Dubai Gratuity Calculator

Use this Dubai gratuity calculator to work out exactly how much end-of-service gratuity you're owed in AED, based on your basic salary and length of service. It applies the same formula used by MOHRE under Article 51 of Federal Decree-Law No. 33 of 2021, and this guide also covers what changes if you work in the DIFC or another Dubai free zone, since not every Dubai employee is covered by the same rules. Updated for 2026.

✓ Calculates instantly in AED✓ Article 51 FDL 33/2021 cited✓ DIFC DEWS comparison included✓ Updated for 2026

Calculate Your Dubai Gratuity

Free · Instant · Article 51 formula

Resigned or terminated, it doesn't change this calculation — under current UAE labour law both use the same formula, provided you completed at least one year and weren't dismissed for gross misconduct.

Enter your salary and employment dates to see your gratuity estimate.

How to Calculate Gratuity in Dubai

The formula is the same one this calculator runs automatically, but it's worth understanding the steps yourself so you can sanity-check any final settlement your employer issues.

  1. Confirm you've completed at least 1 year of continuous service. If not, you're not yet entitled to gratuity.
  2. Take your last drawn basic monthly salary and divide by 30 to get your daily basic rate.
  3. For each of your first 5 years of service, you accrue 21 days of pay at that daily rate.
  4. For each year of service beyond 5, you accrue 30 days of pay instead of 21.
  5. Add the days together, multiply by your daily rate, then check the result against the 2-year salary cap.
  6. Any partial year (months worked beyond your last full year) is pro-rated at the applicable daily tier.

📐 The formula, written out

Gratuity = (years 1–5 × 21 days + years beyond 5 × 30 days) × (basic salary ÷ 30), capped at basic salary × 24

Basic Salary vs Gross Salary: What Counts Toward Gratuity

This is the single most common source of disputes in final settlements, because employees often calculate gratuity using their total monthly pay rather than the figure the law actually uses.

Used for gratuity

  • Basic salary stated in your MOHRE-registered employment contract
  • Your last drawn basic salary, not a career average

Excluded from gratuity

  • Housing allowance
  • Transport / car allowance
  • Utilities, furniture, or other fixed allowances
  • Bonuses, commissions, and overtime pay

If your offer letter or WPS salary breakdown lists "basic salary" separately from total compensation, that basic figure is the only number that should go into the gratuity formula — even if it's significantly smaller than your gross monthly pay.

Who Is Eligible for Gratuity in Dubai?

1

Minimum 1 year of continuous service

You must complete at least one full year working for the same employer before any gratuity accrues. There is no partial gratuity below the one-year mark, but every month after that is pro-rated.

2

Private-sector employees, mainland and most free zones

Gratuity under Article 51 applies across all seven emirates and the large majority of free zones. The Dubai International Financial Centre (DIFC) is the main Dubai-based exception — see the DIFC section below.

3

Foreign (expatriate) workers

Article 51 specifically governs end-of-service benefits for foreign workers. UAE and GCC nationals are instead covered under separate pension and social-security legislation (Federal Decree-Law No. 57 of 2023), not the gratuity formula described here.

4

Part-time, flexible, and temporary workers

Eligible on a pro-rated basis once they pass one year, calculated under Article 30 of Cabinet Resolution No. 1 of 2022 by comparing their contracted hours to full-time hours. Temporary contracts under one year carry no gratuity entitlement at all.

5

Dismissal for misconduct does not remove eligibility

Even employees dismissed without notice under Article 44 generally keep their gratuity entitlement. Forfeiture is not automatic — it requires a court ruling on proven, employer-claimed financial loss.

Resignation vs Termination: Does It Change Your Gratuity?

A lot of outdated information still circulates online claiming resignation reduces your gratuity in the UAE. That was true under the law repealed in 2022 — it is not true today.

FactorResignationEmployer terminationMisconduct dismissal (Art. 44)
Minimum service for eligibility1 year1 year1 year (entitlement generally preserved)
Gratuity formula applied21/30-day formula, no reduction21/30-day formula, no reduction21/30-day formula, subject to proven deductions only
Old-law reduction tiers (1/3, 2/3) still apply?No — abolished by FDL 33/2021Never applied to employer-initiated terminationNo
Notice period impact on final settlementEmployer may deduct pay in lieu if notice isn’t servedEmployer must give notice unless Article 44 appliesNo notice required under Article 44
Payment deadline14 days (Article 53)14 days (Article 53)14 days (Article 53)

⚠ A note on notice periods

Skipping your notice period as a resigning employee doesn't reduce your gratuity entitlement, but your employer can deduct an equivalent amount of pay in lieu of the unserved notice from your final settlement — a separate calculation from gratuity itself.

