End-of-service gratuity under the 2021 UAE Labour Law: 21 and 30 days of basic pay a year
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 9 Oct 2026.UAE gratuity is 21 days of the last basic wage for each of the first five years and 30 days for each year after, pro rata for part years, once one year is complete. On AED 10,000 basic for 7.5 years that is about 180 days, AED 60,041, never more than two years' basic wage.
Rates and rules read from the sources listed on this page (the earliest on 9 Oct 2026); they may have changed since.
Enter your last basic monthly salary in AED, without housing, transport or other allowances.
Pick your first day of work and your last working day.
Add any days of unpaid leave or absence, which the law does not count as service.
Keep the daily wage at monthly basic ÷ 30, or switch to yearly basic ÷ 365 if your employer uses it.
Read the gratuity and open How it was worked out to see the days at 21 and 30 a year, then press Share result.
Foreign employees in the UAE private sector are owed an end-of-service gratuity when their job ends, under Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, in force since 2 February 2022. This calculator applies that article to your dates and your basic salary.
The rule. After one full year of continuous service, the gratuity is 21 days of basic wage for each of the first five years and 30 days for each year after that. Part of a year counts in proportion. The total may not exceed two years' wage. Days of unpaid leave or absence are not counted as service. Under one year, nothing is due.
Basic salary only. The law uses the last basic wage. Housing, transport, phone and other allowances, bonuses and commissions are left out, which is why the gratuity is often much smaller than people expect from their total package.
Resigning no longer costs anything. The old 1980 law cut the gratuity for people who resigned early and treated limited and unlimited contracts differently. The 2021 law has one rule for everyone, so leaving by resignation, termination or the end of a contract gives the same amount.
The daily wage. The article does not say how a day's wage is found. The usual practice is the monthly basic divided by 30; some employers use the yearly basic divided by 365, which is about 1.4 per cent less. The calculator starts with ÷ 30 and lets you switch.
| Service on AED 10,000 basic | Days of wage | Gratuity |
|---|---|---|
| 1 year | 21 | AED 7,000 |
| 5 years | 105 | AED 35,000 |
| 10 years | 255 | AED 85,000 |
| 26 years or more | 720 (cap) | AED 240,000 |
What it does not cover. UAE nationals are paid under the pension law instead. Employers in the DIFC and ADGM free zones follow their own employment law. Money your employer may lawfully deduct, and any alternative savings scheme your employer has joined, are not included. Ask MOHRE or a lawyer if your case is disputed. For gratuity in India under the Payment of Gratuity Act (15 days of pay a year, after five years), use the India Gratuity Calculator.
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Under Article 51 of the 2021 Labour Law, an employee with at least one year of service gets 21 days of basic wage for each of the first five years and 30 days for each later year, with part years paid in proportion. A day's wage is usually the monthly basic divided by 30, and the total is capped at two years' wage.
On the basic salary only. The law uses the last basic wage, so housing, transport and other allowances, bonuses and commissions are not part of the calculation. On a package of AED 15,000 with a basic of AED 9,000, the gratuity is worked out on AED 9,000.
Yes, in full, once you have completed one year. The reductions for resigning in the old 1980 law, and the difference between limited and unlimited contracts, were removed by Federal Decree-Law No. 33 of 2021, which took effect on 2 February 2022.
Five full years earn 5 × 21 = 105 days of basic wage. On a basic salary of AED 6,000, a day is AED 200 (6,000 ÷ 30), so the gratuity is AED 21,000. From the sixth year each further year adds 30 days instead of 21.
The total may not exceed two years' wage, which the calculator takes as 24 months of basic salary. At 21 days for five years and 30 days after, the cap is reached after 25.5 years of service; on AED 10,000 basic the most anyone can receive is AED 240,000.
Yes. Article 51 says days of absence from work without pay are not counted as service. Enter them in the unpaid days box and the calculator takes them off before working out the years, which can also push a short job below the one-year minimum.
Rates and rules change; check the source before you rely on a figure.
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