UAE Gratuity Calculator — Current Law, No Resignation Cut
Most UAE gratuity calculators on the internet still use rules that were repealed in February 2022 — including resignation cuts that no longer exist. This one applies Article 51 of Federal Decree-Law 33/2021 as it stands today: 21 days of basic salary per year for the first 5 years, 30 days per year after, whether you resign or are terminated.
| Component | Days | Amount (AED) |
|---|
Your settlement is often the largest single transfer you will ever make from the UAE. Compare the live AED rate and total fees first — a 2% better rate on AED 50,000 is AED 1,000 saved.
How UAE gratuity is calculated (current law)
- Daily basic wage = monthly basic salary ÷ 30
- Years 1–5: 21 days of basic wage per year
- Year 6 onwards: 30 days of basic wage per year
- Part years count pro-rata once you pass one year
- Resignation: full gratuity — the old ⅓ and ⅔ cuts were abolished on 2 Feb 2022
- Cap: total gratuity cannot exceed 2 years of your total wage (that's why we ask for total salary)
- The old "limited vs unlimited contract" distinction no longer affects gratuity
Worked example
Priya's basic salary is AED 8,000 (total AED 12,000) and she completes 7 years.
Daily basic = 8,000 ÷ 30 = AED 266.67
First 5 years: 21 × 5 = 105 days · Next 2 years: 30 × 2 = 60 days · Total 165 days
Gratuity = 165 × 266.67 = AED 44,000 (cap = 2 × 12,000 × 12 = AED 288,000 — not reached)
The same answer applies whether Priya resigns or her contract ends.
Frequently asked questions
How is gratuity calculated in the UAE?
Under Article 51 of Federal Decree-Law 33/2021: 21 days of basic salary for each of the first 5 years of service, and 30 days of basic salary for each year after that. The daily rate is your monthly basic salary divided by 30. The total is capped at two years of your total wage.
I resigned. Is my UAE gratuity reduced?
No. Since the new labour law took effect on 2 February 2022, there is no reduction of gratuity for resignation, for any contract type. Websites still showing one-third or two-thirds resignation cuts are using the old, repealed law.
What is the minimum service for UAE gratuity?
You must complete at least one full year of continuous service. Below one year, no gratuity is payable under the law.
Are allowances counted in UAE gratuity?
No. Gratuity is calculated on your basic salary only. Housing, transport and other allowances do not count toward the daily rate — but note the overall cap is measured against your total wage.
What is the maximum gratuity in the UAE?
Your total gratuity cannot exceed the equivalent of two years of your total wage (basic plus allowances). Very long-serving, high-allowance employees are the ones who usually reach this cap.
More UAE & Gulf tools:
UAE Final Settlement Calculator ·
UAE Leave Salary Calculator ·
Is AED 10,000 a good salary in Dubai? ·
Saudi End of Service Calculator ·
Qatar Gratuity Calculator
Disclaimer: estimate based on UAE Federal Decree-Law 33/2021, Article 51. The alternative savings scheme (where an employer has enrolled) pays differently. General information, not legal advice.