UAE End of Service Gratuity Calculator
Calculate end-of-service benefits accurately based on UAE Federal Decree-Law No. 33 of 2021. Updated for 2025 with the latest labor law provisions.
Employee Details
Enter basic salary only (excluding allowances, commissions, bonuses)
Contract Details
Since Feb 2022, all new contracts must be limited (fixed-term)
End of Service Gratuity
Service Period: 0 years, 0 months, 0 days
Calculation Breakdown
Calculation Details
- Please enter all required fields
UAE Labor Law Quick Reference
Eligibility
Minimum 1 year of continuous service required to be eligible for gratuity.
First 5 Years
21 days of basic salary for each year of service during the first 5 years.
After 5 Years
30 days of basic salary for each year of service after the first 5 years.
Maximum Cap
Total gratuity cannot exceed 2 years' worth of basic salary.
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Frequently Asked Questions
What salary is used for gratuity calculation?
Only the basic salary is used. Allowances (housing, transport, etc.), bonuses, commissions, and overtime are excluded from the calculation.
What changed with the new UAE Labor Law?
Federal Decree-Law No. 33 of 2021 (effective Feb 2022) requires all new contracts to be fixed-term (limited). Existing unlimited contracts can continue but new ones are no longer issued.
Is gratuity taxable in the UAE?
No, the UAE does not impose income tax on employment income, including end-of-service gratuity payments.
Can an employer deduct from gratuity?
Employers may deduct outstanding amounts owed by the employee (loans, advances, damages). However, they cannot deduct more than what is legally owed.
When should gratuity be paid?
Under UAE law, all end-of-service benefits including gratuity must be paid within 14 days of the employment end date.
Disclaimer: This calculator provides estimates based on UAE Federal Decree-Law No. 33 of 2021. Results are for informational purposes only and should not be considered legal advice. For specific cases or disputes, please consult with a qualified UAE labor law attorney or MOHRE (Ministry of Human Resources and Emiratisation).