{"slug":"uae-gratuity","name":"UAE End-of-Service Gratuity Calculator","category":"earn","tags":["income","employment","planning"],"region":"AE","tagline":"Your end-of-service gratuity under Decree-Law 33/2021 Art. 51 — basic wage, no resignation penalty — plus the savings-scheme comparison.","endpoint":"https://xearno.tools/api/v1/tools/uae-gratuity","page":"https://xearno.tools/t/uae-gratuity","description":"Computes the end-of-service gratuity (مكافأة نهاية الخدمة) under UAE Decree-Law 33/2021: 21 days of basic wage per year for the first five years of service, 30 days per year after, on the LAST basic wage only, capped at two years' wage — and, in compare mode, the monthly contribution the voluntary savings scheme (Cabinet Resolution 96/2023) would pay instead. General AI reliably gets the UAE wrong in two ways: it cites the ABOLISHED 1980-law rules (limited/unlimited contracts, the 1/3–2/3 resignation penalty, forfeiture on dismissal — all gone since February 2022), and it ports Saudi rules across the border (KSA uses the actual wage including allowances, keeps a resignation ladder, and zeroes the award on an Art. 80 dismissal; the UAE does none of those). Mainland UAE only — DIFC (DEWS) and ADGM have their own regimes.","inputSchema":{"type":"object","properties":{"basicMonthly":{"description":"Last monthly BASIC wage (AED) (AED) UAE gratuity uses the BASIC wage only — housing, transport, and other allowances are excluded. This is the OPPOSITE of Saudi Arabia, where the base is the actual wage including allowances. Check your contract's basic/allowance split; the gratuity rides on the basic line alone.","type":"number","minimum":0,"default":8000},"serviceYears":{"description":"Years of service Total continuous service in years — decimals are fine, fractions of a year earn pro-rata. Days of unpaid absence are excluded from the service count. Under one full year of service, no gratuity is due.","type":"number","minimum":0,"maximum":45,"default":6},"mode":{"description":"What to compute The savings scheme is an employer opt-in that replaces gratuity accrual with monthly contributions to a licensed, ring-fenced fund. Compare mode shows the monthly contribution at your current service band and how the two regimes differ.","type":"string","enum":["gratuity","compare"],"default":"gratuity"}},"required":[],"additionalProperties":false},"methodology":["Gratuity (Decree-Law 33/2021 Art. 51): daily wage = last monthly BASIC wage ÷ 30 (the MOHRE convention); gratuity = daily × 21 days per year for the first five years of service + daily × 30 days per year beyond five — gratuity = (basic/30) × (21 × min(years, 5) + 30 × max(years − 5, 0)). Fractions of a year earn pro-rata; under one full year of service no gratuity is due. Days of unpaid absence are excluded from the service count.","Wage base: the BASIC wage only — housing, transport, and other allowances are excluded. This is the opposite of Saudi Arabia, where the end-of-service award is computed on the actual wage including fixed allowances. Getting the base wrong moves the answer more than any other input.","Cap: the total gratuity shall not exceed two years' wage. This tool implements the cap as 24 × the monthly basic wage. Honest note on an ambiguity: the statute's cap clause says \"wage\" — which some practitioners read as the TOTAL wage including allowances — while the accrual formula uses basic only. The basic-only reading is the conservative floor; a total-wage reading would only raise the ceiling. Either way the cap starts to bind only around 25+ years of service, so for most tenures it never matters.","No reductions: resignation pays the SAME gratuity as employer termination. The 1980 law's 1/3–2/3 resignation penalties and the limited/unlimited contract distinction were ABOLISHED — all contracts are fixed-term under Decree-Law 33/2021, in force since February 2022. Gratuity also survives a summary dismissal under Art. 44: the old Art. 120 forfeiture was repealed, and courts can strip the gratuity only in extreme proven cases. The employer may deduct legally established amounts the worker owes from the payout.","Savings scheme (Cabinet Resolution 96/2023, voluntary, from 1 November 2023): an employer opt-in that replaces gratuity accrual with monthly contributions to licensed, ring-fenced funds — 5.83% of basic wage for workers with under 5 years' service, 8.33% for 5 years or more. Those rates are exactly the gratuity formula in monthly form (21/360 and 30/360). The employee keeps the investment returns; gratuity accrued before opt-in is frozen at the opt-in-date basic wage and paid at end of service. The scheme converts an unfunded employer liability into money held by a fund — removing the employer-credit risk on the accrual.","Scope: mainland UAE only. The DIFC free zone replaced gratuity with the mandatory DEWS defined-contribution plan in February 2020, and ADGM runs its own regime — neither is computed here. Verified against Decree-Law 33/2021 Art. 51 and Cabinet Resolution 96/2023, 2026-07-23."],"usage":"POST https://xearno.tools/api/v1/tools/uae-gratuity with a JSON body matching inputSchema."}