Mainland Dubai Gratuity Rules

If your employer is registered on Dubai mainland (not in a free zone), these are the rules that apply to you.

1

Governing law

Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (effective 2 February 2022), with its executive regulations in Cabinet Resolution No. 1 of 2022, and amendments under Federal Decree-Law No. 9 of 2024.

2

Formula

21 days’ basic salary per year for the first 5 years of service, then 30 days’ basic salary per year after that, capped at 2 years’ total basic pay.

3

Payment deadline

All end-of-service entitlements, including gratuity, must be paid within 14 days of your last working day under Article 53. Late payment exposes the employer to fines and a MOHRE complaint.

4

Optional Alternative Savings Scheme

Some mainland Dubai employers have opted into the voluntary scheme under Cabinet Resolution No. 96 of 2023, contributing monthly into an investment fund instead of holding gratuity as an unfunded liability. If your employer has done this, ask HR whether your benefit now accrues through this scheme rather than a lump sum.

DIFC Gratuity Rules: How DEWS Works Instead

If your employer is based in the Dubai International Financial Centre, almost everything above changes. DIFC runs its own employment law, separate from Federal Decree-Law No. 33 of 2021.

1

DEWS replaced traditional gratuity in February 2020

The DIFC Employee Workplace Savings (DEWS) plan, introduced under DIFC Employment Law Amendment Law No. 4 of 2020, is now the default Qualifying Scheme. Traditional lump-sum gratuity no longer accrues for DIFC employees from that date forward.

2

Contribution rates mirror the federal formula

Employers contribute 5.83% of basic (qualifying) salary monthly for employees with under 5 years of service, rising to 8.33% once they pass 5 years — broadly matching the 21-day and 30-day federal accrual rates, but funded monthly rather than held as a liability.

3

It is a savings account, not a lump-sum formula

Contributions sit in a ring-fenced account, generally managed by an appointed trustee and administrator, and can be invested. The final amount you receive depends on contributions plus (or minus) any investment performance, not a fixed days-of-salary calculation.

4

Pre-2020 service is still protected separately

If you joined DIFC before February 2020, any gratuity you accrued under the old system up to that date is preserved and calculated using the traditional formula. Only service from February 2020 onward runs through DEWS or an approved alternative Qualifying Scheme.

5

UAE and GCC nationals are excluded

DIFC employees who are UAE or GCC nationals are covered by the General Pension and Social Security Authority (GPSSA) instead, though they can opt to make voluntary DEWS contributions.

🧮 Illustrative DEWS contribution

On a basic salary of AED 25,000/month with under 5 years of service, the minimum employer contribution is 5.83% × AED 25,000 = AED 1,457.50 per month, before any investment growth or voluntary top-ups. Over 5 years that's a funded base of roughly AED 87,450 — your actual balance depends on the fund performance and any additional contributions, so check your DEWS portal for the exact figure.

Other Dubai Free Zones: DMCC, JAFZA, DAFZA & Beyond

DIFC is the exception, not the rule. Most Dubai free zones use the same federal gratuity formula as mainland employers.

JurisdictionGoverning frameworkHow it's calculatedWhen you receive it
Mainland DubaiFDL 33/2021 (federal labour law)21/30-day formula on basic salaryLump sum within 14 days of leaving
DIFCDIFC Employment Law + DEWSMonthly employer contributions, 5.83% / 8.33%Withdrawn from savings account on exit
DMCC, JAFZA, DAFZA, Dubai South / DWC, and most other Dubai free zonesFDL 33/2021 (federal labour law)21/30-day formula on basic salaryLump sum within 14 days of leaving
ADGM (Abu Dhabi, for comparison)ADGM Employment RegulationsChoice of traditional gratuity or savings scheme (from April 2025)Depends on employee election

A small number of free zones may run their own approved alternative Qualifying Scheme. If you're unsure which rules apply to you, check your offer letter or ask HR whether your free zone has adopted one, since it would change the calculation shown above.

Worked Examples: Real AED Calculations

Four scenarios covering the situations employees ask about most — resignation, employer termination, the 2-year cap, and partial years.

