🇦🇪 UAE Labour Law 2021
UAE Gratuity Calculator 2025
Calculate your end of service gratuity (EOSB) accurately as per Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations.
Based on UAE Federal Decree-Law No. 33 of 2021 — applicable from 2 February 2022. Gratuity is calculated on last drawn basic salary only. Allowances are excluded.
AED
Basic salary only — exclude housing, transport, other allowances
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Total Gratuity (End of Service Benefit)
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Years Served
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Daily Basic Wage
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Gratuity Days
Gratuity Breakdown
⚠️ This calculator is for informational purposes only. Gratuity entitlements may vary based on individual contracts, free zone rules, and specific circumstances. Always verify with your employer's HR department or a UAE labour law specialist. Free zone employees should check their respective authority rules.
UAE Gratuity Rules (Labour Law 2021)
| Years of Service | Gratuity Rate | Notes |
|---|---|---|
| Less than 1 year | Not entitled | No gratuity if service < 1 year |
| 1 – 5 years | 21 days' basic salary per year | Prorated for partial years |
| More than 5 years | 30 days' basic salary per year | First 5 years at 21 days, remainder at 30 days |
| Maximum cap | 2 years' total salary | Total gratuity cannot exceed this |
Frequently Asked Questions
For the first 5 years: 21 working days' basic salary per year. For service beyond 5 years: 30 working days' basic salary per year. Total gratuity is capped at 2 years' salary. Calculation is based on basic salary only — allowances are excluded.
Under the new Labour Law (2021), employees who resign after completing at least 1 year are entitled to full gratuity. The previous rules that reduced gratuity for resignations have been updated — both resignation and termination now entitle employees to full gratuity.
Gratuity is calculated on the last drawn basic salary only. Housing allowance, transport allowance, and other benefits are NOT included in the gratuity calculation base.
Partial years are prorated. For example, if you worked 6 years and 6 months, the first 5 years are calculated at 21 days/year, and the remaining 1.5 years at 30 days/year.
Free zone employees may be subject to different rules depending on their specific free zone authority. DIFC and ADGM employees, for instance, follow their own employment laws. Check with your free zone authority for the applicable rules.