Correction, 7 October 2026: This guide has been revised to remove unsupported salary-band calculations, automatic old/new-law splits and assumptions that DIFC and ADGM share the same benefits system.
For an eligible standard federal full-time foreign employee, Article 51 does not apply the old one-third or two-thirds resignation reductions. Ordinary resignation and termination use the same basic gratuity scale.
Notice is a separate question
Whether notice was served, waived or lawfully dispensed with affects notice compensation. It does not create an automatic old-law resignation reduction in gratuity. Read Article 43 and keep the notice line separate from gratuity.
Disciplinary dismissal needs careful handling
Dismissal without notice under Article 44 is not a blanket statement that all gratuity disappears. Ask the employer to identify the legal basis and evidence for any refusal or deduction. Other claims, including compensation for unlawful dismissal, have their own conditions and are not automatically included by a calculator.
The standard federal calculation
For a foreign full-time employee under federal private-sector law, Article 51 uses the last basic wage: 21 days for each of the first five qualifying years, then 30 days for each additional year. After one year of continuous service, fractions of a year are counted proportionately. Unpaid absence is excluded from the gratuity service calculation. Housing and transport allowances are not part of the basic-wage calculation. The statutory ceiling is two years’ wage; keep the distinction between basic wage and total contractual wage clear.
Check which rules apply before using a calculator
DIFC’s DEWS or another qualifying scheme, ADGM employment regulations and the federal alternative Savings Scheme have distinct rules. Part-time work needs its contractual hours ratio; domestic, government and pension-covered employment are outside this standard calculation. Use the free-zone comparison to identify your arrangement.
Compare an itemised breakdown
Use the Final Settlement Checker for a standard federal monthly-paid case. Ask HR for the wage basis, qualifying service, unused leave, notice position, earned pay and each proposed deduction. A calculator estimate is a starting point for questions, not a decision on your legal entitlement.
Reviewed 7 October 2026. General information, not personalised legal advice. If the contract, service continuity, salary change or deduction is disputed, confirm the facts with the relevant authority or a qualified employment adviser.