Resignation after 3 years

Basic salary: AED 8,000/month · Resigned voluntarily after 3 years

  • Years 1–3 fall entirely in the first-five-year tier: 3 × 21 days = 63 days
  • Daily basic rate: AED 8,000 ÷ 30 = AED 266.67
  • Gratuity: 63 × AED 266.67 = AED 16,800

AED 16,800 — paid in full despite resignation, since the current law applies no reduction.

Employer termination after 7 years

Basic salary: AED 15,000/month · Terminated by employer after 7 years

  • First 5 years: 5 × 21 days = 105 days
  • Remaining 2 years: 2 × 30 days = 60 days → total 165 days
  • Daily basic rate: AED 15,000 ÷ 30 = AED 500
  • Gratuity: 165 × AED 500 = AED 82,500

AED 82,500 — well under the 2-year cap of AED 360,000.

Long service hitting the 2-year cap

Basic salary: AED 35,000/month · 30 years of continuous service

  • First 5 years: 5 × 21 days = 105 days
  • Remaining 25 years: 25 × 30 days = 750 days → total 855 days
  • Daily basic rate: AED 35,000 ÷ 30 = AED 1,166.67
  • Uncapped gratuity: 855 × AED 1,166.67 ≈ AED 997,500
  • 2-year cap: AED 35,000 × 24 = AED 840,000

AED 840,000 — the cap applies, since the uncapped figure exceeds two years’ basic pay.

Partial final year

Basic salary: AED 9,000/month · 4 years and 6 months of service

  • Full years 1–4: 4 × 21 days = 84 days
  • Final 6 months, still inside the first-five-year tier: 21 × 0.5 = 10.5 days → total 94.5 days
  • Daily basic rate: AED 9,000 ÷ 30 = AED 300
  • Gratuity: 94.5 × AED 300 = AED 28,350

AED 28,350 — partial years are pro-rated, not rounded down to whole years.

Common Mistakes When Calculating Dubai Gratuity

Most disputed final settlements come down to one of these errors — on either side of the negotiation.

  • ✕Calculating on gross salary (including housing and transport allowances) instead of basic salary only.
  • ✕Assuming resignation still reduces gratuity — that rule was abolished when FDL 33/2021 replaced the 1980 law.
  • ✕Forgetting the 2-year salary cap when estimating gratuity for very long-serving, well-paid employees.
  • ✕Counting unpaid leave days toward the service period, when Article 51 explicitly excludes them.
  • ✕Assuming DIFC employees receive a traditional lump sum, when they are almost always covered by DEWS instead.
  • ✕Using an average salary across the employee’s career rather than the last drawn basic salary.
  • ✕Overlooking that employers can lawfully deduct documented debts (loans, notice-period shortfalls) from the gratuity payout.
  • ✕Missing the 14-day payment deadline or the 2-year claim-filing window, and assuming an unpaid claim is automatically lost when it may not be.

