About this tool
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021, Article 51), a full-time private-sector employee who completes at least one year of continuous service is entitled to an end-of-service gratuity calculated on the last basic wage (allowances such as housing and transport are excluded):
- 21 days' basic wage for each of the first five years of service;
- 30 days' basic wage for each additional year;
- parts of a year count proportionally, provided the employee has completed one year;
- the total may not exceed two years' wage;
- unpaid absence days are not counted as service.
This calculator uses a daily wage of basic monthly salary ÷ 30 and counts service in days ÷ 365. Under the current law, resignation no longer reduces gratuity as it did for unlimited contracts under the old law. Employers may deduct amounts the employee legally owes.
Good to know
- Private-sector mainland UAE rules only; free-zone rules usually follow the federal law but DIFC and ADGM differ.
- Does not apply to government employees or to employees in alternative end-of-service savings schemes.
- An estimate, not legal advice. Contract terms or disputes may change the amount.