UAE End-of-Service Gratuity Calculator
What is your end-of-service gratuity under UAE Federal Decree-Law No. 33/2021, Article 51? Basic salary in, gratuity out — with the cap and the assumptions shown.
For full-time expatriate workers in the UAE private sector, Article 51 provides: 21 days' wage per year for each of the first five years of continuous service, and 30 days' wage per year for each year after that, calculated on the basic wage. You need at least one full year of continuous service; below one year the gratuity is zero. Part-years are pro-rated once you have completed one year.
Two things most online calculators gloss over. First, the daily wage is last monthly basic ÷ 30 — that is the standard practice combining Article 51 with Article 67 (a month comprises 30 days), not a sentence inside Article 51 itself. Second, the cap in Article 51(6) says the gratuity may not exceed, in aggregate, the wage of two years — and Article 1 defines “wage” as basic plus allowances, not basic alone. This calculator therefore caps at 24 × your monthly total wage (basic + allowances), and shows the assumption. If your total wage equals your basic wage, the cap is 24 × basic. Unpaid absence days are excluded from service under Article 51(4); this calculator subtracts them as unpaid days ÷ 365 from service years and labels that as an assumption, because the law states the principle, not the arithmetic.
Since 2 February 2022, resignation and termination use the same formula — the old resignation reductions under the repealed 1980 law are generally gone. There is a transitional exception in Article 68(3) under which an employer may still apply the 1980 unlimited-contract rules in some cases, so check your contract if it predates 2022. This calculator does not apply any automatic forfeiture for misconduct: Article 51(7) allows only deductions payable by law or by court judgment. Scope: full-time expatriate private-sector workers only. UAE nationals fall under pension law, part-time and other work models fall under Article 52, and DIFC (DEWS) / ADGM have separate regimes — do not apply this formula there.
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How to use the result
- Use your last basic wage for the accrual, and your last total wage (basic + allowances) for the cap.
- Check whether your contract is a transitional Art. 68(3) case before accepting the unreduced figure.
- Keep the cap assumption in mind: if an employer caps at 24 × basic instead, the figure will be lower for anyone with allowances.
Frequently asked questions
Does resignation reduce my gratuity?
Generally no since 2 February 2022. The old reductions came from the repealed 1980 law. There is a transitional exception in Article 68(3) — check a pre-2022 contract.
Why is the cap based on total wage, not basic?
Article 51(6) says “the wage of two years”, and Article 1 defines wage as basic plus allowances. Many calculators simplify this to 24 × basic, which understates the cap for anyone with allowances. This calculator follows the literal text and shows the assumption.
What if I was dismissed for misconduct?
This calculator does not apply automatic forfeiture. Article 51(7) allows only deductions payable by law or by court judgment. Misconduct consequences depend on the specific ground and procedure — get advice before assuming zero.
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Sources & verification: see links in the text above. Rates verified 2026-10-18. If a rate or law has changed since then, the law prevails over this calculator.