UAE gratuity calculator
Your end-of-service gratuity under the UAE labour law, from your basic salary and length of service. There is no income tax on salaries in the UAE.
How it is worked out
Part years count pro rata, so an extra six months adds half a year’s entitlement. Your numbers, step by step.
Is it taxed?
The UAE has no personal income tax on salaries, and gratuity is paid in full with no tax taken off. It is for foreign employees: UAE nationals are covered by the state pension instead. Some employers pay into an approved savings scheme in place of gratuity.
Rules and sources
- UAE Government portal: end-of-service benefits for employees in the private sector
- Federal Decree-Law No. 33 of 2021, Article 51: 21 days’ basic wage a year for the first five years and 30 days for each year after, capped at two years’ wage; unpaid absence is not counted. Daily wage = monthly basic ÷ 30.
Questions people ask
Does resigning reduce my gratuity?
No. Under the labour law in force since February 2022, resignation and termination earn the same gratuity once you have a full year of service. The employer can only deduct amounts you owe them.
How is the daily wage worked out?
Your last monthly basic salary divided by 30. Twenty-one days a year is therefore 70% of a month’s basic pay for each of the first five years, and 30 days is a full month for each year after that. Unpaid absence does not count as service.
Does this apply in DIFC or ADGM?
DIFC replaced gratuity with the DEWS savings plan in 2020, and ADGM has its own employment regulations. This calculator follows the federal law that covers the mainland and most other free zones.