GratuityCalc

UAE Gratuity Calculator 2026

Use our free, accurate tool to calculate your UAE end-of-service gratuity for 2026. This hub covers the MOHRE gratuity calculator formula, Abu Dhabi and Dubai variations, and the Federal Decree-Law No. (33) of 2021 rules governing both UAE Labour Law and UAE Labor Law relations in the UAE.

Sources checked

UAE formula references are checked against MOHRE worker guidance and Federal Decree-Law No. 33 of 2021: basic wage, 21 days for the first five years, 30 days after, and the 14-day final settlement deadline.

Updated for UAE Labour Law 2023MOHRE Official Formula
AED

Basic salary only — not including allowances

Defaults to today

All new contracts since Feb 2, 2022 are Limited

Enter your salary and service dates to see your gratuity calculation

Related UAE Regional Tools & Resources

Need a formal settlement? Use our Full End-of-Service Calculator for a complete breakdown.

How to Use the UAE Gratuity Calculator

According to the Ministry of Human Resources and Emiratisation (MOHRE), every employee who completes one or more years of continuous service is entitled to an end-of-service gratuity at the end of their service.

Important Update

Since February 2022, the UAE has moved exclusively to Limited (Fixed-term) contracts. Unlimited contracts signed before this date remain valid but must eventually be converted.

How the Tiers Work

First 5 Years
21 Days' Basic Pay

Example: 30 days served = ~1.75 days gratuity earned.

Beyond 5 Years
30 Days' Basic Pay

Applied for each year of service exceeding 5 years.

UAE Tiered Formula

EOSB = (Basic ÷ 30) × Days × Years
BasicThe fixed basic salary amount in your contract.
30Divisor for calendar days in a month.
Days21 for years 1-5, and 30 for years beyond.

UAE Worked Example

Senior Executive Case

Omar is a senior marketing executive in Abu Dhabi. Basic salary: AED 15,000/month. Service: 8 years.

1
Daily WageAED 500
2
First 5 Years (T1)5 × 21 × 500 = AED 52,500
3
Next 3 Years (T2)3 × 30 × 500 = AED 45,000
Total BenefitAED 97,500

Eligibility & Reformed Contracts

As of the 2023 reforms, all UAE contracts are now Limited (Fixed-Term). Resignation and termination are now treated equally—there are no longer any percentage reductions for resigning early.

Note: If your contract was signed before February 2, 2022 as an unlimited contract, the old resignation reduction rules still apply: 1–3 years service receives 1/3 of gratuity, 3–5 years receives 2/3.

1 Year
Min Service
14 Days
Payout Deadline
2 Years
Maximum Cap

Free Zone Exception: DIFC

If you work in the DIFC, you are likely part of the DEWS (Workplace Savings) plan. Instead of a lump sum, your employer contributes monthly to a investment fund. Check with HR if you are in DIFC or ADGM.

Official MOHRE Reference

Visit official MOHRE website

Frequently Asked Questions

What is the UAE labour law end-of-service gratuity calculation for 2026?

For UAE mainland private sector employees, 2026 end-of-service gratuity is calculated on basic salary only. The formula is 21 days of basic pay per year for the first 5 years, then 30 days per year after 5 years. The total gratuity is capped at two years of basic salary.

How do I calculate UAE gratuity from basic salary?

Divide your monthly basic salary by 30 to get the daily wage. Multiply that daily wage by 21 for each of the first 5 years of service. For service beyond 5 years, multiply the daily wage by 30 for each extra year.

How is gratuity calculated in the UAE in 2026?

UAE gratuity is based on basic salary only. For the first 5 years: (Basic ÷ 30) × 21 × Years. For years beyond 5: add (Basic ÷ 30) × 30 × (Years − 5). Total payout cannot exceed 2 years' basic salary.

Is gratuity calculated on gross salary or basic salary?

In both India and UAE, gratuity is calculated on Basic Salary only (plus DA in India). HRA, transport allowance, bonuses, and special allowances are excluded from the calculation base.

What happens if my employer does not pay gratuity on time?

In India, payment is due within 30 days; delays attract interest. In the UAE, all final dues must be cleared within 14 days of the last working day under Article 53. You can file complaints with either the Labour Commissioner (India) or MOHRE (UAE).

How is gratuity calculated in UAE for 2 years?

Under the 2023 law, for a limited contract with 2 years of service, you are entitled to 21 days of basic salary for each year of service. Total = 42 days of basic pay.

Is gratuity calculated on basic salary or total salary in UAE?

In the UAE, gratuity is strictly calculated based on the last drawn Basic Salary. Allowances like housing, transport, and utilities are not included unless specified in the contract.

What is the maximum gratuity in UAE?

The total gratuity amount for an employee in the UAE cannot exceed the equivalent of two years of the employees last drawn salary.

How does the new UAE labour law 2023 change gratuity?

The primary change is that all contracts are now Limited (fixed-term). Resignation reduction rules for unlimited contracts are being phased out as those contracts expire or convert.

All UAE Gratuity Guides

Dubai Gratuity Calculator 2026Dubai private sector employee gratuity. DIFC exception, MOHRE complaint process explained.MOHRE Gratuity Calculator UAEOfficial MOHRE formula, exclusions list, complaint filing, 14-day payment rule.Abu Dhabi Gratuity CalculatorAbu Dhabi mainland and ADGM comparison table, key eligibility stats.JAFZA Gratuity CalculatorJebel Ali Free Zone rules, JAFZA vs DIFC comparison, salary reference table.Sharjah Gratuity CalculatorSharjah mainland and SAIF Zone gratuity, dispute process.UAE End of Service CalculatorFull EOSB breakdown: gratuity + leave encashment + salary + notice pay.Domestic Worker Gratuity CalculatorLaw No. 10 of 2017 formula (1 month/year). Covers housemaids, nannies, private drivers.Freezone Gratuity Calculator8-zone reference table: JAFZA, DMCC, DIFC (DEWS), ADGM, SAIF Zone, RAKEZ, Ajman, Tadbeer.UAE Gratuity Law 2025 ExplainedFederal Decree-Law No. 33: key provisions, old vs new contract comparison table.Gratuity for 2 Years in UAE: Exact Amount, Formula & Examples [2026]UAE gratuity after 2 years = (Basic ÷ 30) × 21 × 2. Find your exact amount by salary, resignation vs. termination rules, partial-year calculation, and the 14-day payment rule.How to Calculate Gratuity in UAE (2026) - Step-by-Step GuideCalculate UAE gratuity correctly using the official MOHRE formula. Step-by-step examples for 3, 8, and 12 years of service. Covers limited contracts, unlimited contract reductions, the 2-year cap, and what to do if your employer doesn't pay within 14 days.