UAE private-sector decision tool
UAE gratuity calculator
An eligible foreign full-time employee generally receives 21 days of last basic wage for each year in the first five years, then 30 days for each additional year. Unpaid absence is excluded and the total is capped at two years of wage.
Illustrative estimate
AED 53,985
6.00 adjusted years; 2,191 service days.
- First five years
- AED 42,000
- Years after five
- AED 11,985
- Two-year wage cap
- AED 288,000
Formula, responsibilities and limits
| Step | Illustrative treatment |
|---|---|
| Daily basic wage | Last monthly basic salary ÷ 30 |
| First five years | 21 days × adjusted service years, maximum five |
| After five years | 30 days × each additional adjusted year |
| Overall cap | Lower of the calculated amount or 24 months of basic wage |
Service is estimated from calendar days and expressed as a decimal year. The employer must reconcile exact dates, unpaid absence, employment status, contractual terms, prior payments and any applicable scheme. This tool does not determine entitlement, resolve disputes or provide legal advice.
Before relying on the estimate
- Confirm the worker is a foreign full-time employee under the general UAE private-sector regime.
- Reconcile the last basic salary to the contract and payroll.
- Document unpaid absence and any prior gratuity settlement.
- Check whether DIFC, ADGM, pension or an alternative savings scheme applies.
Official sources
Reviewed 4 September 2026. See the UAE Government end-of-service benefits guidance and the Ministry of Human Resources and Emiratisation employment law text. Rules and individual facts can change.
Frequently asked questions
Is UAE gratuity calculated on basic salary or total salary?
For an eligible foreign full-time private-sector worker under the general UAE Labour Law, the end-of-service gratuity is calculated using the last basic salary, excluding allowances and benefits in kind.
Is gratuity payable for less than one year of service?
Under the general current-law calculation, a worker must complete at least one year of continuous service. Unpaid absence is excluded when measuring the service period.
What happens after five years of service?
The general formula uses 21 days of basic wage for each year in the first five years and 30 days for each additional year, subject to a total cap of two years of wage.
Does this calculator cover DIFC, ADGM or an alternative savings scheme?
No. DIFC, ADGM, UAE-national pension arrangements and employer participation in an approved alternative end-of-service savings scheme require separate rules and evidence.