01
Start with the last basic salary
Enter the final basic salary that applied at the end of service. This is the number that usually matters most for gratuity, not the full monthly package.
🇦🇪 UAE gratuity
UAE Gratuity Calculator
Last updated on May 17, 2026 • Editorial policy
Estimate end-of-service gratuity for a foreign worker in the UAE private sector here. Most people only need four things to get started: the last basic salary, the service dates, unpaid days if any, and whether at least one full year of continuous service has been completed.
1 full year
Continuous service usually needs to reach at least one year before the standard gratuity route produces a payable amount.
21 days
The first five years are usually valued at 21 days of basic wage for each completed year of eligible service.
30 days
Service beyond five years usually moves to the higher 30-day rate, while the earlier years stay in the lower band.
14 days
Employers are generally expected to settle final dues, including gratuity when applicable, within 14 days from the contract end date.
Gratuity calculator
Enter your last basic salary and service period to estimate end-of-service gratuity more realistically than a simple years-only shortcut.
Use your last basic salary, not your full package
Under Article 51 of the UAE Labour Law, gratuity for foreign workers in the private sector is generally based on the last drawn basic salary. Housing, transport, and other regular allowances are usually not part of the gratuity wage base.
If you are checking an older question about limited vs unlimited contracts, or resignation vs termination, the formula follows the current standard private-sector route and reflects the newer-law gratuity view most workers need today.
How to read the gratuity result
Follow this flow when you want a quicker gratuity estimate that still reflects the details that usually change the outcome.
02
Use the full service dates
Add the employment start date and end date so the page can work out the service period more accurately than a rough years-only estimate.
03
Remove unpaid absence days
If unpaid days were part of the record, enter them so the eligible service period is adjusted in line with public UAE guidance.
04
Choose the work arrangement
Use full-time for the standard gratuity route, or switch to part-time or another work model if you need the estimate to reflect an hours-based proportion.
05
Review the gratuity and the cap
Check the gratuity amount, the service period used, the gratuity days earned, and the capped limit so you can compare the result with your final settlement paperwork more confidently.
How UAE gratuity usually changes over time
These are the service bands most people want to sanity-check when they are leaving a role or reviewing an employer settlement.
Under 1 year
No standard gratuity under the usual private-sector rule
If continuous service stays below one year, the standard foreign-worker gratuity route generally does not produce an end-of-service gratuity amount.
0 days per year
1 to 5 years
Service is usually valued at 21 days of basic wage for each year
This is the band many employees use when checking whether a settlement based on the first few years of service feels reasonable.
21 days per year
Beyond 5 years
Later service is usually valued at 30 days of basic wage for each year
The first five years still use the earlier band, then the years after that move to the higher 30-day rate, subject to the overall statutory cap.
30 days per year
What counts in a UAE gratuity estimate
A few inputs matter much more than the rest. This is where most confusion usually comes from.
Last basic salary
The estimate uses the last basic salary as the main wage base. Regular allowances are usually not part of the gratuity wage used for foreign workers in the private sector.
Continuous service period
The page works from start date to end date, then converts that service period into a proportionate gratuity figure once the one-year threshold is met.
Unpaid absence days
Unpaid days are not counted in the service length used for the gratuity estimate, so even a small unpaid period can slightly change the final figure.
Work arrangement ratio
For part-time or similar arrangements, the page applies the annual-hours ratio described in Cabinet Resolution No. 1 of 2022 public guidance, so the result scales from the comparable full-time gratuity amount rather than treating every contract as full-time.
How the gratuity estimate is worked out
The page keeps the logic visible so you can check the estimate instead of treating it like a black box. The core rules below reflect the standard private-sector route described in Article 51 and the public UAE guidance around other work models.
Eligible service
Service days - unpaid days, converted to years
If the eligible service stays below one year, the standard end-of-service gratuity route usually does not produce a payable amount.
Daily basic wage
Last basic salary / 30
This is the daily wage base used to translate the gratuity day entitlement into an AED estimate.
Gratuity days
(21 x first 5 years) + (30 x years after 5)
Fractions of a year are treated proportionately once the one-year threshold has already been met.
Final estimate
Daily basic wage x gratuity days x work model factor
The result is then limited by the statutory two-year wage cap, and any deductions you enter are shown separately as a final after-deductions figure.
Examples
These examples show how a gratuity estimate can move when service length or work arrangement changes.
Example 01
Full-time employee with 4 years and 3 months of service
Last basic salary: AED 7,500. No unpaid absence days.
AED 22,312.50
- Daily basic wage: AED 250
- Eligible service: about 4.25 years
- Gratuity days earned: about 89.25 days
Example 02
Employee with 7 years of service
Last basic salary: AED 9,000. No deductions entered.
AED 49,500.00
- First 5 years at 21 days per year
- Next 2 years at 30 days per year
- Total gratuity days: 165
Example 03
Basic salary vs full package confusion
Monthly package: AED 12,000. Last basic salary: AED 7,000. Service length: 5 years. The gratuity estimate uses the last basic salary, not the full package figure.
AED 24,500.00
- Daily basic wage: AED 233.33
- Gratuity days earned: 105
- Using AED 12,000 instead would overstate the estimate
- This is why the salary basis matters more than the headline package
Gratuity rules and official sources
Use this estimate to check the logic behind a gratuity number, not to replace your final employer settlement statement.
- The calculation is designed for the standard foreign-worker gratuity route in the UAE private sector under Article 51 of Federal Decree Law No. 33 of 2021.
- UAE national workers generally follow pension and social security legislation instead of this standard gratuity route.
- For part-time or similar work models, the page uses the annual-hours ratio described in public UAE guidance and Cabinet Resolution No. 1 of 2022. Your employer’s final treatment can still depend on the contract and settlement method used.
- The estimate does not model the voluntary UAE savings scheme after employer enrolment. If the employee was moved into that scheme, pre-enrolment and post-enrolment treatment can differ.
Source direction
- UAE Government: End of service benefits for workers in the private sector
- UAE Government: Employment laws and regulations in the private sector
- MOHRE: Dear Worker – Know Your Rights
If your employer uses a more specialised settlement method, compare the page result with your contract, payslips, and the final settlement statement before treating the number as final.
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Open calculatorFAQ
These are the questions people usually ask when they want to understand whether a UAE gratuity figure looks right.
Is gratuity based on basic salary or total package?
For foreign workers in the UAE private sector, gratuity is generally based on the last drawn basic salary rather than the full monthly package.
Do unpaid days affect the calculation?
Yes. Public UAE guidance says unpaid absence days are not included in the service period used for gratuity.
Do I get gratuity for part of a year?
Usually yes, once one full year of continuous service has already been completed. After that, fractions of a year can be counted proportionately.
What happens after five years of service?
The first five years are usually valued at 21 days of basic wage per year, and the years after that are usually valued at 30 days of basic wage per year.
Does the gratuity formula here work for UAE national workers?
Not in the same way. UAE nationals in the private sector generally follow pension and social security legislation rather than the standard foreign-worker gratuity route used here.
Can the gratuity check help with part-time service?
Yes. The page includes the public annual-hours ratio for part-time or similar arrangements, while still treating the final employer settlement as the controlling figure.