How UAE gratuity is calculated
Under Article 51 of Federal Decree-Law No. 33 of 2021, a private sector employee who completes at least one year of continuous service earns gratuity based on their last basic salary:
- 21 days of basic salary for each of the first five years.
- 30 days of basic salary for each year after five years.
- Part years are paid in proportion to the time worked.
- The total cannot be more than two years of basic salary.
Days of unpaid leave or absence are not counted as service. A day's pay is commonly worked out as basic monthly salary divided by 30, which is what this calculator uses.
Worked examples
| Basic salary | Service | Days paid | Gratuity |
|---|---|---|---|
| AED 4,000 | 3 years | 3 × 21 = 63 | AED 8,400 |
| AED 5,000 | 7 years | 105 + 60 = 165 | AED 27,500 |
| AED 10,000 | 10 years | 105 + 150 = 255 | AED 85,000 |
Example for AED 5,000 basic and 7 years: a day's pay is AED 166.67. The first five years give 105 days and the next two give 60 days, so 165 days × AED 166.67 = AED 27,500.