How much UAE gratuity do these dates produce? How do you calculate gratuity in the UAE in 2026?

How do you calculate gratuity in the UAE in 2026?

Count only a full-time foreign worker in the private sector, and only after one continuous year. Use the last basic wage. Give 21 days of that wage for each of the first five years, then 30 days for each year after that. Take unpaid leave off the service period before you test the first year. Stop if the total would pass two years of wage. That is Article 51 of Federal Decree-Law No. 33 of 2021, as the government portal still states it. I read the page on 6 October 2026 and again on 16 October 2026. On the earlier read, the page said it was updated on 12 August 2026. The day counts had not changed.

Dubai does not get a separate mainland rate on that page. A Dubai gratuity calculator and an Abu Dhabi one are the same federal sum when the contract is ordinary private-sector employment. JAFZA, DDA, DIFC, and ADGM are different questions. The JAFZA and DDA notes say what those two zones publish, and where a rule could not be checked. The UAE labour law gratuity page is the longer read of Article 51, including a two-year example.

Two full years is the simple case. It is still inside the 21-day band, so the days are 42. If basic wage is AED 3,650, one day on this page is 3,650 times 12 divided by 365, which is AED 120, and 42 times 120 is AED 5,040. That wage is the illustration already used further down, not your payslip. One day short of a year, after unpaid leave, the line is zero.

What is end-of-service gratuity under the current decree?

For a full-time foreign worker in the federal private sector, gratuity is a lump sum paid when the job ends, calculated on the last basic wage. The government portal sets it out under Article 51 of Federal Decree-Law No. 33 of 2021. Allowances such as housing, transport, utilities, and furniture stay out of the 21-day and 30-day sums. They can still matter for the ceiling, which the portal describes as the wage of two years, not two years of basic wage alone.

This page runs the same function as the final settlement calculator and leaves unused leave, notice pay, and unpaid salary at zero. Use it when the only question is the end-of-service line. Use the settlement page when the payslip will have more than one line.

When is the gratuity zero?

The portal is plain about the first year. A worker who has served for less than one year is not entitled to gratuity. This calculator treats one year as 365 days of service after unpaid leave is removed. The count is inclusive: 1 January 2025 through 31 December 2025 is 365 days, and the gratuity is 21 days of basic wage. End the job one day earlier and the line is zero. A leap day inside the dates adds a day of service. It does not add a whole extra year. Unpaid leave days are subtracted before that test, because the portal says days of absence without pay are not included in the service period.

The worked rows further up use a basic wage of AED 3,650 so the day rate is AED 120 and you can multiply by hand. One year is 21 times 120, which is AED 2,520. The six-year row removes two unpaid days from a span that includes two leap days, leaving 2,190 days, exactly six years of 365. That is 21 days for each of the first five years and 30 days for the sixth.

How does a partial year get paid?

Once the first year is complete, the portal says the worker is entitled to gratuity for fractions of a year in proportion to the time served. This page divides the service days by 365. Four years and 183 days is 4 plus 183/365 of a year, all of it inside the 21-day band, because it is still under five years. Five years and 183 days is five years at 21 days plus 183/365 of a year at 30 days. The split follows the years of service, not the calendar year you resign in.

Basic wage is the last basic wage, the one in the contract at the end, not an average of earlier years. If the basic wage changed last month, the whole sum uses the new figure. That is what the portal says. It can help or hurt depending on the direction of the change. Type the figure you were last entitled to, not the average you wish the law used.

What does the two-year cap mean here?

Article 51 says the end-of-service benefit in its entirety does not exceed two years' wage. The decree defines wage more widely than basic wage. The portal calculates the days on basic salary and then says the total shall not exceed the wage of two years. This page follows both sentences: the days are basic wage, and the ceiling is 24 months of basic plus the allowances you enter. With allowances left at zero, the ceiling is 24 months of basic. You would need a very long service before 21 days and then 30 days reach that ceiling. When they do, the result says the cap applied, and the figure stops there instead of keeping the raw product.

