UAE Gratuity and Final Settlement Calculator
Estimate your end-of-service gratuity, or your full final settlement with leave salary and notice pay
Last checked: 9 October 2026, against Federal Decree-Law No. 33 of 2021 on the regulation of labour relations.
Use the gratuity calculator above to estimate your end-of-service benefit in the UAE. Choose Gratuity only for the gratuity amount, or Final settlement to add leave salary for unused annual leave, notice pay, unpaid salary and any amount you owe your employer. The calculator follows the rules for private-sector employees on the UAE mainland and in most free zones.
Gratuity examples for AED 5,000 basic salary
These figures use a daily wage of AED 166.67 (AED 5,000 ÷ 30). They assume no unpaid leave.
| Years of service | Days of basic wage | Gratuity |
|---|---|---|
| Under 1 year | 0 | AED 0 |
| 1 year | 21 | AED 3,500 |
| 3 years | 63 | AED 10,500 |
| 5 years | 105 | AED 17,500 |
| 10 years | 255 (105 + 150) | AED 42,500 |
| 20 years | 555 (105 + 450) | AED 92,500 |
| 30 years | 855, capped at 720 | AED 120,000 (2-year cap) |
Final settlement example
Basic salary AED 5,000, total salary AED 8,000, 3 years of service, 15 unused leave days, and an employer who ended the contract without letting the employee work a 30-day notice period:
| Gratuity: 166.67 × 21 × 3 | AED 10,500 |
| Leave salary: 166.67 × 15 days (basic) | AED 2,500 |
| Notice pay: 266.67 × 30 days (total salary) | AED 8,000 |
| Final settlement | AED 21,000 |
How to calculate gratuity in the UAE
Article 51 of Federal Decree-Law No. 33 of 2021 sets the formula for full-time foreign employees in the private sector:
- 21 days of basic wage for each of the first five years of service.
- 30 days of basic wage for each year after five years.
- Part years count pro rata, once you have completed one year of continuous service.
- Unpaid absence does not count as service.
- The total cannot exceed two years’ wage.
Daily wage = monthly basic salary ÷ 30. So the formula is:
Gratuity = (basic salary ÷ 30) × 21 × years, for up to 5 years, plus (basic salary ÷ 30) × 30 × each year after that.
Example for 7 years on AED 10,000 basic: daily wage AED 333.33. First 5 years: 333.33 × 21 × 5 = AED 35,000. Next 2 years: 333.33 × 30 × 2 = AED 20,000. Total gratuity: AED 55,000.
What counts as basic salary
Gratuity is based on your last basic salary only. Housing, transport, phone and other allowances are not included. If your contract shows a total package of AED 15,000 with a basic salary of AED 8,000, your gratuity is calculated on AED 8,000. Check the basic salary on your MOHRE contract or your payslip, and see our guide to reading a UAE payslip if the breakdown is unclear.
Final settlement in the UAE: what it includes
Your final settlement is everything your employer owes you when the contract ends. It usually includes:
- End-of-service gratuity, calculated as above.
- Leave salary for unused annual leave. Article 29 says leave you have not taken is paid on your basic wage when you leave. See our UAE annual leave guide.
- Notice pay, if the employer ended the contract without letting you work the notice period. This is paid at your full salary for the notice days not worked. See termination without notice and resignation notice periods.
- Unpaid salary for days worked in your last month.
- Less any lawful deductions, such as an unpaid company loan. See salary deduction rules.
Employers must pay end-of-service dues within 14 days of the contract ending. If they do not, you can file a complaint with MOHRE. Our guide to MOHRE salary complaints explains how.
Who is entitled to gratuity in the UAE
- Entitled: full-time foreign employees in the private sector with at least one year of continuous service, whether they resign or are terminated.
- Resignation: under the current law, resigning does not reduce your gratuity. The old reductions for resigning after 1 to 5 years no longer apply.
- Dismissal for misconduct: under the current law, an employer cannot cancel your gratuity because you were dismissed without notice. This changed from the old law, where dismissal under Article 120 could remove it.
- Not entitled: employees with less than one year of service.
- UAE and GCC nationals are usually covered by pension schemes instead of gratuity.
- DIFC and ADGM have their own employment laws. Most DIFC employers pay into the DEWS savings plan instead of gratuity.
Gratuity calculator Dubai, Abu Dhabi and Sharjah
The same federal formula applies across all seven emirates for private-sector employers registered with MOHRE, including most free zones. A gratuity calculator for Dubai, Abu Dhabi or Sharjah therefore gives the same result. The exceptions are the DIFC in Dubai and ADGM in Abu Dhabi, which have their own rules, and government employees, who follow federal or emirate HR laws.
Free zones: DDA, JAFZA, DMCC, DIFC and ADGM
If you work in a DDA free zone such as Dubai Internet City, Dubai Media City or Dubai Knowledge Park, this calculator gives you the right figure. The DDA gratuity calculator is based on the minimum terms of the UAE Labour Law (Federal Decree-Law No. 33 of 2021) and asks for the same three things: your first working day, your last working day and your basic salary. JAFZA and DMCC staff are in the same position. PwC notes that DIFC is the only free zone that replaced gratuity with a savings plan for private-sector expats.
Two zones work differently:
- DIFC. For service since 1 February 2020, there is no lump-sum gratuity. Your employer pays into the DIFC Employee Workplace Savings plan (DEWS) every month instead: at least 5.83% of your basic salary for your first five years and 8.33% after that. You claim the balance from the plan when you leave, so this calculator only applies to DIFC service before February 2020.
- ADGM. Abu Dhabi Global Market has its own Employment Regulations, in force since 1 April 2025. They removed the two-year cap on gratuity and let employers offer a pension or savings scheme instead. Check your contract to see which one you’re on.
Common gratuity calculation mistakes
- Using total salary instead of basic salary.
- Entering the wrong start or end date. Use the dates on your contract and cancellation papers.
- Forgetting to subtract unpaid leave days.
- Dividing by 26 days instead of 30.
- Ignoring the cap of two years’ basic salary on long service.
- Expecting gratuity on leave salary or notice pay. Those are paid separately, as shown in final settlement mode.
UAE gratuity rules people often get wrong
How is gratuity calculated in the UAE?
Divide your basic salary by 30 to get the daily wage. Multiply by 21 days for each of your first five years and by 30 days for each year after that. The total cannot exceed two years’ basic salary.
Is gratuity calculated on 26 days or 30 days?
The UAE calculation uses 30 days, so the daily wage is basic salary ÷ 30.
Do I get gratuity if I resign before one year?
No. You need at least one year of continuous service. After one year, you are entitled whether you resign or your employer ends the contract.
Is leave salary calculated on basic or total salary?
Unused annual leave paid out at the end of employment is calculated on your basic salary. Notice pay is based on your full salary.
How long does my employer have to pay my final settlement?
14 days from the end of the contract. If you are not paid, contact MOHRE.
About this calculator
The calculator and examples were checked by the UAE Live Jobs editorial team on 9 October 2026 against Federal Decree-Law No. 33 of 2021. Results are estimates. Your contract, unpaid leave records and any court or MOHRE decision can change the final amount. This is general information, not legal advice. Related: ILOE job-loss insurance, unpaid leave and gratuity.
