UAE gratuity calculator: How to calculate your end-of-service pay in 2026

Dubai: Leaving your job in the UAE? Or moving to a new opportunity? Your end-of-service gratuity could be one of the most important financial payouts you receive, as you transition to a new phase in your career. Here’s a clear, step-by-step guide on what you need to know about the UAE Labour Law and how you can calculate your gratuity. 1. Have you worked for at least a year? The first thing to consider is that you only become eligible for a gratuity payout if you have worked for at least one year, continuously, for your current employer. This is referred to as continuous service, and this does not include any period of unpaid leave you may have taken. When do you become eligible for gratuity? Article 51 of the UAE Labour Law – Federal Decree-Law No. 33 of 2021 – refers to this as employees who complete one year or more of continuous service are entitled to end-of-service gratuity. 2. What is your basic salary? Another important point to remember is that your gratuity isn’t calculated as per your total salary, but your ‘basic salary’. This basic salary is clearly listed out in your employment contract, along with the other benefits you may receive every month, like your housing or transport allowance. Important Labour Law terms The UAE Labour Law, in Article 1, provides the following definitions: Basic wage (basic salary): The wage stipulated in the employment contract, which is paid to the worker in consideration of his work under the employment contract, on a monthly, weekly, daily, hourly or piecework basis, and which does not include any other allowances or benefits in kind. Continuous service: Uninterrupted service with the same employer or its legal successor, from the date of commencement of work. 3. Get your daily basic wage Once you have your basic salary amount, you would need to divide that by 30, to get your daily basic wage. This is the amount that will be used for calculating your gratuity, as per the formula provided below. Gratuity calculator If you have worked for less than five years in the organisation, here is how your gratuity will be calculated: Daily basic wage × 21 × number of years worked If you have worked for more than five years your gratuity will be calculated in two parts: Daily basic wage × 21 × 5 (for the first five years) + Daily basic wage × 30 × number of additional years What about part of a year? If there are some months or days of additional service, you will also get paid for them. Simply divide the gratuity you have received for one year by 12, for each month, and then 30 for each day of the month. Multiply this number for the additional days that you have worked for. Sample gratuity calculation Take, for example, an employee with a basic salary of Dh7,000 . If the employee has worked for three years , here is how the gratuity will be calculated: Daily basic wage: 7,000 ÷ 30 = Dh233.33 Applying the formula for gratuity calculation for less than five years: Daily basic wage × 21 × number of years worked 233.33 × 21 × 3 = Dh14,700 Total gratuity: Dh14,700 If the employee has worked for seven years , here is how the gratuity will be calculated: Daily basic wage × 21 × 5 (for the first five years) + Daily basic wage × 30 × number of additional years 233.33 × 21 × 5 = Dh24,500 233.33 × 30 × 2 (additional years) = Dh14,000 Total gratuity: Dh38,500 How long do I have to wait to get my gratuity? Employers are required to pay end-of-service benefits within 14 days from the end of the employment contract. If payments are delayed, employees have the right to file a complaint with the relevant authorities.