UAE End-of-Service Gratuity Calculator
Calculate your UAE end-of-service gratuity under Article 51 of the Labour Law. 21 days basic wage for first 5 years, 30 days thereafter.
Employment Details
End-of-Service Gratuity
Total Gratuity
AED 67,500
Per Article 51 of UAE Labour Law
First 5 years (21 days/yr)
AED 52,500
Beyond 5 years (30 days/yr)
AED 15,000
Daily Wage (basic / 30)
AED 500
2-Year Cap
AED 360,000
UAE gratuity under Article 51
UAE Labour Law requires employers to pay an end-of-service benefit (EOSB) to private-sector employees who complete at least 1 year of service. The formula: 21 days of basic wage for each of the first 5 years, plus 30 days for each year beyond 5, capped at 2 years' total wage.
Based on basic salary only
Gratuity is calculated on the last drawn basic salary — not the total package. Housing, transport, education, and all other allowances are excluded. MOHRE does enforce a reasonable basic-to-total ratio, so employers cannot gut gratuity by reducing basic to AED 1.
2022 Labour Law updates
All new contracts since February 2022 are fixed-term/limited. The old 1/3 and 2/3 reductions for resignation under unlimited contracts are no longer applicable. Full gratuity is payable on completion of 1 year of service regardless of whether you resign or are terminated.
DEWS & alternative end-of-service schemes
DIFC employees participate in DEWS — a mandatory defined-contribution savings plan (5.83%/8.33% of basic). Employer contributes monthly to a regulated trust instead of accruing a single lump sum. ADGM and several mainland free zones have rolled out similar voluntary alternatives since 2023.
Frequently Asked Questions
Everything you need to know, in one place.
How is UAE gratuity calculated?
21 days of basic wage for each of the first 5 years of continuous service, plus 30 days of basic wage for each year beyond 5. Capped at 2 years total wage. Based on last basic salary — not total package including allowances.
Do I lose gratuity if I resign?
Under the 2022 Labour Law, all new contracts are fixed-term/limited. Full gratuity is payable on completion of 1 year of service regardless of whether you resign or are terminated — earlier 1/3-2/3 reductions were removed.
What counts as "basic salary"?
The figure stated as "basic" in your MOHRE-registered employment contract. Excludes housing, transport, education, or other allowances. Employers cannot artificially depress basic to reduce gratuity — MOHRE enforces a reasonable ratio.
What is the new DEWS / Savings Scheme?
DIFC Employee Workplace Savings: mandatory end-of-service savings plan at DIFC (Dubai International Financial Centre). Employers contribute monthly instead of accumulating a single lump sum. Other free zones and ADGM have similar voluntary schemes rolling out nationwide.
When must the employer pay my gratuity?
Within 14 days of your last working day (Article 53 of the 2022 Labour Law). Final settlement should include: end-of-service gratuity, unpaid salary, accrued untaken annual leave encashment, and any contractual bonuses. Delays are a violation — file a complaint with MOHRE or via the Ministry of Human Resources app. For salaries above AED 100k, MOHRE may route disputes to the Labour Court; most cases resolve through mediation in 2-6 weeks without needing litigation.
Is my gratuity tax-free?
Yes — UAE has no personal income tax, so gratuity is received in full. However, if you return to a tax-resident home country in the year you receive it, that country may tax the lump sum (US, UK split-year rules, India returning NRI rules, etc.). Consider timing of receipt and departure carefully. Transfers of large gratuity lump sums above AED 55,000 trigger compliance checks under UAE AML rules, but are legal — simply document source of funds (pay slip, employment contract).
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