How is end-of-service gratuity calculated in the UAE?

21 calendar days of basic wage per year for the first five years of service, plus 30 days per year beyond five, on your LAST monthly basic wage — daily wage is basic ÷ 30 (the MOHRE convention). Fractions of a year count pro-rata; under one full year of service nothing is due; the total is capped at two years' wage (which only binds around 25+ years of service). Allowances are excluded from the base.

Do I lose part of my gratuity if I resign?

No. Under Decree-Law 33/2021 (in force since February 2022) a resignation pays exactly the same gratuity as an employer termination. The 1/3–2/3 resignation penalty and the limited/unlimited contract distinction belonged to the 1980 law and were abolished — but they still dominate old web pages and AI answers, so "you forfeit a third if you resign before 5 years" remains the most common wrong answer about UAE gratuity.

Is UAE gratuity based on basic salary or total salary?

Basic salary only — housing, transport, and other allowances are excluded. This is the opposite of Saudi Arabia, where the end-of-service award uses the actual wage including fixed allowances. If your package is allowance-heavy, your gratuity is smaller than the headline salary suggests, and a restructure that cuts basic in favor of allowances cuts the gratuity directly.

Do I still get gratuity if I am dismissed for misconduct?

Yes. Under Decree-Law 33/2021 the gratuity survives even a summary dismissal under Art. 44 — the old Art. 120 forfeiture rule was repealed, and courts can strip the gratuity only in extreme proven cases. (In Saudi Arabia the opposite holds: an Art. 80 dismissal pays zero — a common cross-border confusion.) The employer may still deduct legally established amounts you owe.

What is the UAE end-of-service savings scheme, and is it better than gratuity?

Cabinet Resolution 96/2023 (from 1 November 2023) lets employers opt in to replace gratuity accrual with monthly contributions to licensed funds: 5.83% of basic wage under 5 years' service, 8.33% at 5 years or more — exactly the gratuity formula paid monthly. The amount is the same by construction; the differences are that the employee keeps the investment returns and the money is ring-fenced with a fund manager rather than an unfunded liability on the employer's books. Gratuity accrued before opt-in is frozen at the opt-in-date basic wage. Joining is the employer's choice.

Does this apply in DIFC or ADGM?

No — this tool covers mainland UAE only. The DIFC replaced gratuity with the mandatory DEWS defined-contribution plan in February 2020, and ADGM has its own end-of-service regime. If your employment is registered in one of those free zones, their rules govern instead of Art. 51.

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UAE End-of-Service Gratuity Calculator

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.

Cơ sở: Decree-Law 33/2021 Art. 51 · basic-wage base · no resignation reductions · Cabinet Resolution 96/2023 savings scheme (voluntary) · verified 2026-07-23

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Last monthly BASIC wage (AED)AEDUAE 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.Years of serviceTotal 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.What to computeThe 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.

Các con số

End-of-service gratuity: AED 36,000; 4.50 months' basic wage
Gratuity days: 135; 21 days × 5 yrs + 30 days × 1 yr = 135 days
Daily basic wage: AED 266.67; basic ÷ 30 (MOHRE convention)

Chỉ xem trước — đang dùng Basic wage, Years of service mặc định.

Nhận định của người trong nghề

Dấu hiệu tốt

Resigning costs you NOTHING here: under Decree-Law 33/2021 a resignation pays exactly the same gratuity as an employer termination. If anything — an AI, a forum thread, an old HR memo — told you resignation forfeits a third or two-thirds of your gratuity, that law died in February 2022 along with the limited/unlimited contract distinction. Gratuity even survives a summary dismissal under Art. 44: the old Art. 120 forfeiture was repealed, and courts can strip it only in extreme proven cases.

Nên biết

If a number you heard came from Saudi experience (or an AI mixing the two), it is the wrong jurisdiction: KSA computes on the actual wage including allowances, keeps a 0 / 1/3 / 2/3 resignation ladder, and pays zero on an Art. 80 misconduct dismissal — the UAE uses basic wage only, has no resignation reduction, and gratuity survives dismissal. Same question, opposite rules on all three points.

Thận trọng

Your gratuity is computed on the basic wage only (AED 8,000) — if allowances are a big share of your package, the gratuity is smaller than expat folklore suggests. And a package restructure that cuts basic in favor of allowances cuts this number directly: every AED 1,000 off your basic removes AED 4,500 from the gratuity at your service length.

Nên biết

Past the 5-year mark, each further year accrues 30 days of basic wage (AED 8,000) instead of the first-five-years rate of 21 days — your later years are worth more than your early ones.

Nên biết

This estimates the statutory Art. 51 gratuity from the figures you entered — mainland UAE only (DIFC has mandatory DEWS since February 2020, ADGM its own regime), and the employer may deduct legally established amounts you owe. It is not legal advice; for a contested end of service, MOHRE or a UAE labour lawyer is the next step.

Bước tiếp theo

Đường băng Nghỉ việc (Tôi có đủ khả năng nghỉ không?) →See how long the gratuity carries you at your real monthly costs.

Sai đáp án, thiếu một lựa chọn, hay một công cụ bạn ước có?

Phương pháp

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.

