UAE Gratuity Calculator 2026
If you’ve worked in the UAE for more than a year, you’re legally entitled to end-of-service gratuity when you leave. But most calculators online get it wrong — they assume one static salary throughout your entire tenure. This calculator is different. It lets you enter every salary period separately, flags common restructuring tactics that reduce your payout, and shows you a line-by-line breakdown of exactly how your entitlement is calculated under Federal Decree-Law No. 33 of 2021 (Article 51). Updated April 2026.
✓ Multiple salary periods — add as many contract changes as you’ve had
✓ Automatically splits the 21-day / 30-day rate at the 5-year threshold
✓ Flags salary reductions that may indicate contract restructuring
✓ Covers Savings Scheme enrolment, unpaid leave, and the 2-year cap
✓ Compare your employer’s offer against your legal entitlement
Not sure which figures to use?
Your basic salary is shown on your employment contract and payslip — it excludes housing allowance, transport allowance, and any other additions. Only basic salary counts for gratuity.
UAE Gratuity Calculator 2026
The only calculator that handles salary changes, contract restructuring, and multiple service periods — so you know exactly what you’re owed.
Add one row per salary period. If your basic salary changed (even due to “restructuring” that moved money to allowances), add a new period. Gratuity is calculated on basic salary only — not allowances, housing, transport, or bonuses.
| Period | Service | Basic (AED) | Rate | Gratuity (AED) | Notes |
|---|
This calculator is for guidance only, based on Federal Decree-Law No. 33 of 2021 (Article 51) and its Executive Regulations as of April 2026.
It does not constitute legal advice. For disputes, contact MOHRE or consult a UAE employment lawyer.
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How UAE Gratuity Is Calculated in 2026
Under Article 51 of Federal Decree-Law No. 33 of 2021 — which has governed all private-sector employment since 2 February 2022 — gratuity is calculated on your basic salary only, using the following rates:
✓ 21 days’ basic salary for each year of the first 5 years of service
✓ 30 days’ basic salary for each year of service beyond 5 years
✓ Pro-rated for any partial year (provided you have completed at least 1 full year)
✓ Capped at a maximum of 2 years’ total basic salary
Days of unpaid leave are excluded from your qualifying service period. Your employer must settle all final entitlements, including gratuity, within 14 days of your last working day.
The old distinction between limited and unlimited contracts no longer applies — all contracts are now fixed-term, and the same formula applies regardless of how you leave (with the exception of gross misconduct under Article 44, where your gratuity is retained but notice pay is not).
Why Your Salary History Changes Everything
Here’s what most people — and most calculators — miss: gratuity is calculated on your basic salary at the time of each service period, not simply your final salary.
This matters enormously when salaries have changed. A common scenario in UAE schools and corporates is a contract “restructure” that reduces basic salary while adding or increasing non-pensionable allowances. Your total take-home pay may stay the same or even increase — but your gratuity entitlement falls, sometimes by tens of thousands of dirhams.
→ For a detailed breakdown of this issue with real examples, read our guide: How Salary Restructuring Affects Your UAE Gratuity — And What to Do About It
UAE Gratuity: Complete Guide Hub
The calculator gives you the number. These guides explain everything behind it — and what to do if something isn’t right.
Understanding Your Calculation
- How Salary Restructuring Affects Your UAE Gratuity — And What to Do About It
- Gratuity Before and After February 2022: Calculating Across the UAE Labour Law Change
- UAE Gratuity for School Teachers: Does Summer Count, and How Contract Changes Impact Your Payout
- UAE Gratuity for Part-Time and Flexible Workers: The Pro-Rata Rules Explained
- DIFC and ADGM Employees: How DEWS Replaces Gratuity and What You’re Owed
- UAE Savings Scheme vs Traditional Gratuity: What Happens to What You’ve Already Accrued
Protecting Your Payout
- UAE Gratuity: What Your Employer Can Legally Deduct (and What They Can’t)
- How to Dispute Your UAE Gratuity Calculation — Step by Step
- How to File a MoHRE Complaint About Unpaid or Incorrect Gratuity
Leaving the UAE
- UAE Gratuity + Final Settlement: What Should Be in Your Last Paycheck
- UAE Exit Checklist: When to Trigger Your Gratuity Claim
Frequently Asked Questions
Does gratuity include allowances?
No. Gratuity is calculated on basic salary only. Housing allowance, transport allowance, utility allowance, and any other additions to your pay are excluded under Article 51 of Federal Decree-Law No. 33 of 2021.
What if my salary changed during my employment?
Each salary period is calculated separately using the basic salary that applied at the time. Use the “Add Another Salary Period” function in the calculator above to enter each period with its own dates and basic salary.
I have under 1 year of service — am I entitled to anything?
No statutory gratuity applies for less than one full year of continuous service. However, if you were terminated without cause before completing one year, you may have a separate compensation claim under Article 47 of the Labour Law — consult a UAE employment lawyer.
My employer is offering less than the calculator shows — what do I do?
Enter the offer amount in the “Employer’s Offer” field and the calculator will show the difference. If there’s a shortfall, you can raise a free complaint through MoHRE. See our step-by-step guide: How to File a MoHRE Complaint About Unpaid or Incorrect Gratuity.
Does this calculator apply to DIFC or ADGM employees?
No — DIFC uses the DEWS defined-contribution plan and ADGM has its own separate employment regulations. The standard Article 51 formula does not apply. See: DIFC and ADGM Employees: How DEWS Replaces Gratuity and What You’re Owed.
Does the UAE Savings Scheme affect my gratuity?
Yes. If your employer enrolled you in the voluntary federal Savings Scheme (Cabinet Resolution No. 96 of 2023), traditional gratuity stops accruing from your enrolment date. Any gratuity accrued before enrolment should have been settled at that point. Use the Savings Scheme option in the calculator to handle this correctly.
What’s the maximum gratuity I can receive?
Gratuity is capped at two years’ total basic salary, regardless of how long you have worked. The calculator applies this cap automatically.
Planning your UAE exit? The gratuity calculator is one part of a bigger picture. Use our full UAE Exit Planner to manage every step — from visa cancellation and deposit refunds to school transfers and final settlement timing.
This page is for general guidance only, based on Federal Decree-Law No. 33 of 2021 and its Executive Regulations as of April 2026. It does not constitute legal advice. Laws and their application may have nuances based on your specific contract, free zone, or emirate. Always verify with MoHRE, your HR department, or a qualified UAE employment lawyer. UAEThrive.com does not provide personalised legal services.