Free Tool
UAE Gratuity Calculator 2026
Find out exactly how much end-of-service gratuity you are owed in the UAE. Enter your basic salary and service dates for an instant result with full year-by-year breakdown and automatic 2-year cap check.
Based on UAE Federal Decree-Law No. 33 of 2021, Article 51UAE End-of-Service Gratuity Calculation
Generated by GulfNabd UAE Gratuity Calculator • gulfnabd.com/uae-gratuity-calculator/ • Based on UAE Federal Decree-Law No. 33 of 2021, Article 51
Your Estimated Gratuity
Based on UAE Federal Decree-Law No. 33 of 2021
Year-by-Year Breakdown
| Year | Period | Days Rate | Amount (AED) | Running Total |
|---|
How UAE Gratuity Is Calculated in 2026
UAE end-of-service gratuity is governed by Article 51 of Federal Decree-Law No. 33 of 2021. The formula uses a two-tier structure based on years of service. The daily wage is calculated as monthly basic salary divided by 30, which is the standard used by MOHRE and UAE payroll practice. The total is capped at two years of basic salary regardless of how long you have worked.
| Years of Service | Gratuity Rate | Formula |
|---|---|---|
| Less than 1 year | No gratuity | Minimum 1 year required by law |
| 1 to 5 years | 21 days per year | (Salary / 30) x 21 x years |
| More than 5 years | 30 days per year (for years beyond 5) | (Salary / 30) x 30 x additional years |
| Any length of service | Maximum cap applies | Cannot exceed 2 years basic salary (salary x 24) |
Daily wage: 8,000 / 30 = AED 266.67
First 5 years: 266.67 x 21 x 5 = AED 28,000
Years 6 and 7: 266.67 x 30 x 2 = AED 16,000
Total gratuity: AED 44,000
2-year cap check: 8,000 x 24 = AED 192,000. Cap not triggered.
The 2-Year Gratuity Cap Explained
Under Article 51 of the 2021 law, total gratuity cannot exceed two years of basic salary (salary multiplied by 24). This cap is reached at approximately 25.5 years of continuous service for any salary level. Here is the mathematics: the first 5 years earn 21 gratuity days each, giving 105 days total. Each year beyond 5 earns 30 days. To reach the 720-day ceiling (24 months x 30 days): (720 minus 105) divided by 30 equals 20.5 additional years. So 5 plus 20.5 equals 25.5 years before the cap is triggered.
Daily wage: 15,000 / 30 = AED 500
First 5 years: 500 x 21 x 5 = AED 52,500
Next 25 years: 500 x 30 x 25 = AED 375,000
Uncapped total: AED 427,500
2-year cap: 15,000 x 24 = AED 360,000
Cap applies. Final gratuity: AED 360,000
Does It Matter Whether I Resigned or Was Terminated?
No. Under Federal Decree-Law No. 33 of 2021, the gratuity formula is identical whether you resigned or were terminated without cause. The old pre-2021 rules where resignation resulted in 1/3 or 2/3 of the full amount were abolished when the new law came into effect. Many online calculators still incorrectly apply those old rules. GulfNabd uses the correct 2021 formula throughout.
The only situation where gratuity can be withheld is dismissal for gross misconduct under Article 44 of the 2021 law. This covers serious offences such as theft, physical assault of colleagues, or providing fraudulent documents to obtain employment.
Limited Contract vs Unlimited Contract
Before the 2021 law, limited and unlimited contracts had different gratuity treatments. Under the current law both contract types use the same calculation formula. Whether your contract has a fixed end date or not, your gratuity is calculated identically. The contract type field in our calculator is provided for reference only and does not change your result.
If a limited contract is not renewed by your employer at the end of its term, that is treated as contract completion and you receive your full gratuity entitlement calculated on your total years of service.
What Counts as Basic Salary?
Gratuity in the UAE is calculated on basic salary only. These components are excluded even if they appear regularly on your payslip:
- Housing allowance
- Transport allowance
- Food allowance
- Medical insurance or allowance
- School fee contributions
- Performance bonuses
- Sales commissions
- Overtime pay
If your employment contract lists only a single total salary figure without separating basic salary from allowances, ask your HR department in writing to confirm your basic salary before your last day. This is the most common source of end-of-service disputes in the UAE.
When Must Your Employer Pay Your Gratuity?
Under Article 53 of UAE Federal Decree-Law No. 33 of 2021, your employer has up to 14 days from your contract end date to settle all end-of-service entitlements including gratuity, unpaid salary, and unused annual leave. If payment is not made within 14 days, file a complaint with MOHRE at mohre.gov.ae or call 800 60. The Ministry provides free mediation and has authority to enforce payment.
Can Your Employer Deduct from Your Gratuity?
