Gratuity, also known as end-of-service benefit, is a lump-sum payment that every eligible employee in the United Arab Emirates receives after completing one year of continuous service. It is a token of appreciation and legal obligation defined under Federal Decree-Law No. 33 of 2021 and subsequent amendments in 2025.
The Ministry of Human Resources and Emiratisation (MOHRE) supervises the implementation of this law to ensure fair treatment of employees and compliance by employers throughout the UAE.
The gratuity calculation depends on your basic salary, contract type, and total service duration. Only the basic salary is considered – allowances, bonuses, and commissions are excluded.
- For the first 5 years: 21 days of basic salary per year.
- After 5 years: 30 days of basic salary per year.
- Maximum limit: Two years of total wages.
ℹ️Example
If you earn AED 10,000 basic salary and served 7 years:
First 5 years = 21 × 10,000 ÷ 30 × 5 = AED 35,000
Next 2 years = 30 × 10,000 ÷ 30 × 2 = AED 20,000
Total Gratuity = AED 55,000
Read our Step-by-Step Gratuity Formula Guide
You become eligible once you complete at least one year of continuous service. You must not have been terminated for misconduct under Article 44 of the UAE Labour Law. Even resigning employees qualify as long as proper notice and handover are done. Employees on limited or unlimited contracts both have rights to gratuity, though the rules vary slightly depending on the situation. Visit Gratuity Eligibility Rules 2025
| Limited Contracts | Unlimited Contracts |
|---|
| Gratuity is due after completion of the contract term or if resignation occurs after one year. The formula is based on the same 21/30-day rule. | Gratuity is payable after one year of service even if you resign voluntarily. The employer must settle payment within 14 days of your last working day. Both contract types are now more balanced under the 2025 law update. |
Learn more in our Limited vs Unlimited Contracts in UAE – 2025 Guide
The MOHRE has established strict guidelines for employers to process gratuity accurately and on time.
- Payment must be cleared within 14 days after the employee’s last day.
- Calculation is based on the last drawn basic salary.
- Employers must document the final settlement through a signed clearance letter.
- Delay in payment can result in penalties and labour complaints.
See our MOHRE Law Reference Section
Different free zones like DMCC, DDA, and JAFZA may have independent policies, but most follow the federal UAE Labour Law structure for gratuity.
Employees receive gratuity unless enrolled in an approved savings scheme.
Adopts MOHRE’s federal law with the same 21/30-day structure.
Follows standard federal calculation unless the employment contract states otherwise.
Explore Free Zone Gratuity Guide
Employees who resign after completing a year of service still qualify for gratuity. The amount is based on total years served.
Employees who resign after completing a year of service still qualify for gratuity. The amount is based on total years served.
| Years of Service | Entitlement |
|---|
| 1 – 5 Years | 21 days per year |
| Over 5 Years | 30 days per year |
💡Example
A teacher earning AED 7,500 basic salary for 6 years = approx. AED 45,000 gratuity.
Read our Resignation Gratuity Calculation Guide
Domestic workers – housemaids, drivers, nannies, and similar roles – are covered under Federal Decree-Law No. 9 of 2022. They are entitled to the same benefit structure:
- 21 days of basic wage per year of service.
- Payable after one year of continuous employment.
- Must be settled within 10 days after contract completion.
Learn more at Domestic Workers Rights in UAE
This online gratuity calculator makes it easy for employees in the UAE to estimate their end-of-service benefits. By entering your salary, service duration, and contract details, you can instantly view an accurate calculation based on the latest MOHRE labor regulations. It’s a quick and reliable way to understand your final payout before leaving a job.
- Enter your basic salary.
- Choose years and months of service.
- Select contract type.
- Choose a reason for leaving.
- Click Calculate to see instant results.
See Calculator Usage Guide
- Including allowances – Only basic salary counts.
- Working less than a year – No gratuity entitlement.
- Absconding or disciplinary termination – Gratuity is forfeited.
- Late payment by employer – You can file a complaint with MOHRE.
Check Common Gratuity Mistakes to Avoid
- Free and instant results.
- Legally accurate and updated for 2025.
- Covers all employee types.
- Clear and trustworthy calculations.
About the Gratuity Calculator Tool
- Keep signed copies of your contract.
- Confirm basic salary breakdown.
- Avoid unexcused absences.
- Serve notice period.
- Request written settlement summary.
For further verification or complaints, refer to official UAE sources:
The UAE Gratuity Calculator 2025 offers a transparent way to understand your end-of-service rights under the latest labour law. Whether you work in the private sector, a free zone, or as a domestic worker, this tool makes it simple to see how your gratuity is calculated. By following MOHRE’s official rules and staying updated with UAE Labour Law 2025, you can secure your financial rights confidently.
Learn about UAE Labour Law 2025 Updates