Verified under UAE Federal Decree-Law No. 33 of 2021 & MOHRE Directives
Updated for 2026 • Federal Decree-Law No. 33 of 2021

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.

Popular Career Scenarios:

Salary & Service Inputs

Calculated under Article 51 of UAE Federal Decree-Law No. 33 of 2021

Excludes Allowances
AED
AED 2,000AED 25,000AED 50,000+
Net Statutory GratuityQualified (1+ Year)
25,222.68AED
Expat Approx:
AED 25,222.68
Statutory 2-Year Cap Reach:9% of Cap (Max AED 288,000)
Total Duration3y 0m 1d
Daily Basic Wage400.00 AED
Cap StatusWithin Cap
Decree-Law 33/2021 Resignation Advantage!

Under the repealed 1980 Labour Law, you would have suffered a resignation reduction penalty, receiving only AED 16,815.

Protected Legal Advantage:+AED 8,408 More

Full Statutory Breakdown (Articles 51 & 53)

Daily Basic Wage400.00 AED
Formula: 12,000 AED ÷ 30 days
Gratuity is calculated strictly on the last basic salary divided by 30 (allowances excluded).
UAE Labour Law Article 51 & Cabinet Resolution No. 1/2022
Tier 1 Entitlement (First 5 Years)25,222.68 AED
Formula: 3.0027 years × 21 days × 400.00 AED/day
21 days of basic wage for each year of service during the first 5 years (pro-rata for partial years).
Article 51(2)(a)
Gross Statutory Gratuity25,222.68 AED
Formula: 25,222.68 AED + 0 AED
Sum of Tier 1 (1st 5 years) and Tier 2 (> 5 years) entitlements.
Article 51(2)
Mandatory Rule: Final settlement must be disbursed within 14 calendar days of contract termination per Article 53 of Federal Decree-Law No. 33 of 2021.

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:

1. Daily Wage Formula:

Monthly Basic Salary is divided by 30 days: Daily Wage = Basic ÷ 30. All allowances are excluded.

2. Two-Tier Tenure Accrual:

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).

3. Statutory Safeguards:

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:

Dubai Mainland & Free Zones:

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.

Abu Dhabi Mainland:

Companies licensed by Abu Dhabi DED follow the exact same federal law. Public sector civil servants follow local government human resources law.

DIFC Free Zone (DEWS Scheme):

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.

ADGM Free Zone:

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:

Tier 1 (First 5 Years)

21 Days / Year

21 days of basic wage for each year of continuous service during the first 5 years (pro-rata for partial years).

Tier 2 (Beyond 5 Years)

30 Days / Year

30 days of basic wage for every additional year beyond 5 years of continuous service.

Statutory Ceiling

2 Years Basic Salary

The total aggregate gratuity cannot exceed 24 months (two years) of the employee’s basic wage under Article 51(3).

Quick Reference Matrix

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 Basic1 Year2 Years3 Years5 Years7 Years10 Years
AED 5,000AED 3,500AED 7,000AED 10,500AED 17,500AED 27,500AED 42,500
AED 8,000AED 5,600AED 11,200AED 16,800AED 28,000AED 44,000AED 68,000
AED 12,000AED 8,400AED 16,800AED 25,200AED 42,000AED 66,000AED 102,000
AED 15,000AED 10,500AED 21,000AED 31,500AED 52,500AED 82,500AED 127,500
AED 20,000AED 14,000AED 28,000AED 42,000AED 70,000AED 110,000AED 170,000
AED 25,000AED 17,500AED 35,000AED 52,500AED 87,500AED 137,500AED 212,500
AED 35,000AED 24,500AED 49,000AED 73,500AED 122,500AED 192,500AED 297,500
Formula: 21 days/yr for first 5 yrs; 30 days/yr for excess years. Daily wage = Basic ÷ 30.Max Cap: 2 Years' Basic Wage (24 Months)
Official UAE Legal Authorities & Regulatory References

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.

Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations
Article 51, Clauses 1, 2, 3, 4, 5, 6 • Ministry of Human Resources and Emiratisation (MOHRE)

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.

Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations
Article 53 • Ministry of Human Resources and Emiratisation (MOHRE)

Employers must settle all worker dues within 14 calendar days from contract severance.

Cabinet Resolution No. 1 of 2022 on the Executive Regulations of Federal Decree-Law No. 33 of 2021
Article 30 • UAE Cabinet / MOHRE

Part-time gratuity equals (Contracted Annual Hours ÷ Full-Time Annual Hours) multiplied by Full-Time Equivalent Gratuity.

Cabinet Resolution No. 96 of 2023 on the Alternative End-of-Service Benefits System
Cabinet Resolution No. 96 of 2023 • UAE Cabinet / Securities and Commodities Authority (SCA) / MOHRE

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.

Frequently Asked Questions

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.

Applicable Sector:Private-sector foreign national employees working in the UAE mainland and standard free zones governed by MOHRE.
Excluded / Separate Regimes:DIFC (governed by DIFC Law No. 2/2019 & DEWS), ADGM, and UAE/GCC Nationals (governed by GPSSA/ADPF pension laws).

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.