AED 8,000 basic salary, 5 years
Input Monthly basic salary AED 8,000, exactly five completed years.
Result Daily wage AED 266.67 → 21 days × 5 years = AED 28,000 (3.5 months of basic pay).
UAE Gratuity Calculator
Everyday LifeEstimate end-of-service gratuity in the UAE from basic salary and completed years of service.
Your inputs
Result
Gratuity payable
—
- Daily basic wage —
- First 5 years (21 days each) —
- After 5 years (30 days each) —
- Equivalent in months of basic pay — months
- Statutory cap (24 months) —
Change any input and the result updates instantly.
Formula and rules
- Daily basic wage = monthly basic salary ÷ 30
- First 5 years = daily wage × 21 × min(years, 5)
- After 5 years = daily wage × 30 × max(years − 5, 0)
- Gratuity = first 5 years + after 5 years
- Statutory cap = monthly basic salary × 24
- Gratuity is capped at the statutory maximum and is only due after one full year of service
Worked examples
AED 12,000 basic salary, 8 years
Input Monthly basic salary AED 12,000, eight completed years.
Result AED 42,000 for the first five years + AED 36,000 for the next three = AED 78,000 (6.5 months).
AED 20,000 basic salary, 30 years
Input Monthly basic salary AED 20,000, thirty completed years.
Result Uncapped calculation reaches AED 570,000, so the 24-month cap applies: AED 480,000.
FAQ
Is gratuity calculated on total salary or basic salary?
Basic salary only. Housing, transport, phone and other allowances are excluded, which is why the basic salary figure on your contract matters so much.
Do I get gratuity if I resign rather than being terminated?
Yes, after one full year of service. Since Federal Decree-Law 33/2021 came into force on 2 February 2022, resignation no longer triggers the old one-third and two-third reductions for unlimited contracts.
What if I have not completed one year?
No end-of-service gratuity is payable below one year of continuous service. Any accrued leave encashment and final salary are still owed separately.
Disclaimer: This tool summarises publicly available labour rules. Regulations and their interpretation can change, and the result is not legal advice. Confirm the final amount with your contract, payslip and local authority.