Private Sector Gratuity Calculator — UAE End-of-Service Pay

Instant AED estimate · Article 51 formula · Mainland and free zone employees, all emirates

Free calculationArticle 51 formulaDemand letter includedAll emirates coveredUpdated for 2026

Employment details

Your employment dates and the reason your employment ended.

Most UAE employment after 2022 is unlimited term under FDL 33/2021.

This private sector gratuity calculator gives UAE employees an instant AED figure for what they are owed at the end of their job, using the federal formula that applies to almost every private employer in the country. Enter your basic salary and employment dates above for a result before reading further.

Most search queries for this topic do not mention an emirate, because the formula is the same in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. The two exceptions, DIFC in Dubai and ADGM in Abu Dhabi, are covered separately below. This guide explains eligibility, the exact formula, worked examples, common mistakes, and what to do if your employer does not pay on time.

How the Calculator Works

The tool above has four steps. First, enter your employment start date, last working day, and the reason your employment ended. These dates alone tell you whether you are eligible. Second, enter your basic monthly salary; a live gratuity estimate with a full breakdown appears on this step, using the 21/30-day formula and the statutory two-year cap. Third, enter your name and your employer's details. Fourth, preview the finished demand letter, which cites Article 51 and the MOHRE complaint procedure, and download it.

The calculation on step two is free and needs no signup. You only need the demand letter if your employer has missed the 14-day payment deadline.

Who This Calculator Is For

✅ Applies to you if you are:

  • • A private-sector employee anywhere in the UAE
  • • Employed on mainland or in a standard free zone
  • • On a contract with at least 1 year of service
  • • A non-UAE-national (expatriate) worker
  • • Resigning, retiring, or being terminated

❌ Does not apply if you are:

  • • A UAE national (covered by pension and social security law instead)
  • • Under 1 year of continuous service
  • • Employed in DIFC or ADGM (separate gratuity regimes)
  • • Enrolled in an alternative end-of-service savings scheme for that period
  • • A domestic worker (covered by Federal Decree-Law No. 9 of 2022)

The Law That Governs Private Sector Gratuity

Private-sector employment in the UAE is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, in effect since 2 February 2022. The relevant provisions are:

Article 51

Sets the gratuity formula: 21 days' basic wage per year for the first 5 years, 30 days per year after that, for anyone with at least 1 year of continuous service.

Article 53

Requires employers to pay all end-of-service entitlements within 14 days of the contract end date, and confirms the 24-month cap on total gratuity.

Article 44

Governs summary dismissal for serious misconduct. Accrued gratuity is generally retained even in Article 44 dismissals, unlike under the 1980 law.

FDL No. 9 of 2024

Lets MOHRE issue directly enforceable payment orders for claims up to AED 50,000, including gratuity disputes, without a court filing.

The Gratuity Formula

The calculation has three steps. Once you know your basic salary and total years of service, you can reproduce what the calculator above shows.

Step 1 — Daily wage

Daily wage = Basic monthly salary ÷ 30

Step 2 — Accrued days

First 5 years: 21 days × years worked (up to 5)

Years beyond 5: 30 days × additional years worked

Step 3 — Apply the cap

Gratuity = Accrued days × Daily wage, capped at 24 × Basic monthly salary

Part-years are paid proportionally. Six months into your third year contributes roughly half of that year's days, once you have already passed the one-year eligibility threshold.

Worked Examples

These figures use the exact formula the calculator above applies, across a range of common salaries and service lengths.

Basic salaryYears servedDays accruedGratuity (AED)
AED 3,000121.0AED 2,100
AED 5,000242.0AED 7,000
AED 7,000484.0AED 19,600
AED 8,0005105.0AED 28,000
AED 10,0006135.0AED 45,000
AED 12,0008195.0AED 78,000
AED 15,00010255.0AED 127,500
AED 20,00015405.0AED 270,000
The cap in practice: An employee on a basic salary of AED 10,000 with 28 years of service would accrue 795 gratuity days, worth AED 265,000 uncapped. The statutory cap limits total gratuity to 24 months' basic salary, so the actual payable amount is AED 240,000.

