Free tool

UAE End-of-Service Gratuity Calculator

Estimate end-of-service gratuity under UAE Federal Decree-Law No. 33 of 2021.

Gratuity calculator Updates instantly
Daily rate
AED 0.00
Estimated gratuity
AED 0.00

How this calculator works

Under Federal Decree-Law No. 33 of 2021, end-of-service gratuity for UAE private-sector employees is calculated as:

  • First 5 years: 21 days' basic salary for each year of service
  • Beyond 5 years: 30 days' basic salary for each additional year
  • Maximum: capped at 24 months' basic salary
  • Eligibility: payable only after at least one full year of continuous service

The daily rate is calculated as basic monthly salary divided by 30.

Source

Federal Decree-Law No. 33 of 2021, cross-verified against multiple UAE payroll compliance sources, checked 2026-08-06. This is an estimate for guidance only — actual entitlement can depend on contract type and termination circumstances. Hirepay automates gratuity calculation as part of UAE payroll processing.

Frequently asked questions

Is gratuity calculated on basic salary or total salary?
Basic salary only. Allowances such as housing, transport and other benefits are excluded from the calculation.
When does an employee become eligible for gratuity?
After completing at least one full year of continuous service.
Is there a maximum gratuity amount?
Yes, gratuity is capped at 24 months' basic salary regardless of total years of service.

Automate UAE payroll completely

Hirepay calculates WPS-compliant payroll and gratuity automatically.

Book a free demo See pricing