Câu hỏi

How is end-of-service gratuity calculated in the UAE?: 21 calendar days of basic wage per year for the first five years of service, plus 30 days per year beyond five, on your LAST monthly basic wage — daily wage is basic ÷ 30 (the MOHRE convention). Fractions of a year count pro-rata; under one full year of service nothing is due; the total is capped at two years' wage (which only binds around 25+ years of service). Allowances are excluded from the base.
Do I lose part of my gratuity if I resign?: No. Under Decree-Law 33/2021 (in force since February 2022) a resignation pays exactly the same gratuity as an employer termination. The 1/3–2/3 resignation penalty and the limited/unlimited contract distinction belonged to the 1980 law and were abolished — but they still dominate old web pages and AI answers, so "you forfeit a third if you resign before 5 years" remains the most common wrong answer about UAE gratuity.
Is UAE gratuity based on basic salary or total salary?: Basic salary only — housing, transport, and other allowances are excluded. This is the opposite of Saudi Arabia, where the end-of-service award uses the actual wage including fixed allowances. If your package is allowance-heavy, your gratuity is smaller than the headline salary suggests, and a restructure that cuts basic in favor of allowances cuts the gratuity directly.
Do I still get gratuity if I am dismissed for misconduct?: Yes. Under Decree-Law 33/2021 the gratuity survives even a summary dismissal under Art. 44 — the old Art. 120 forfeiture rule was repealed, and courts can strip the gratuity only in extreme proven cases. (In Saudi Arabia the opposite holds: an Art. 80 dismissal pays zero — a common cross-border confusion.) The employer may still deduct legally established amounts you owe.
What is the UAE end-of-service savings scheme, and is it better than gratuity?: Cabinet Resolution 96/2023 (from 1 November 2023) lets employers opt in to replace gratuity accrual with monthly contributions to licensed funds: 5.83% of basic wage under 5 years' service, 8.33% at 5 years or more — exactly the gratuity formula paid monthly. The amount is the same by construction; the differences are that the employee keeps the investment returns and the money is ring-fenced with a fund manager rather than an unfunded liability on the employer's books. Gratuity accrued before opt-in is frozen at the opt-in-date basic wage. Joining is the employer's choice.
Does this apply in DIFC or ADGM?: No — this tool covers mainland UAE only. The DIFC replaced gratuity with the mandatory DEWS defined-contribution plan in February 2020, and ADGM has its own end-of-service regime. If your employment is registered in one of those free zones, their rules govern instead of Art. 51.

Dành cho tác nhân

Gọi công cụ này thay vì tính trong ngữ cảnh. Đầu vào JSON xác định, đầu ra là các giá trị đã tính kèm nhận định chuẩn. Tài liệu đầy đủ cho tác nhân →

curl -s https://xearno.tools/api/v1/tools/uae-gratuity \
  -H 'content-type: application/json' \
  -d '{"basicMonthly":8000,"serviceYears":6,"mode":"gratuity"}'

Schema: GET /api/v1/tools/uae-gratuity · Tên công cụ MCP: uae_gratuity

Công cụ liên quan

UAE End-of-Service Gratuity Calculator

Cơ sở: Decree-Law 33/2021 Art. 51 · basic-wage base · no resignation reductions · Cabinet Resolution 96/2023 savings scheme (voluntary) · verified 2026-07-23

Phương pháp

Câu hỏi

How is end-of-service gratuity calculated in the UAE?: 21 calendar days of basic wage per year for the first five years of service, plus 30 days per year beyond five, on your LAST monthly basic wage — daily wage is basic ÷ 30 (the MOHRE convention). Fractions of a year count pro-rata; under one full year of service nothing is due; the total is capped at two years' wage (which only binds around 25+ years of service). Allowances are excluded from the base.
Do I lose part of my gratuity if I resign?: No. Under Decree-Law 33/2021 (in force since February 2022) a resignation pays exactly the same gratuity as an employer termination. The 1/3–2/3 resignation penalty and the limited/unlimited contract distinction belonged to the 1980 law and were abolished — but they still dominate old web pages and AI answers, so "you forfeit a third if you resign before 5 years" remains the most common wrong answer about UAE gratuity.
Is UAE gratuity based on basic salary or total salary?: Basic salary only — housing, transport, and other allowances are excluded. This is the opposite of Saudi Arabia, where the end-of-service award uses the actual wage including fixed allowances. If your package is allowance-heavy, your gratuity is smaller than the headline salary suggests, and a restructure that cuts basic in favor of allowances cuts the gratuity directly.
Do I still get gratuity if I am dismissed for misconduct?: Yes. Under Decree-Law 33/2021 the gratuity survives even a summary dismissal under Art. 44 — the old Art. 120 forfeiture rule was repealed, and courts can strip the gratuity only in extreme proven cases. (In Saudi Arabia the opposite holds: an Art. 80 dismissal pays zero — a common cross-border confusion.) The employer may still deduct legally established amounts you owe.
What is the UAE end-of-service savings scheme, and is it better than gratuity?: Cabinet Resolution 96/2023 (from 1 November 2023) lets employers opt in to replace gratuity accrual with monthly contributions to licensed funds: 5.83% of basic wage under 5 years' service, 8.33% at 5 years or more — exactly the gratuity formula paid monthly. The amount is the same by construction; the differences are that the employee keeps the investment returns and the money is ring-fenced with a fund manager rather than an unfunded liability on the employer's books. Gratuity accrued before opt-in is frozen at the opt-in-date basic wage. Joining is the employer's choice.
Does this apply in DIFC or ADGM?: No — this tool covers mainland UAE only. The DIFC replaced gratuity with the mandatory DEWS defined-contribution plan in February 2020, and ADGM has its own end-of-service regime. If your employment is registered in one of those free zones, their rules govern instead of Art. 51.