Mainland vs Free Zone: Does It Change Your Gratuity?

For almost every free zone in the UAE, no. Free zones such as JAFZA, DMCC, SAIF Zone, RAKEZ, and Hamriyah Free Zone Authority are all regulated through MOHRE under the standard federal Labour Law, so employees there use the same Article 51 formula as mainland employees.

The two exceptions are DIFC in Dubai and ADGM in Abu Dhabi. Both run their own financial-centre employment frameworks, DEWS in DIFC and the ADGM Employment Regulations in ADGM, which set different end-of-service contribution rules. If your employment contract is registered with DIFC or ADGM rather than MOHRE, use the DIFC gratuity calculator instead of this one.

Resignation vs Termination

Under the 1980 labour law, resigning before five years of service could cut your gratuity to as little as one-third of the full amount. That penalty ended when Federal Decree-Law No. 33 of 2021 took effect in February 2022.

🚪 Resignation

Full gratuity is payable using the standard 21/30-day formula, once you have completed at least 1 year of continuous service. No reduction applies, regardless of notice given.

📋 Termination

Full gratuity is payable using the identical formula. Even summary dismissal under Article 44 for serious misconduct generally preserves accrued gratuity, though separate damages claims remain possible.

For a longer breakdown, see Gratuity After Resignation or Gratuity After Termination.

Limited vs Unlimited Contracts

Before February 2022, UAE contracts came in two types, limited (fixed-term) and unlimited (open-ended), and gratuity calculations differed between them, especially on early resignation. Federal Decree-Law No. 33 of 2021 removed this distinction. Every private-sector contract in the UAE is now a limited contract, with a maximum term of three years, renewable.

Contract typeBefore Feb 2022Since Feb 2022
Unlimited contractFull gratuity after 5 years; reduced before that on resignationNo longer issued; existing ones now follow Article 51 rules
Limited contractResignation before contract end could forfeit gratuity entirelyThe only contract type; same 21/30-day formula for everyone

Common Mistakes When Calculating Private Sector Gratuity

💰

Using gross salary instead of basic salary

Housing allowance, transport allowance, and other benefits are excluded. Only the basic wage stated in your MOHRE-registered contract counts.

📆

Counting unpaid leave as service time

Unpaid leave is deducted from the service period used to calculate gratuity. Paid sick leave and maternity leave still count.

🔢

Applying 30 days per year from the first year

The 30-day rate applies only to years beyond the first five. The first five years accrue at 21 days per year regardless of total tenure.

⚖️

Assuming resignation cuts your gratuity

The reduced-gratuity penalty for early resignation was abolished in February 2022. Resignation and termination now receive the same treatment under Article 51.

🧮

Forgetting the two-year cap

Total gratuity cannot exceed 24 months of basic salary, however many years you worked. Long-tenured employees should check whether their total has hit this ceiling.

📜

Applying old unlimited-contract rules to a current job

Every UAE private-sector contract signed or renewed after February 2022 is a limited contract by law. The pre-2022 unlimited-contract rules no longer apply to any active employment.

🏢

Assuming free zone status changes the formula

Most UAE free zones follow the same federal Labour Law as mainland companies. Only DIFC (Dubai) and ADGM (Abu Dhabi) run separate gratuity regimes, DEWS and the ADGM Employment Regulations.

📅

Ignoring the 14-day payment deadline

Article 53 requires employers to pay all end-of-service entitlements within 14 days of the last working day. Employees often assume there is no fixed deadline and let months pass before acting.

👤

Assuming a domestic worker uses this formula

Domestic workers are covered by a separate law, Federal Decree-Law No. 9 of 2022, with its own gratuity rules. This calculator applies to standard private-sector employees only.

🇦🇪

Applying this formula to a UAE national

UAE nationals are covered by pension and social security legislation, not Article 51 gratuity. This calculation applies to expatriate private-sector employees.

