UAE Gratuity Calculator
Estimate your end-of-service gratuity under the UAE Labour Law from your basic salary and dates of service.
Estimated gratuity
AED 72,562
- Service counted
- 8 yrs 276 days
- Daily basic wage (basic ÷ 30)
- AED 333
- First 5 years
- 21 days a year
- After 5 years
- 30 days a year
Taking it home to India? See what to do with your gratuity.
An estimate for full-time private-sector jobs under the UAE Labour Law (Federal Decree-Law No. 33 of 2021). DIFC, ADGM and government jobs follow their own rules, and your contract or employer may differ. Your final settlement is set by your employer.
How UAE gratuity is worked out
End-of-service gratuity is set by Article 51 of the UAE Labour Law, Federal Decree-Law No. 33 of 2021. It is paid to full-time private-sector employees who complete at least one year of continuous service, and it is based only on your last basic salary.
Your daily wage is your monthly basic salary divided by 30. For each of your first five years you earn 21 days of that wage; for each year after, 30 days. Part years count pro rata, unpaid leave is left out, and the total cannot be more than two years’ basic pay. Your employer must settle it within 14 days of your last working day.
Worked example
Eight years on a AED 10,000 basic salary
Daily wage: 10,000 ÷ 30 = AED 333.33. First five years: 5 × 21 × 333.33 = AED 35,000. Next three years: 3 × 30 × 333.33 = AED 30,000. Gratuity: about AED 65,000, well under the two-year limit of AED 240,000.
Bringing your gratuity home to India
For many families in the Gulf, gratuity is the largest single sum they bring home. It arrives at the busiest moment, in the middle of a move, which is exactly when hurried decisions get made.
Bring it through normal banking channels. If you may need foreign currency later, for a child’s studies abroad for example, it can sit in a Resident Foreign Currency (RFC) account once you are back. Then give each part a goal and a time frame before investing it, and consider moving it into markets in stages rather than on one day. Our returning to India checklist and the UAE NRI page cover the rest.
UAE gratuity questions
For a full-time private-sector employee with at least one year of continuous service: 21 days of basic wage for each of the first five years, and 30 days of basic wage for each year after that, with part years counted pro rata. The daily wage is the monthly basic salary divided by 30, and the total cannot exceed two years' basic wage.
On the last basic salary only. Housing, transport and other allowances are not included.
Under the current UAE Labour Law, an employee who resigns after at least one year of continuous service is entitled to gratuity on the same 21-day and 30-day basis. The earlier reductions on resignation no longer apply.
Yes. Days of unpaid leave are not counted as service, so they reduce the years used in the calculation.
No. Employers in the DIFC and ADGM free zones follow their own employment rules, and some pay into a savings scheme instead. This calculator follows the federal UAE Labour Law for mainland private-sector jobs.
Bring it home through normal banking channels, keep it in foreign currency in an RFC account if you may need it abroad later, and give each part a goal before investing. Our returning-to-India checklist walks through the steps.
Moving home?
Give your gratuity a plan.
We help Gulf families turn gratuity and savings into an emergency fund, children’s education and retirement income in India, starting on WhatsApp while you are still in the UAE.