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UAE Gratuity Calculator 2026
End-of-service gratuity (mukafa’at nihayat al-khidma) in the UAE follows Article 51 of Federal Decree-Law No. 33 of 2021 — in force since 2 February 2022. The single most important thing to know: the old resignation-reduction tiers are dead. Most page-1 Google results still teach them. This calculator uses current law only.
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Calculate your UAE gratuity ESTIMATE ONLY
How it works: daily wage = monthly basic ÷ 30. Years 1–5 earn 21 days’ wage per year; year 6 onward earns 30 days’ wage per year. Under one year of service = nothing. Total capped at 2 years’ wages (24 × monthly basic).
TEST CASES (hand-verified 2026-10-09): (12000,7y)->66000.00; (12000,1y)->8400.00; (12000,0.5y)->0; (20000,30y)->capped 480000.00; (12000,5y)->42000.00; resigned (12000,3y)->25200.00 no reduction
The formula: Article 51
| Service period | What you earn |
|---|---|
| Each of the first 5 years | 21 days’ basic wage per year |
| Each year after the 5th | 30 days’ basic wage per year |
The base is your basic wage only — housing, transport and other allowances are excluded. Partial years are prorated, and unpaid absence days are excluded. The payout can never exceed two years’ wages.
Resignation: the myth that won’t die
Under the old law (Federal Law No. 8 of 1980), resigning workers lost a third or two-thirds of their gratuity depending on service. That law was repealed on 2 February 2022. Under current Article 51, your reason for leaving does not reduce the amount — resignation, termination and expiry all pay the full formula. The only forfeiture is summary dismissal for gross misconduct. If a website reduces your gratuity because you resigned, it is applying dead law — as of October 2026, several top-ranking pages still do.
Worked example
Basic salary: AED 12,000 · Service: 7 years · Resigned
- Daily wage = 12,000 ÷ 30 = AED 400
- First 5 years: 21 × 400 × 5 = AED 42,000
- Next 2 years: 30 × 400 × 2 = AED 24,000
- Raw total = AED 66,000 (cap = 24 × 12,000 = AED 288,000 — not hit)
- Estimated gratuity = AED 66,000 — resignation changes nothing under current law
Frequently asked questions
How is UAE gratuity calculated in 2026?
Under Article 51 of Federal Decree-Law No. 33 of 2021: 21 days’ basic wage for each of the first 5 years of service, and 30 days’ basic wage for each year after that. The daily wage is your monthly basic divided by 30. The total cannot exceed two years’ wages, and you need at least one full year of continuous service.
Does resigning reduce my UAE gratuity?
No. The resignation reduction tiers belonged to the old law (Federal Law No. 8 of 1980) and were repealed when the new decree took effect on 2 February 2022. Under current Article 51, resigning workers get the same gratuity as terminated workers. Pages that still apply the old tiers are outdated.
What is the maximum UAE gratuity I can receive?
Two years’ wages — 24 months of your basic salary. Even with 30 years of service, Article 51 caps the payout at this level.
Is UAE gratuity based on basic salary or total salary?
Basic salary only. Housing, transport and other allowances are excluded from the UAE gratuity calculation — this differs from Saudi Arabia, where fixed allowances count.
Do I get gratuity if I worked less than a year in the UAE?
No. Article 51 requires at least one full year of continuous service. Under one year, no statutory gratuity is payable.
When must my employer pay UAE gratuity?
MOHRE guidance widely cites a 14-day payment rule after the contract ends. The 14-day figure is corroborated by multiple sources citing MOHRE; confirm timing with MOHRE directly if your payment is delayed.
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