How to use this calculator
- Enter your last monthly basic salary in AED, exactly as shown in your MOHRE-registered contract.
- Enter your completed years of service, plus any extra months — partial years are paid in proportion.
- Click Calculate. The result shows the daily wage, each band separately, the cap check and the final gratuity.
Formula — how it is calculated
Article 51 of Federal Decree-Law No. 33 of 2021 sets the formula for private-sector employees. First, your daily wage is your monthly basic salary divided by 30. For each of your first five years of service you earn 21 days of that daily wage. For every year after the fifth you earn 30 days. Part years count in proportion — for example, six extra months in the first band earn half of 21 days.
Three conditions matter. You must complete at least one full year of continuous service before any gratuity is due. The total gratuity can never exceed two years of your basic wage (24 monthly basic salaries) — this cap only bites after very long service. And since the February 2022 reform, resignation and termination are calculated the same way; how your contract ended no longer reduces the formula, although summary dismissal for the serious misconduct listed in Article 44 and unpaid-leave days can still affect a real settlement.
Allowances — housing, transport, utilities, bonuses, commission and overtime — are excluded. Only the basic wage counts. Employees in DIFC are covered by the DEWS savings scheme instead of this formula, and ADGM applies its own employment regulations, so this calculator is for mainland and most free-zone private-sector contracts.
Worked example
Sara's basic salary is AED 10,000 a month and she has completed 7 years of service. Her daily wage is 10,000 ÷ 30 = AED 333.33. The first five years earn 5 × 21 = 105 days. The two years after that earn 2 × 30 = 60 days. That is 165 days in total, and 165 × 333.33 = AED 55,000. The cap is 24 × 10,000 = AED 240,000, so it does not reduce her amount. Her estimated gratuity is AED 55,000 — exactly what this calculator shows with the default values above.
Frequently asked questions
Is gratuity calculated on basic salary or total salary in the UAE?
On basic salary only. Article 51 uses the last basic wage. Housing, transport, bonuses and other allowances are not included, even though they may be most of your package.
Do I get gratuity if I resign in the UAE?
Yes. Since the 2022 labour law reform, resignation and termination use the same formula, provided you have completed at least one year of service and served your notice period.
What is the maximum gratuity in the UAE?
The total cannot exceed two years of basic wage — 24 times your monthly basic salary — however long you have worked.
I have worked less than one year. Do I get anything?
Under Article 51, no gratuity is due before one full year of continuous service. This calculator therefore returns zero for service under one year.
Does this apply to DIFC or ADGM employees?
No. DIFC replaced gratuity with the DEWS workplace savings scheme in 2020, and ADGM has its own regulations. This calculator covers mainland UAE and most free zones under the federal law.
When must gratuity be paid?
Article 53 requires end-of-service entitlements to be settled within 14 days of the contract ending.