If Your Employer Does Not Pay Your Gratuity

Employers have 14 days from your last working day to pay all end-of-service entitlements under Article 53. Once that deadline passes, a formal demand letter that cites the law is the standard first step before escalating to MOHRE.

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End of Service Gratuity Demand Letter

Article 51-cited letter with your gratuity calculated automatically

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End of Service Demand Letter Generator

General end-of-service entitlement demand letter

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Gratuity Demand Letter — Abu Dhabi

Abu Dhabi-specific gratuity demand letter and calculator

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Gratuity Demand Letter — Dubai

Dubai-specific gratuity demand letter and calculator

⚠️
Employer Not Paying Gratuity

What to do, and how to escalate, when gratuity is withheld

🔁
Gratuity After Resignation

How resignation affects, and does not affect, your entitlement

📄
Gratuity After Termination

Entitlement rules when your employer ends the contract

🛂
Gratuity After Visa Cancellation

What happens to your claim once your work visa is cancelled

🔔
Gratuity Not Paid After Resignation

Escalation steps when payment is late after you resign

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MOHRE Complaint Letter Generator

Formal MOHRE complaint if gratuity is not paid within 14 days

Frequently Asked Questions — Private Sector Gratuity

What is private sector gratuity in the UAE?
Private sector gratuity is an end-of-service payment owed to expatriate employees who complete at least one year of continuous service with a UAE private employer. It is set out in Article 51 of Federal Decree-Law No. 33 of 2021 and paid regardless of whether the employee resigned or was terminated.
How is private sector gratuity calculated?
You get 21 days of basic salary for each of the first five years of service, and 30 days of basic salary for each year after that. The total is capped at 24 months of basic salary. The calculation uses your basic monthly salary only, not your gross package.
Am I eligible if I resign?
Yes. Since Federal Decree-Law No. 33 of 2021 took effect in February 2022, resignation and termination receive identical gratuity treatment, as long as you completed at least one year of continuous service. The old law reduced gratuity for early resignation; that penalty no longer applies.
What is the minimum service period for gratuity?
One full year of continuous service with the same employer. Employees who leave before 12 months, by resignation or termination, are not entitled to statutory gratuity, though they remain entitled to unpaid wages and accrued annual leave.
Does gratuity apply to free zone employees?
For most free zones, yes, under the same federal formula as mainland employees. The exceptions are DIFC in Dubai and ADGM in Abu Dhabi, which run their own separate employment frameworks (DEWS and the ADGM Employment Regulations) instead of Article 51.
What salary counts toward gratuity?
Only your basic salary, the fixed monthly wage stated in your MOHRE-registered contract. Housing allowance, transport allowance, bonuses, commissions, and overtime are excluded, regardless of size.
Is there a maximum gratuity amount?
Yes. Total gratuity cannot exceed 24 months' basic salary, no matter how long you worked. Employees with roughly 25 years of service or more are the ones most likely to reach this cap.
How long does my employer have to pay gratuity?
Fourteen days from your last working day, under Article 53 of the Labour Law. If your employer misses that deadline, you can file a complaint with MOHRE.
What happens if my employer does not pay within 14 days?
You can file a complaint with MOHRE. Under Federal Decree-Law No. 9 of 2024, MOHRE can issue a directly enforceable payment order for claims up to AED 50,000, including gratuity, without you needing to go to court first.
What is the difference between a limited and unlimited contract now?
There is no longer a practical difference for new gratuity calculations. Every private-sector contract in the UAE became a limited (fixed-term) contract, capped at three years and renewable, once Federal Decree-Law No. 33 of 2021 took effect. Older references to "unlimited" contracts describe a category that no longer exists for active employment.
Do part-time employees get gratuity?
Yes, on a pro-rata basis. Under the Executive Regulations issued with Federal Decree-Law No. 33 of 2021, part-time and flexible workers accrue gratuity in proportion to hours worked compared with a full-time role, once they meet the one-year minimum.
Am I entitled to gratuity if I am dismissed for misconduct?
Generally yes, if you completed one year of service. Under the current law, summary dismissal under Article 44 for serious misconduct no longer automatically forfeits accrued gratuity, unlike under the old 1980 law. Employers can still separately pursue proven damages.
Are UAE nationals entitled to private sector gratuity?
No. UAE nationals are covered by federal pension and social security legislation, not Article 51 gratuity, which applies to expatriate private-sector employees.
Does unpaid leave affect my gratuity?
Yes. Days spent on unpaid leave are excluded from the service period used to calculate gratuity. Paid sick leave and maternity leave are not affected and still count.
Is gratuity taxable in the UAE?
The UAE has no personal income tax, so gratuity payments are not taxed domestically. If you are a tax resident of another country, check that country's rules on foreign end-of-service payments.
Can my employer pay gratuity into a savings scheme instead?
Some employers enrol staff in an alternative end-of-service savings scheme in place of the standard Article 51 formula, with employer contributions invested on the employee's behalf. If you are enrolled in such a scheme, your entitlement follows the scheme's terms for the enrolled period rather than this calculator's formula.
Does gratuity apply to remote employees working for a UAE company?
It depends on where your contract is registered and which labour law governs it. Employees on a MOHRE-registered UAE contract are generally covered by Article 51 regardless of where they physically work; check your specific contract terms.
What if my basic salary changed during my employment?
UAE gratuity practice generally uses your final basic salary at the end of employment to calculate the full entitlement, not a blended average across your service. Confirm this against your MOHRE-registered contract if your salary changed significantly.
Can I claim gratuity if my company closes down?
Yes. Company closure does not remove your right to accrued gratuity. You can pursue the claim through MOHRE or, in liquidation cases, through the relevant court or insolvency process, depending on the company's legal status at closure.
What documents do I need to claim gratuity?
Your employment contract, salary certificate or payslips showing basic salary, and proof of your last working day, such as a termination letter or accepted resignation. A demand letter citing Article 51 and the calculated amount is the standard next step if payment is late.
Is there a difference between gratuity and end-of-service benefits?
No. "Gratuity" and "end-of-service benefits" (EOSB) refer to the same payment under Article 51. Both terms are used interchangeably in the UAE.

