How UAE end-of-service gratuity is calculated

This guide sets out the rules for expatriate workers in the UAE private sector, as published by the UAE Government on u.ae (which cites Article 51 of Federal Decree-Law No. 33 of 2021 and Article 30 of Cabinet Resolution No. 1 of 2022).

Who is entitled

A full-time worker who has completed at least one year of continuous service. Days of absence without pay are not counted. A worker with less than a year gets no gratuity. Emiratis are under the pension and social security legislation instead.

The amount

Take the last basic salary and divide by 30 to get a day's salary (our working: u.ae does not say how a day is counted).
Multiply by 21 for each of the first 5 years and by 30 for each year after the first 5, in proportion for part years.
If the total is more than 24 months of basic salary, pay 24 months.

Example: basic salary AED 6,000 and 8 years of service. A day is AED 200. First 5 years: 5 × 21 = 105 days. Next 3 years: 3 × 30 = 90 days. Total 195 days = AED 39,000.

What counts as salary

Only the basic salary. Housing, transport, utilities and furniture allowances are not included. So a package of AED 10,000 with a basic of AED 5,000 gives gratuity on AED 5,000.

Part-time and other work patterns

The gratuity is the full-time amount multiplied by the percentage of (working hours in the contract per year) ÷ (working hours in a full-time contract per year). It does not apply to temporary employment under one year.

When it must be paid

Within 14 days of the end of the contract, with all other dues. The employer may deduct amounts the worker owes.

Common questions

Is gratuity paid when I resign?

The u.ae page says a worker with at least 1 year of continuous service is entitled to gratuity "upon the termination of their service" and does not set different amounts for resignation. Check your own case with MOHRE.

Does unpaid leave count?

No. Days of absence without pay are not included in the service period.

Can the employer take money out of my gratuity?

The u.ae page says the employer may deduct any amounts owed by the worker from the gratuity.

Use the calculator

Sources

UAE Government portal u.ae, "End of service benefits for workers in the private sector" (u.ae), read on 13 November 2026. It quotes Article 51 of Federal Decree-Law No. 33 of 2021 and Article 30 of Cabinet Resolution No. 1 of 2022. Everything about the 21 and 30 days, the two-year cap, the basic salary, the 14-day payment deadline, part-time workers and the Savings Scheme comes from that page.
The only assumption: a "day" of salary is the monthly basic salary divided by 30. The page does not state the divisor; check how your employer or MOHRE counts it.

Rules read on 13 November 2026 from the UAE Government portal. They apply to expatriate workers in the private sector; Emiratis follow the pension and social security legislation. Laws change and your contract may give more. This site is not connected with the UAE Government or MOHRE and gives no legal advice: contact the Ministry of Human Resources and Emiratisation for your own case.