scheme; in DIFC, the DEWS plan replaced gratuity. Your contract or HR confirms which applies.