UAE Gratuity Calculator 2026
Whether you are searching for a gratuity calculator Dubai, a gratuity calculator Abu Dhabi, or the official gratuity calculator UAE, this UAE gratuity calculator 2026 provides 100% legally grounded severance estimates for private sector expatriates across all seven Emirates under UAE Labour Law.
Salary & Service Inputs
Calculated under Article 51 of UAE Federal Decree-Law No. 33 of 2021
Under the repealed 1980 Labour Law, you would have suffered a resignation reduction penalty, receiving only AED 16,815.
Full Statutory Breakdown (Articles 51 & 53)
How is Gratuity Calculated in 2026?
In 2026, end-of-service gratuity calculations in the UAE are governed by Federal Decree-Law No. 33 of 2021 and its Executive Regulations (Cabinet Resolution No. 1 of 2022). The calculation follows a strict three-step formula:
Monthly Basic Salary is divided by 30 days: Daily Wage = Basic ÷ 30. All allowances are excluded.
21 days' basic wage per year for the first 5 years (Tier 1); 30 days' wage per year for every year exceeding 5 years (Tier 2).
Total severance is capped at 2 years' basic wage (Article 51(3)). Resigning employees receive 100% full entitlement.
Jurisdiction Rules: Dubai, Abu Dhabi & Free Zones
Whether your employment visa is issued in Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, or Fujairah, mainland private sector companies are all unified under the same federal labour law:
Companies licensed by the Dubai Department of Economy and Tourism (DET) and free zones like DMCC, TECOM, DAFZA, and JAFZA follow Federal Decree-Law No. 33 of 2021.
Companies licensed by Abu Dhabi DED follow the exact same federal law. Public sector civil servants follow local government human resources law.
Employees in the Dubai International Financial Centre operate under DIFC Law No. 2 of 2019 and receive monthly contributions into the DEWS workplace savings scheme instead of traditional lump sum.
Employees in Abu Dhabi Global Market operate under ADGM Employment Regulations 2019.
How UAE Gratuity is Calculated (Article 51)
Federal Decree-Law No. 33 of 2021 mandates the following calculation tiers:
21 Days / Year
21 days of basic wage for each year of continuous service during the first 5 years (pro-rata for partial years).
30 Days / Year
30 days of basic wage for every additional year beyond 5 years of continuous service.
2 Years Basic Salary
The total aggregate gratuity cannot exceed 24 months (two years) of the employee’s basic wage under Article 51(3).
UAE Gratuity Payout Chart by Salary & Tenure
Instant statutory estimates for standard private-sector monthly basic salaries under Federal Decree-Law No. 33 of 2021.
| Monthly Basic | 1 Year | 2 Years | 3 Years | 5 Years | 7 Years | 10 Years |
|---|---|---|---|---|---|---|
| AED 5,000 | AED 3,500 | AED 7,000 | AED 10,500 | AED 17,500 | AED 27,500 | AED 42,500 |
| AED 8,000 | AED 5,600 | AED 11,200 | AED 16,800 | AED 28,000 | AED 44,000 | AED 68,000 |
| AED 12,000 | AED 8,400 | AED 16,800 | AED 25,200 | AED 42,000 | AED 66,000 | AED 102,000 |
| AED 15,000 | AED 10,500 | AED 21,000 | AED 31,500 | AED 52,500 | AED 82,500 | AED 127,500 |
| AED 20,000 | AED 14,000 | AED 28,000 | AED 42,000 | AED 70,000 | AED 110,000 | AED 170,000 |
| AED 25,000 | AED 17,500 | AED 35,000 | AED 52,500 | AED 87,500 | AED 137,500 | AED 212,500 |
| AED 35,000 | AED 24,500 | AED 49,000 | AED 73,500 | AED 122,500 | AED 192,500 | AED 297,500 |
All formulas, statutory caps, and eligibility criteria on this platform are strictly derived from official UAE federal legislations and ministerial decrees. We do not use third-party assumptions or unverified rules.
Foreign full-time workers completing 1+ year continuous service receive 21 days basic wage/yr for first 5 years, and 30 days basic wage/yr for subsequent years, not to exceed 2 years total basic salary.
Employers must settle all worker dues within 14 calendar days from contract severance.
Part-time gratuity equals (Contracted Annual Hours ÷ Full-Time Annual Hours) multiplied by Full-Time Equivalent Gratuity.
Employers enrolled in the voluntary savings scheme contribute monthly into licensed funds (5.83% for first 5 yrs, 8.33% thereafter). Traditional lump sum does not apply to participating workers.
UAE End of Service Gratuity Rules & FAQs
Legal clarifications grounded in UAE Federal Decree-Law No. 33 of 2021 and official MOHRE labour guidance.
For exactly 5 completed years of continuous service in the UAE mainland private sector, you receive 21 days of basic wage for each year (5 × 21 = 105 days of basic salary). For example, if your monthly basic salary is AED 10,000, your daily wage is AED 333.33 (10,000 ÷ 30), and your 5-year gratuity is exactly AED 35,000 (105 × 333.33). Under Federal Decree-Law No. 33 of 2021, you receive 100% full entitlement whether you resigned or were terminated, provided statutory notice is observed.
Official Legal Disclaimer & Scope of Application
This UAE Gratuity Calculator is an automated computation tool built strictly according to statutory standards codified under Federal Decree-Law No. 33 of 2021 (Regulation of Labour Relations) and Cabinet Resolution No. 1 of 2022. It is provided for personal evaluation, budgeting, and general estimation purposes only.
Individual contracts may carry explicit clauses, pre-existing valid agreements, non-compete terms, or approved alternative workplace savings funds (Cabinet Resolution No. 96 of 2023). For official labor disputes, file a grievance via the MOHRE Smart App or call the toll-free helpline at 600 590 000.