UAE End of Service Gratuity Calculator
Accurately calculate your statutory end-of-service severance entitlement under UAE Ministry of Human Resources and Emiratisation (MOHRE) Federal Decree-Law No. 33 of 2021. Models 21-day and 30-day tiers, pro-rata service fractions, zero resignation penalties, statutory 2-year wage ceiling, and real-time expat currency remittances.
Employment Tenure & Basic Wage
Microsecond Client-SideStatutory Gratuity Settlement
MOHRE 2026 CertifiedUAE End of Service Gratuity Benchmark Matrix (2026)
Representative calculations across service tenure milestones under Federal Decree-Law No. 33 of 2021.
| Service Tenure | Basic Salary: 5,000 AED | Basic Salary: 10,000 AED | Basic Salary: 20,000 AED | Basic Salary: 35,000 AED | Formula Applied |
|---|---|---|---|---|---|
| 6 Months (< 1 Year) | 0 AED | 0 AED | 0 AED | 0 AED | Article 51(1) 1-Year Minimum Floor |
| 2 Years | 7,000 AED | 14,000 AED | 28,000 AED | 49,000 AED | 2 × 21 Days (42 Days) |
| 5 Years | 17,500 AED | 35,000 AED | 70,000 AED | 122,500 AED | 5 × 21 Days (105 Days) |
| 8 Years | 32,500 AED | 65,000 AED | 130,000 AED | 227,500 AED | (5 × 21d) + (3 × 30d) = 195 Days |
| 15 Years | 67,500 AED | 135,000 AED | 270,000 AED | 472,500 AED | (5 × 21d) + (10 × 30d) = 405 Days |
| 25 Years (Capped) | 120,000 AED (Cap) | 240,000 AED (Cap) | 480,000 AED (Cap) | 840,000 AED (Cap) | Statutory Cap: 24 Months Basic Salary |
Legal Governance: UAE Gratuity Under Federal Decree-Law No. 33/2021
One-Year Service Threshold
An employee who completes at least one full continuous year of service with the employer is entitled to end-of-service gratuity upon separation. If service is under one year, zero gratuity is payable.
21-Day & 30-Day Statutory Tiers
Gratuity is calculated on the basis of 21 days' basic wage for each year of the first five years of service, and 30 days' basic wage for each subsequent year. Pro-rata fractions of years are compensated provided the initial 1-year threshold is fulfilled.
Statutory 2-Year Wage Cap
The aggregate total gratuity payout cannot exceed two years' basic wage (24 months' basic salary), regardless of extended career service spanning decades with the same employer.
Alternative Savings Scheme
Voluntary scheme permitting employers to substitute severance lump-sums with monthly cash investment deposits into accredited funds: 5.83% for years 1-5, and 8.33% for year 6 and beyond.
Statutory Mathematical Formulation
Step-by-step algorithms utilized by MOHRE labor dispute tribunals and corporate payroll software in Dubai and Abu Dhabi.
Daily Basic Wage Calculation
Daily Wage = Last Drawn Monthly Basic Salary / 30.0 Days Under UAE Labour Law, monthly basic salary is divided by 30 calendar days to establish the daily compensation rate.
Entitlement Days Determination
If Tenure ≤ 5 Years: Days = Tenure in Years × 21 Days If Tenure > 5 Years: Days = (5 × 21 Days) + ((Tenure - 5) × 30 Days) Service months and days are converted into fractional years (e.g., 4 years 6 months = 4.5 years).
Gross Severance Value Calculation
Uncapped Gratuity = Daily Wage × Total Entitlement Days Calculates the total unconstrained statutory severance benefit.
Application of Statutory 2-Year Wage Ceiling
Maximum Cap = Monthly Basic Salary × 24 Months Final Gratuity Payable = Minimum(Uncapped Gratuity, Maximum Cap) Guarantees that severance payments strictly comply with Article 51(3) statutory limits.
Frequently Asked Questions: UAE Labour Law Gratuity
How is UAE End of Service Gratuity calculated under Federal Decree-Law No. 33 of 2021?
Under Article 51 of UAE Federal Decree-Law No. 33 of 2021, a full-time employee who completes at least one year of continuous service is entitled to end of service gratuity calculated on basic wage: 21 days' basic wage for each year of the first five years of service, and 30 days' basic wage for each additional year thereafter. Fractional service years are compensated on a pro-rata basis.
Is there a resignation reduction penalty on gratuity in the UAE?
No. Under the reformed UAE Labour Law (Decree-Law No. 33/2021), all unlimited contracts were transitioned to fixed-term contracts, and historical resignation deductions (1/3 or 2/3 cuts under the old 1980 law) were completely abolished. An employee who resigns after completing at least 1 year of continuous service is entitled to 100% of their statutory gratuity.
What is the maximum statutory cap on gratuity payout in the UAE?
Under Article 51(3), the total end of service gratuity payment cannot exceed two years' basic wage (24 months' basic salary), regardless of how many decades the employee has served.
Is gratuity calculated on basic salary or total gross salary in the UAE?
Under UAE Labour Law, gratuity is strictly calculated on the worker's last drawn basic wage. Monthly allowances such as housing, transport, utilities, education, and sales bonuses are legally excluded from the gratuity calculation base.
What is the UAE Alternative End-of-Service Savings Scheme (Cabinet Resolution No. 96 of 2023)?
Introduced by Cabinet Resolution No. 96 of 2023, the Voluntary Alternative End-of-Service Scheme allows employers to opt out of the traditional lump-sum system by making monthly cash contributions into licensed investment funds: 5.83% of monthly basic wage for workers with less than 5 years of service, and 8.33% for workers with 5 or more years.
📊 UAE Statutory & Financial Breakdown Matrix (FTA, MOHRE & GPSSA)
| Statutory Component / Legal Deduction Item | Calculated Amount (AED / د.إ) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 AED |