End-of-Service Gratuity Calculator
Work out your UAE end-of-service gratuity under the 2022 Labour Law — 21 days' basic pay a year for the first five years, 30 days a year after that, capped at two years' basic pay. Free, no sign-up.
Your Details
The basic figure on your contract, not the total package — housing, transport and other allowances are excluded.
Continuous service with the same employer. Under one year means no gratuity. Unpaid leave does not count.
Your Gratuity
Estimated Gratuity
AED 39,945
135 days of basic pay · about 4.4 months' basic
💬 In Plain Words
On a basic salary of AED 9,000 a month, your daily basic pay is AED 296. After 6 years that gives 135 days of gratuity — about AED 39,945, or roughly 4.4 months' basic pay.
The Calculation
Estimate for educational purposes, based on the federal Labour Law (Federal Decree-Law No. 33 of 2021). It does not model free-zone schemes (DIFC DEWS, ADGM), the alternative end-of-service savings scheme, domestic-worker rules, forfeiture for gross misconduct, or amounts owed for unpaid leave. Your employment contract and any free-zone regulations govern the final figure.
How End-of-Service Gratuity Works in the UAE
👋 Simple Explanation
There is no state pension for expatriate workers in the UAE. Instead, when you leave a job (after at least one year), your employer pays a one-off end-of-service gratuity based on your last basic salary: 21 days' basic pay for each of the first five years, then 30 days' basic pay for each year after that, all capped at two years' basic pay.
The split between basic and allowances in your package matters: a contract that is mostly allowances produces a small gratuity. Since 2022 the gratuity is the same whether you resign or are terminated. Some employers, and the DIFC and ADGM free zones, run funded savings schemes instead, and there is a voluntary federal alternative end-of-service savings scheme where the accrual is invested rather than held as a promise.
Why You Need to Save on Top
The gratuity is real money, but it is not a retirement income — for many people it works out to a few months' salary after years of work, and it is often spent on the move home or the gap between jobs. Because there is no expat state pension, your retirement plan is what you build yourself: a low-cost global index fund, property, a personal pension, or your employer's savings scheme. Use our retirement calculator to project that, and treat the gratuity as a bonus on top.
Frequently Asked Questions
- How is UAE end-of-service gratuity calculated?
- On your last basic salary (allowances are excluded). For the first five years of service you get 21 days' basic pay per year; for each year beyond five you get 30 days' basic pay per year. The total is capped at two years' basic pay. Partial years count pro-rata, and you must have completed at least one continuous year.
- Do I get gratuity if I resign?
- Yes. Under the Labour Law in force since February 2022, the same 21/30-day formula applies whether you resign or are terminated, as long as you completed at least one year. The old sliding scale that reduced the gratuity for resignation before five years was removed. Gratuity can be forfeited only for a dismissal for gross misconduct under the specific legal grounds.
- Is gratuity based on basic salary or total salary?
- Basic salary only — the figure on your contract before housing, transport and other allowances. This is why the split between basic and allowances in your package matters: a lower basic means a smaller gratuity.