Deductions from gratuity are permitted only for outstanding loans or salary advances you have not repaid. Your employer cannot deduct arbitrary amounts, penalise you for resigning, or charge you recruitment or visa fees. If your final settlement statement includes deductions you do not recognise or agree with, do not sign it until every line is explained and verified.
Frequently Asked Questions
Can I get gratuity if I resign from my UAE job?
Yes. Under Federal Decree-Law No. 33 of 2021, you receive the same full gratuity whether you resign or are terminated without cause. The old resignation penalty rules were abolished. You need at least one full year of continuous service with the same employer to qualify.
What is the maximum gratuity I can receive in the UAE?
Your total gratuity cannot exceed two years of your basic salary (salary multiplied by 24). This cap is reached at approximately 25.5 years of continuous service for any salary level. Our calculator automatically checks and applies the cap when triggered.
Is UAE gratuity taxable?
No. The UAE does not impose personal income tax. You receive your full gratuity with zero deductions in the UAE. However your home country may have its own tax obligations for money you bring back. Check your home country tax rules before transferring large amounts.
How is UAE gratuity calculated after 5 years?
For service beyond 5 years the rate increases to 30 days of basic salary per year for each year above 5. The first 5 years earn 21 days each. Our calculator applies this rate change automatically at year 6 and highlights it in the breakdown table.
How long does my employer have to pay my gratuity?
Under Article 53 of UAE Federal Decree-Law No. 33 of 2021, your employer has up to 14 days from your contract end date to settle all end-of-service entitlements. If payment is not received within 14 days, file a complaint with MOHRE at mohre.gov.ae or call 800 60.
Does gratuity include housing and transport allowances?
No. UAE gratuity is calculated on basic salary only. Housing allowance, transport allowance, food allowance, medical insurance, bonuses, and commissions are all excluded from the gratuity calculation regardless of how regularly they appear on your payslip.
Can I get gratuity on a limited contract in the UAE?
Yes. Under the 2021 law, employees on limited (fixed term) contracts receive gratuity on exactly the same basis as unlimited contracts. The old rules that treated limited contracts differently no longer apply.
Why Use the GulfNabd UAE Gratuity Calculator 2026
The GulfNabd UAE gratuity calculator 2026 is built specifically for expats working in the UAE private sector. Unlike generic calculators that use outdated pre-2021 formulas or ignore the 2-year salary cap, this UAE gratuity calculator applies the exact rules set out in UAE Federal Decree-Law No. 33 of 2021, Article 51. Every calculation is transparent, showing you the daily wage, the rate applied for each year, and whether the 2-year cap has been triggered, so you know exactly how your final number was reached.
Who This UAE Gratuity Calculator Is For
This UAE gratuity calculator 2026 is designed for any expat working in the UAE private sector who is planning to resign, has received a termination notice, or wants to understand their end-of-service entitlement before signing a final settlement. It covers all seven emirates including Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. It works for all nationalities including Indian, Filipino, Pakistani, Sri Lankan, Bangladeshi, Egyptian, and British expats. Whether you are a nurse, engineer, accountant, teacher, driver, or retail worker, the same UAE gratuity law applies to you and this calculator gives you the correct result.
What Makes This UAE Gratuity Calculator Different
Most UAE gratuity calculators available online still apply the old pre-2021 resignation penalty rules that reduced gratuity for employees who resigned. Those rules were abolished by Federal Decree-Law No. 33 of 2021. This UAE gratuity calculator 2026 uses only the current law, where resignation and termination without cause receive exactly the same full gratuity entitlement. It also applies the correct two-tier rate automatically, switching from 21 days per year to 30 days per year at year 6, and checks your result against the 2-year salary cap without you having to do anything manually.
How to Use This UAE Gratuity Calculator 2026
Using this UAE gratuity calculator takes less than 60 seconds. Here is all you need to do:
- Enter your employment start date and end date using the date pickers at the top of the calculator.
- Enter your monthly basic salary in AED. Use your basic salary only, not your total package including allowances.
- Select your reason for leaving from the dropdown. If you are unsure, both resignation and termination without cause give the same result under the 2021 law.
- Click Calculate My UAE Gratuity and your result appears instantly with a full year-by-year breakdown.
- Use the WhatsApp share button to send your result to yourself or a trusted person, download it as a PDF report, or copy the result to your clipboard.
Share This UAE Gratuity Calculator With Every UAE Expat You Know
Hundreds of thousands of expats leave UAE jobs every year without knowing the exact gratuity they are owed. Many accept final settlements that are lower than their legal entitlement simply because they did not check beforehand. Bookmark this UAE gratuity calculator 2026 on your phone and share it with every colleague, friend, or family member working in the UAE private sector. It is completely free, works on all devices, and takes less than a minute to use. GulfNabd updates this UAE gratuity calculator within 48 hours of any change to UAE labour law so the result you get today reflects the correct 2026 rules.