- Home
- UAE gratuity
UAE Gratuity & End of Service
How end-of-service gratuity works in the UAE in 2026 — the 21/30-day formula under Federal Decree-Law No. 33 of 2021, resignation and limited-contract rules — with a free calculator for every exit scenario.
UAE gratuity hub · 2026 · Federal Decree-Law No. 33 of 2021 (UAE Labour Law)
Gratuity & end-of-service calculators
- Gratuity calculator
The core end-of-service gratuity at 21/30 days per year under Federal Decree-Law 33/2021.
- Gratuity on resignation
Resigning? Full gratuity now applies even before 5 years under the 2026 rules.
- Limited contract gratuity
Fixed-term contract gratuity: completion, renewal and early-exit rules.
- End of service calculator
Your full final settlement: gratuity plus leave encashment, unpaid wages and notice pay.
UAE gratuity at a glance
- 21 daysBasic wage per year for the first 5 years of service
- 30 daysBasic wage per year for every year after 5 years
- 1 yearMinimum continuous service to qualify for gratuity
- Basic payGratuity is calculated on basic salary, not allowances
- FullGratuity now applies on resignation too (2022 reforms)
- 2 yearsTotal gratuity is capped at two years' total wage
In this article
How UAE gratuity is calculated
End-of-service gratuity is a lump sum your employer owes you when you leave, governed by Federal Decree-Law No. 33 of 2021. It is based on two things: your basic salary and your length of continuous service.
- First 5 years: 21 calendar days' basic wage for each year.
- After 5 years: 30 calendar days' basic wage for each additional year.
- Resignation: full gratuity applies after one year of service — the old reductions were removed in the 2022 reforms.
- Cap: total gratuity cannot exceed two years' total wage.
Because only basic pay counts, your salary structure directly affects the amount. For the complete exit payout — gratuity plus leave encashment, unpaid wages and notice pay — use the End of Service Calculator.
Questions, answered.
End-of-service gratuity is based on your basic salary and length of service under Federal Decree-Law No. 33 of 2021: 21 calendar days' basic wage for each of the first five years of service, and 30 calendar days' basic wage for each year beyond five. Only basic salary counts — allowances are excluded — and total gratuity is capped at two years' total wage.
Yes. Since the 2022 labour reforms, an employee who resigns is entitled to full gratuity as long as they have completed at least one year of continuous service. The old sliding scale that reduced gratuity for resignation under unlimited contracts no longer applies.
Gratuity is calculated on the basic salary only. Housing, transport and other allowances are excluded, which is why your basic-to-total salary ratio directly affects the amount you receive.
You must complete at least one year of continuous service to be eligible. Time spent on unpaid leave is not counted toward the service period used in the calculation.
Since 2022 all UAE private-sector contracts are fixed-term. Gratuity still accrues at 21/30 days per year of service; the calculator for limited contracts handles completion, renewal and early-exit scenarios so you can see the exact entitlement.
Your full and final settlement typically includes end-of-service gratuity plus any unpaid wages, encashment of untaken annual leave, notice-period pay and approved reimbursements, less any lawful deductions. Use the End of Service Calculator for the complete figure.
Still have a question?Talk to us
