UAE Gratuity Calculator 2026

Gratuity is based on basic salary only: 21 days' pay for each of the first 5 years of service, then 30 days' pay for each year beyond that, capped at 2 years' (24 months') total basic salary. At least 1 full year of continuous service is required for any entitlement, under Federal Decree-Law No. 33 of 2021.

Basic salary only. Housing, transport and other allowances are excluded under Article 51(4) — a common point of confusion for expats comparing their gratuity to their total monthly pay.

No. Since Federal Decree-Law No. 33 of 2021 took effect on 2 February 2022, resignation and employer termination without cause receive identical gratuity. The reduced-gratuity-on-early-resignation penalty from the earlier 1980 Labour Law no longer applies.

Only in narrow gross-misconduct cases under Article 44 (e.g. assault on the employer, or conduct that seriously harms the employer's safety or finances), and the employer generally has to establish the ground rather than withhold it unilaterally. This calculator's 'Termination With Cause' option shows that worst-case outcome as an estimate, not a legal ruling on your specific case.

Gratuity is capped at 2 years' total basic salary (24 months), regardless of how long you've worked, under Article 51(5).