Gratuity uses your basic salary (not allowances): 21 days' pay per year for the first 5 years, then 30 days per year after that — capped at 2 years' basic salary. Example: AED 10,000 basic over 6 years ≈ AED 45,000. Enter your details below.
How UAE gratuity is calculated (2026)
- Eligibility: at least 1 year of continuous service with the same employer.
- First 5 years: 21 calendar days of basic salary for each year.
- After 5 years: 30 calendar days of basic salary for each additional year.
- Daily wage: monthly basic salary ÷ 30.
- Basis: last basic salary only — housing, transport, overtime and bonuses are excluded.
- Cap: total gratuity cannot exceed 2 years' basic salary.
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Frequently asked questions
How is gratuity calculated in the UAE?
On your last basic salary: 21 days of basic pay per year for the first 5 years, 30 days per year after 5 years. Daily wage = monthly basic ÷ 30. Minimum 1 year service; total capped at 2 years' basic salary.
Basic salary or total salary?
Basic salary only — allowances (housing, transport, overtime, bonuses) are excluded.
Minimum service?
At least one continuous year with the same employer; partial years after that accrue proportionally.
Is there a maximum?
Yes — total gratuity is capped at two years' basic salary.
Estimate for guidance only, not legal advice. Confirm with MOHRE or your employer. Free-zone (e.g. DIFC) schemes may differ.