Easily calculate your end of service gratuity in the UAE. Our intuitive tool applies the latest UAE Labour Law (Federal Decree-Law No. 33 of 2021) to estimate your entitlements based on your basic salary and years of service. Get an accurate gratuity estimate quickly for employees across Dubai, Abu Dhabi, and all seven Emirates.
Formula:
The gratuity calculation in the UAE is based on your last basic salary and years of service, as per Federal Decree-Law No. 33 of 2021. For employees completing one year or more of continuous service:
- For the first five years of service: 21 days' basic salary for each year.
- For subsequent years (over five years): 30 days' basic salary for each additional year.
The total gratuity amount shall not exceed two years' total basic salary. The calculation assumes a 30-day month for converting monthly basic salary to a daily rate.
Formula variables:
B = Basic Monthly SalaryD = B / 30 (Daily Basic Salary)Y = Total Years of Service (including fractions)
If Y < 1: Gratuity = 0
If 1 ≤ Y ≤ 5: Gratuity = Y × 21 × D
If Y > 5: Gratuity = (5 × 21 × D) + ((Y - 5) × 30 × D)
Final Step: Gratuity = Min(Calculated Gratuity, 24 × B)