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UAE gratuity calculator — to the day

Enter a basic salary and two dates. This calculates end-of-service gratuity under Federal Decree-Law 33 of 2021 — 21 days per year for the first five, 30 days after, capped at two years' wages — and shows the full working so you can check it.

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  • Articles 51–53
  • 30-day month basis
  • Last drawn basic
  • 2-year cap applied

Work out the gratuity

Basic only — exclude housing, transport and allowances.
Excluded from continuous service.
How is the employment ending?

The rule this applies

  • At least 1 year of continuous service required
  • 21 days' basic wage per year for years 1–5
  • 30 days' basic wage per year beyond year 5
  • Total capped at 2 years' wages
  • Last drawn basic wage, 30-day month
  • Part-years pro-rated to the day
  • Leave without pay excluded from service
  • Forfeitable under Article 44 gross misconduct

Gratuity is one line of a final settlement. See how eHRMS builds the whole statement — leave encashment, notice pay, loans and unreturned assets netted, with the 14-day deadline tracked.

Not legal advice. The figures and rules on this page reflect the statutory references built into eHRMS at the time of writing, and are provided for general guidance. Entitlements change and individual contracts, free zones, DIFC and ADGM differ — always confirm current requirements with MOHRE, your free zone authority or your labour counsel.

FROM CALCULATOR TO PAYROLL

Why doing this by hand costs more than it looks

To the day

not to the nearest year

Rounding a part-year either way is the most common source of settlement disputes. eHRMS computes service in days from the actual record.

Every line sourced

to its legal article

When an employee questions a figure, you show the rule behind it rather than re-deriving the sum under pressure.

14 days

to pay, by law

Article 53 sets the deadline from the end of the relationship. A scheduled job chases every pending settlement towards it.

Accrued monthly

so finance is never surprised

Gratuity liability posts each month per employee, which keeps end-of-service off the list of shock expenses.

FAQ

UAE gratuity — the questions we get asked

Under Federal Decree-Law 33 of 2021, an employee with at least one year of continuous service earns 21 days' basic wage for each of the first five years, and 30 days' basic wage for each year beyond five. The total is capped at two years' wages. Calculations use the last drawn basic wage — not the gross package — over a 30-day month.

No. Under the current law the entitlement is the same whether the employee resigns or is terminated, provided they completed at least one year of continuous service. The old one-third / two-thirds reductions for resignation no longer apply. The exception is Article 44 — dismissal for gross misconduct — where gratuity can be forfeited.

On the last drawn basic wage only. Housing, transport and other allowances are excluded. This is why the salary structure matters: a common UAE structure is basic plus 25% housing plus 10% transport, and gratuity computes against the basic component alone.

No gratuity is payable below one year of continuous service. Part-years beyond the first year are pro-rated to the day.

No — periods of leave without pay are excluded from the continuous-service calculation, which is why this calculator asks for them separately.

DIFC replaced lump-sum gratuity with DEWS — the Employee Workplace Savings scheme — requiring monthly employer contributions of 5.83% of basic wage for employees with up to five years' service and 8.33% beyond. If your entity is in DIFC, this calculator does not apply; eHRMS applies the DEWS regime automatically per entity.

Within 14 days of the end of the employment relationship, per Article 53. eHRMS runs a scheduled job that tracks that deadline for every pending settlement.

Related reading

Stop calculating settlements by hand

eHRMS computes gratuity, leave encashment, notice pay and deductions from the actual employment record, and produces a signed settlement statement. Bring a past settlement to the demo and we'll recalculate it live.

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Prefer to talk? Call +971 4 874 1144 or email info@globosoft.ae