Free UAE tool

UAE Gratuity Calculator.

Your end-of-service benefit (EOSB) under Federal Decree-Law 33/2021 — the 21-day and 30-day bands, pro-rata fractions, unpaid leave and the two-year cap, computed exactly. Free, instant, and nothing to sign up for.

This is the same calculation engine that runs inside SashERP's payroll — the one that produces final settlements and WPS files for UAE companies every month.

Basic salary only — exclude housing, transport and other allowances.

Fill in the three fields above — the result appears instantly and never leaves your browser.

How UAE gratuity is calculated.

The UAE Labour Law (Federal Decree-Law 33/2021, in force since 2 February 2022) gives every eligible employee an end-of-service gratuity based on their basic salary and length of service:

21 daysof basic salary per year, for each of the first five years of service.
30 daysof basic salary per year, for every year of service beyond five.
2-year capthe total gratuity can never exceed 24 months of basic salary.

The daily rate is the monthly basic salary divided by 30. Service below one year earns no gratuity; beyond one year, fractions of a year are paid pro-rata. Unpaid leave days don't count as service. Since the 2022 reform there is no reduction for resigning — leavers and terminated employees receive the same formula, and everything must be paid within 14 days of the end date.

Worked example: basic salary AED 8,000, exactly 7 years of service. Daily basic = 8,000 ÷ 30 = AED 266.67. First five years: 5 × 21 × 266.67 = AED 28,000. Years six and seven: 2 × 30 × 266.67 = AED 16,000. Total gratuity: AED 44,000.

Frequently asked questions.

Is gratuity calculated on basic or gross salary?

Basic salary only. Housing, transport, telephone and other allowances are excluded — which is why the same gross package can produce very different gratuities depending on how it is split.

Do I get gratuity if I resign?

Yes — in full. The old unlimited-contract rule that reduced gratuity to one third or two thirds on resignation was abolished by the 2022 law. One completed year of service is the only eligibility condition.

Who is outside these rules?

DIFC and ADGM employees have their own funded schemes (e.g. DIFC's DEWS) instead of the federal formula. UAE and GCC nationals are enrolled in pension schemes such as GPSSA rather than gratuity. Some employers also opt into MOHRE's voluntary alternative savings scheme, which replaces gratuity with monthly funded contributions.

Does unpaid leave affect it?

Yes — unpaid leave days are not days of service, so they are deducted before the calculation. This calculator has a field for exactly that.

When must it be paid?

Within 14 days of the contract end date, together with any other end-of-service entitlements such as unused annual leave encashment and notice-period dues.

Running a company? Stop calculating this by hand.

SashERP computes EOSB, WPS SIF files, leave balances and full final settlements automatically — for your whole team, every month, with the UAE rules built in.