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Gratuity Calculator for Resignation in UAE
Work out what you are owed when you resign. Under the 2026 rules you receive the full amount, even before 5 years.
Updated 11 June 2026 · Federal Decree-Law No. 33 of 2021 (UAE Labour Law)
Full gratuity after one year of service. Resigning no longer reduces it under the 2021 law.
How the amount is worked out
Three steps, shown with your own figures once you enter them.
- Find the daily basic
Basic salary ÷ 30Gratuity uses the last drawn basic salary, without allowances.
- 21 days a year for the first five years
Daily basic × 21 × yearsPart years count pro rata once one full year is complete.
- 30 days a year after that
Daily basic × 30 × years over 5The total is capped at 2 years' basic salary.
In this article
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.
Questions, answered.
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.
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.
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.
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.
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.
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