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📆 Saturday, Rabiʻ II 8, 1448 AH — September 19, 2026

End of Service Calculator - UAE

Calculate your end of service gratuity per UAE Labor Law — Federal Decree-Law No. 33/2021

How to Use

  1. Enter your basic monthly salary
  2. Enter your length of service (years and months)
  3. Select the reason for termination (employer termination, resignation, or contract end)
  4. Press "Calculate" to see your end of service gratuity with a detailed breakdown

This tool is available for other countries

End-of-service gratuity in the UAE (2026)

End-of-service gratuity in the UAE mainland private sector is governed by Federal Decree-Law No. 33 of 2021 (in force since 2 February 2022). It is based on your last basic salary and requires at least one year of completed service.

How it is calculated (Article 51)

  • First 5 years: 21 days' wage for each year.
  • After 5 years: 30 days' wage for each year.

The award is calculated on basic salary only (allowances such as housing and transport are excluded), and the total may not exceed two years' wage.

Resignation

The 2021 law abolished the old resignation reductions: an employee who resigns after completing one year now receives the full gratuity, the same as one whose service is terminated. (The former reduction to one-third or two-thirds on unlimited contracts no longer applies.)

Misconduct dismissal and unemployment insurance

Even on summary dismissal for gross misconduct under Article 44, an eligible worker does not forfeit gratuity. The Unemployment Insurance scheme (ILOE) is separate from gratuity and paid in addition to it.

Alternative savings schemes (optional)

Since November 2023, employers may opt in to the voluntary "alternative end-of-service savings scheme," investing a monthly contribution instead of accruing the lump sum; DIFC (DEWS) and ADGM run equivalent schemes. Unless your employer has enrolled, the Article 51 formula above remains the basis.

UAE vs other GCC countries

RuleUAESaudi ArabiaBahrain
Rate21 then 30 daysHalf then full monthHalf then full month
Maximum cap2 years' payNoneNone
On resignationFull after 1 yearReduced by tenureFull

Calculation Methodology

Wage used in the calculation

The calculator uses the monthly salary you enter as the calculation base. In some systems this may be basic wage only, while in others it may include actual wage or fixed allowances; enter the wage basis that matches your country and contract.

Service period conversion

The calculator converts years and months of service into a proportional period, then applies the days or months owed per year according to the country and termination reason.

Reason employment ended

The result changes for resignation, employer termination, or contract end. Some laws reduce or deny gratuity for certain service periods. Check the legal reference on the page for final treatment.

Practical Examples

End of contract after 8 years — 15,000 AED salary

Khalid earned a basic salary of 15,000 AED and his contract ended after 8 years. First 5 years: 5 × (15,000 ÷ 30) × 21 = 52,500 AED Next 3 years: 3 × (15,000 ÷ 30) × 30 = 45,000 AED Gratuity = 97,500 AED Cap (2 years) = 360,000 AED → not exceeded Entitlement = 97,500 AED

End of service after 3 years — 10,000 AED salary

Noura earned a basic salary of 10,000 AED and her service ended after 3 years. First 3 years: 3 × (10,000 ÷ 30) × 21 = 21,000 AED Cap (2 years) = 240,000 AED → not exceeded Entitlement = 21,000 AED

Frequently Asked Questions

What changed with the new UAE labor law in 2022 regarding gratuity?
Federal Decree-Law 33/2021 (effective February 2022) eliminated unlimited contracts entirely. All private-sector contracts are now fixed-term, and workers receive full gratuity upon end of service regardless of the reason for termination.
What happened to unlimited vs. limited contracts?
Unlimited contracts no longer exist in the UAE private sector. All employment contracts must be fixed-term (maximum 3 years, renewable). This unifies gratuity rules for all workers and eliminates the old reduced-rate system for unlimited contract resignations.
Is end of service gratuity taxable in the UAE?
No. The UAE does not impose personal income tax, so end of service gratuity is received in full without any tax deductions.
What is the maximum gratuity cap in the UAE?
Total gratuity cannot exceed 2 years of basic salary, regardless of how many years of service the employee has completed.
Is an employee eligible for gratuity if they worked less than 1 year?
No. A minimum of one year of continuous service is required to be eligible for end of service gratuity in the UAE.
Is gratuity calculated on basic salary only or does it include allowances?
Gratuity is calculated on the last basic salary only. Allowances such as housing, transport, commissions, and bonuses are excluded from the calculation.

Legal References

Disclaimer: The results shown are approximate and for reference only, and do not constitute financial or legal advice. Actual amounts may vary based on additional factors. Please consult the relevant official authorities or a licensed financial advisor for accurate information specific to your situation.

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