UAE Gratuity Calculator
Updated on 20 Oct 2026 · Checked by Aotob
After 7.5 years on AED 12,000 basic a month, your gratuity is about AED 72,000.
That is 21 days of basic pay for each of the first five years and 30 days for each year after, under the UAE Labour Law (Federal Decree-Law 33 of 2021). Allowances such as housing and transport are not included.
End-of-service gratuity
AED 72,000
That is 6 months of basic salary. It is the same whether you resign or are let go.
Show the working
Daily wage = 12,000 ÷ 30 = 400.00
First 5 years = 5 × 21 × 400.00 = 42,000.00
After 5 years = 2.5 × 30 × 400.00 = 30,000.00
Gratuity = 72,000.00
Gratuity by years of service
| Years | Gratuity | Months of basic pay |
|---|---|---|
| 1 | 8,400 | 0.7 |
| 3 | 25,200 | 2.1 |
| 5 | 42,000 | 3.5 |
| 7 | 66,000 | 5.5 |
| 10 | 102,000 | 8.5 |
| 15 | 162,000 | 13.5 |
| 20 | 222,000 | 18.5 |
Questions people ask
How is gratuity calculated in the UAE?
You get 21 days of basic pay for each of your first five years, and 30 days for each year after that. On AED 12,000 basic that is AED 42,000 after five years and AED 102,000 after ten.
Do I lose gratuity if I resign?
No. Under the 2021 law, employees on today’s fixed-term contracts get the full gratuity whether they resign or are dismissed, as long as they have worked at least one year. Gross misconduct dismissals can be an exception.
Is gratuity based on basic or full salary?
Basic salary only, as written in your contract. Housing, transport and other allowances are not included. Unpaid leave days do not count as service.
Updated 20 Oct 2026Source: UAE Labour Law, Federal Decree-Law No. 33 of 2021, Article 51 (MOHRE)Checked by AotobAn estimate, not legal or financial adviceReport an issue