End-of-Service Gratuity Calculator
UAE · Dirham
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How end-of-service is calculated in UAE
The UAE uses a single tiered formula based on your last basic salary, with a cap of two years’ pay.
Eligibility begins after one full year of continuous service.
21 days’ basic pay for each of the first 5 years, then 30 days for each additional year.
The total gratuity is capped at two years’ basic salary.
Since 2021 there is no difference between resignation and termination (except gross misconduct).
An estimate for mainland contracts. DIFC/ADGM free zones use a separate savings-scheme model.
Frequently asked questions
Who is entitled to end-of-service gratuity in UAE?
The UAE uses a single tiered formula based on your last basic salary, with a cap of two years’ pay.
How is end-of-service gratuity calculated in UAE?
Eligibility begins after one full year of continuous service. 21 days’ basic pay for each of the first 5 years, then 30 days for each additional year.
Do I still get gratuity if I resign in UAE?
In UAE, the benefit accrues the same way whether you resign or your employment is terminated.
Is gratuity based on basic salary or total salary in UAE?
Basic salary only — excludes allowances.
Which law governs end-of-service gratuity in UAE?
Federal Decree-Law No. 33 of 2021. An estimate for mainland contracts. DIFC/ADGM free zones use a separate savings-scheme model.