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Gratuity Calculator for Resignation in UAE

Resigning in the UAE? Calculate your exact gratuity entitlement. Under the 2026 rules you receive the full amount even if you resign before 5 years.

Last updated: June 11, 2026 · Based on Federal Decree-Law No. 33 of 2021 (UAE Labour Law)

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Gratuity Rules When You Resign in UAE (2026)

The key 2026 rule: resignation no longer reduces your gratuity. Federal Decree-Law No. 33 of 2021 abolished the old reduced rates (one-third before 3 years, two-thirds between 3-5 years). If you have completed at least 1 year of continuous service, you receive the full 21 days' basic pay per year — whether you resign or are terminated.

Worked Example: Resigning at 3.5 Years

Basic salary AED 8,000, resigning after 3 years and 6 months:

Daily rate = AED 8,000 ÷ 30 = AED 266.67
Per year = 21 × 266.67 = AED 5,600.00
Gratuity = 3.5 years × 5,600 = AED 19,600.00

Worked Example: Resigning at 7 Years

Basic salary AED 10,000, resigning after 7 full years:

Daily rate = AED 10,000 ÷ 30 = AED 333.33
First 5 years = 5 × 21 × 333.33 = AED 35,000.00
Years 6-7 = 2 × 30 × 333.33 = AED 20,000.00
Gratuity = AED 55,000.00

What Can Reduce Your Payout

  • Resigning before 1 year: no gratuity at all (leave encashment is still due)
  • Unserved notice: the employer can offset compensation in lieu of notice against your settlement — see UAE notice period rules
  • Outstanding loans or advances: legally deductible from the final settlement

Related Scenarios

Ending a fixed-term contract instead? Limited contract gratuity calculator. Want the complete settlement picture? End of service calculator or the full gratuity guide.

Resignation Gratuity FAQs

Do I get gratuity if I resign in UAE?

Yes. Under Federal Decree-Law No. 33 of 2021, employees who resign after completing at least 1 year of continuous service receive full gratuity: 21 days' basic pay per year for the first 5 years and 30 days per year after that. Resignation does not reduce the entitlement.

Do I get full gratuity if I resign before 5 years in UAE?

Yes. The old law's reduced gratuity for resignation (one-third before 3 years, two-thirds between 3 and 5 years under unlimited contracts) was abolished by the 2021 labour law. Since February 2022, anyone with at least 1 year of service receives the full 21 days per year regardless of whether they resign or are terminated.

Do I get gratuity if I resign before completing 1 year in UAE?

No. One year of continuous service is the minimum threshold for gratuity eligibility. If you resign at, say, 11 months, no gratuity is due — though you are still entitled to encashment of any accrued unused annual leave and your unpaid salary.

Can my employer deduct from my gratuity if I don't serve notice?

Yes. If you resign without serving the agreed notice period (30-90 days), the employer can claim compensation in lieu of notice equal to your salary for the unserved period, and this is typically offset against your final settlement, including gratuity.

When is resignation gratuity paid in UAE?

Within 14 days of your last working day, together with the rest of your final settlement (unused leave encashment and unpaid salary). If the employer misses the deadline, you can file a MOHRE complaint.

Automate Gratuity & Final Settlement

Book a personalized demo and discover how RadixHR can automate end of service calculations, leave encashment, and final settlements for your entire organization.

1

Automated Gratuity Calculation

End of service benefits calculated automatically based on UAE Labour Law.

2

Final Settlement Dashboard

Generate complete final settlement reports including gratuity, leave, and deductions.

3

Employee Self-Service

Employees can view their projected gratuity anytime from the mobile app.

4

Payroll Integration

Final settlement amounts sync directly with payroll for accurate WPS payments.

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