Frequently Asked Questions

How much gratuity will I get in Dubai?▾
Your gratuity equals 21 days of basic salary for each of your first 5 years of service, plus 30 days of basic salary for each year after that, capped at two years total pay. The exact AED figure depends on your basic monthly salary and total length of continuous service — enter both into the calculator above for an instant breakdown.
Is gratuity calculated on basic salary or gross salary in Dubai?▾
Basic salary only. Article 51 of Federal Decree-Law No. 33 of 2021 excludes housing allowance, transport allowance, and any other allowances or bonuses from the gratuity calculation. Only the basic salary figure stated in your MOHRE-registered contract is used.
Does resigning reduce my gratuity in Dubai?▾
No, not under the current law. Federal Decree-Law No. 33 of 2021 removed the resignation reduction tiers that existed under the old 1980 law. An employee who resigns after completing one year of service now receives the same full gratuity as one who is terminated, with no penalty for resigning.
Do DIFC employees in Dubai get the same gratuity as mainland employees?▾
No. Employees in the Dubai International Financial Centre (DIFC) do not receive traditional lump-sum gratuity. Since February 2020, DIFC employers must instead make monthly contributions — 5.83% of basic salary for under 5 years of service, 8.33% for 5 or more — into a funded savings scheme such as DEWS on the employee’s behalf.
Is there a cap on gratuity in Dubai?▾
Yes. Under Article 51, total gratuity cannot exceed the equivalent of two years’ total basic salary, no matter how long you have worked for the employer. This cap typically only affects very long-serving, higher-salaried employees.
What happens to my gratuity if I am dismissed for misconduct?▾
Dismissal under Article 44 for serious misconduct does not automatically forfeit your gratuity under the current law. You generally retain your entitlement, subject to lawful deductions for any proven financial loss your employer can demonstrate in court.
Do free zone employees in Dubai get the same gratuity as mainland employees?▾
Most Dubai free zones — including DMCC, JAFZA, DAFZA, and Dubai World Central — follow the same Federal Decree-Law No. 33 of 2021 formula as mainland Dubai, unless the free zone operates its own approved alternative scheme. The Dubai International Financial Centre (DIFC) is the main exception, since it has its own separate employment law and uses DEWS instead.
How long do I have to claim unpaid gratuity in Dubai?▾
Two years from the date your gratuity became due, under Article 54 of Federal Decree-Law No. 33 of 2021 as amended by Federal Decree-Law No. 9 of 2024. This limitation period was extended from the original one year, so check the date your employment ended before assuming a claim is time-barred.
What if my employer pays my gratuity late?▾
Article 53 requires employers to pay all end-of-service entitlements within 14 days of your last working day. If that deadline passes, you can send a written demand letter and, if unresolved, file a free complaint with MOHRE, which can issue a directly enforceable decision for claims up to AED 50,000.
Are part-time and flexible workers in Dubai entitled to gratuity?▾
Yes, on a pro-rated basis. Under Article 30 of Cabinet Resolution No. 1 of 2022, part-time or flexible-work entitlement is calculated by dividing your contracted working hours by full-time hours, then applying that percentage to the full-time gratuity value for the same service period.
Can my Dubai employer pay gratuity into a savings scheme instead of a lump sum?▾
Yes, if they have opted into the voluntary Alternative End-of-Service Benefits Savings Scheme under Cabinet Resolution No. 96 of 2023. Participating mainland employers contribute monthly (5.83% or 8.33% of basic salary, depending on service length) into a regulated investment fund instead of accruing an unfunded lump-sum liability. Any gratuity you accrued before enrolment is still protected and paid under the standard formula.
Do I need to use basic salary as of my last month or an average over my career?▾
Your last drawn basic salary at the time your employment ends, not an average. This is one of the most common points of dispute in final settlements, since employees sometimes assume an earlier, higher base salary applies if it changed shortly before they left.

Methodology: How This Calculator Works

Transparency on the inputs and assumptions behind the number you see above.

This calculator applies the formula in Article 51 of Federal Decree-Law No. 33 of 2021 and its executive regulations under Cabinet Resolution No. 1 of 2022: 21 days of basic salary per year for the first 5 years of service, 30 days per year after that, with partial years pro-rated and the total capped at 2 years' basic salary.

It takes two inputs — your basic monthly salary and your service dates — and does not factor in allowances, bonuses, unpaid leave deductions, employer-side debt deductions, or DEWS-style investment returns, since those depend on documentation and fund performance specific to your situation. For DIFC employees, the calculator illustrates the formula your gratuity would have followed under the federal system for comparison purposes; your actual benefit runs through DEWS or your employer's approved Qualifying Scheme instead.

This tool produces an estimate for planning purposes and is not a substitute for your employer's official final settlement calculation, your WPS records, or confirmation from MOHRE.

About This Guide

Last updated: 29 June 2026

Reviewed by: OfficeDraft Legal Team

Jurisdiction: United Arab Emirates — Dubai

Primary legal basis: Federal Decree-Law No. 33 of 2021, as amended by Federal Decree-Law No. 9 of 2024

🔄

Updated 2026

Reflects the current Article 51/53/54 formula and limitation period, DEWS contribution rates, and the 2023 voluntary Alternative Savings Scheme.

🏙️

Dubai specific

Distinguishes mainland Dubai, the DIFC, and other Dubai free zones explicitly, rather than treating Dubai as a single uniform jurisdiction.

⚠️

Not legal or financial advice

This guide provides general information for non-lawyers. For contested calculations, free zone exceptions, or DEWS withdrawal disputes, consult a UAE-licensed employment lawyer or the relevant scheme administrator.

Got Your Number — Now What If It's Unpaid?

If your employer has missed the 14-day deadline, the next step is a formal written demand citing Article 51 and Article 53 before you escalate to MOHRE.

Generate a Dubai Demand Letter →

Calculates your exact entitlement · Cites the correct legal articles · MOHRE escalation language included