Emirate-Specific Calculators

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UAE Gratuity Calculator

General end-of-service calculator for any emirate

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Dubai Gratuity Calculator

Same Article 51 formula, Dubai-specific context

🕌
Abu Dhabi Gratuity Calculator

Mainland Abu Dhabi and ADGM considerations

🌴
Sharjah Gratuity Calculator

Mainland Sharjah, SAIF Zone and Hamriyah Free Zone

🏗️
Ajman Gratuity Calculator

Ajman-specific gratuity calculation and context

🏦
DIFC Gratuity Calculator

For the one major exception to the federal formula

📨
Gratuity Calculator + Demand Letter

Calculate your entitlement, then generate a formal demand letter

📋
Gratuity Law Explained

Full breakdown of Article 51, 52 and 53 obligations

Calculate Your Gratuity in Seconds

Enter your basic salary and employment dates in the calculator above for an instant, itemized breakdown. If your employer has missed the 14-day payment deadline, use one of the demand letter tools above to escalate formally.

Back to Calculator ↑

Methodology: This calculator applies the gratuity formula set out in Article 51 of Federal Decree-Law No. 33 of 2021, as published on the official UAE Government portal, together with the 14-day payment rule under Article 53 and MOHRE enforcement provisions under Federal Decree-Law No. 9 of 2024. For company-specific guidance or complaint filing, refer to the Ministry of Human Resources and Emiratisation (MOHRE).

Disclaimer: This tool gives an estimate for general information only and is not legal advice. It does not account for lawful employer deductions, unpaid leave adjustments, alternative savings scheme enrolment, or contract-specific terms. Confirm your exact entitlement against your MOHRE-registered contract or a qualified labour law professional.

Last updated: July 2026 · Reviewed by: OfficeDraft Payroll Research Team