A payroll that divides a month by 30 will not match these fils. The decree does not publish the divisor. Monthly basic times 12, divided by 365, is the assumption on this page, printed under the form. Check it against the contract and the payslip before you treat a difference of a few dirhams as a dispute.

Do resignation and the savings scheme change the number?

Article 51 does not reduce the sum because the worker resigned. The older unlimited-contract cuts, one third or two thirds depending on the years, are not in this formula. The form therefore has no resignation switch. If someone quotes those fractions, ask which law they are using. A contract that started before 2 February 2022 can still have a slice under the previous statute. This page does not split history into two laws. It applies Article 51 to the dates you type.

The same portal page describes the voluntary savings scheme. After enrolment, traditional gratuity stops for that employee, and gratuity earned before enrolment is settled under the law. The employer's basic subscription is 5.83 percent of monthly basic salary when service is under five years, and 8.33 percent after that. Returns on the fund are not something this page can know. Set the last day to the day before enrolment if you want the traditional slice only, and take the fund balance from the provider.

Government expatriates are on a different scale, described on the portal's pension page as months of basic salary rather than 21 and 30 days. DIFC and ADGM publish their own employment rules. If the contract names one of those, do not use this total. The resignation letter page is where the last working day is counted from the notice clause, if you do not have that date yet. The resignation visa timeline then places the final-dues deadline and the grace period on those dates.

End of service calculator: how UAE end-of-service benefits are worked out

An end of service calculator on this page prices the gratuity line only. It uses the last basic wage, the start date, the last working day, and any unpaid leave you type. After 365 days of service, the days are 21 of basic wage for each of the first five years and 30 a year after that. The total stops at two years of wage. Housing and transport stay out of the day count. They can still sit inside that two-year ceiling when you type them.

Use this end of service calculator when the only question is Article 51. Unused annual leave, notice pay, and salary still unpaid are not in the figure. The final settlement calculator calls the same function and then adds those lines. This end of service calculator does not ask whether you resigned. Article 51 does not cut the sum for a resignation. It is general guidance, not legal advice, and it is not a payroll ruling.

What does this Gratuity Calculator count?

This Gratuity Calculator counts end-of-service gratuity for a full-time foreign worker under MOHRE rules for mainland employers. After one year, that is 21 days of the last basic wage for each of the first five years, then 30 days a year. Unpaid leave comes off the service period. The total stops at two years of wage. Dubai and Abu Dhabi do not have a separate mainland day count on the government portal. One day here is monthly basic times 12 divided by 365. It is general guidance, not legal advice.

Gratuity in UAE free zones

Mainland Dubai and mainland Abu Dhabi follow that federal formula under MOHRE rules for mainland employers. JAFZA's March 2023 rules point gratuity to the UAE Labour Law, calculated on basic salary after more than one year, or a higher sum if the contract says so. They do not print a different 21-day or 30-day band. DDA (Dubai Development Authority) says its sample uses the minimum terms in Federal Labour Law No. 33 of 2021, and that the sample has no legal merit. That page also says the zone is governed by the Dubai Technology and Media Free Zone Employment Regulations 2004, which I have not read in full. The longer read is the JAFZA and DDA gratuity note.

JAFZA's 11 September 2022 note says the new decree applies to onshore companies and all non-financial free zones. DMCC is a non-financial free zone. I have not read a DMCC gratuity schedule for this paragraph, so I am not quoting a DMCC day-count. The government portal's free-zone page, updated 12 August 2026, says people working in free zones are generally not governed by the UAE Labour Law and that each authority has its own rules, while the contract should still accord with the Labour Law. Those public pages do not say the same thing. Read the contract. Use Article 51 as the federal minimum the JAFZA and DDA pages point at, not as a substitute for the zone text.

DIFC and ADGM have their own employment laws. DIFC uses DEWS, its Employee Workplace Savings scheme, instead of this federal line. DEWS is not a clause of Federal Decree-Law No. 33 of 2021, and this page does not calculate it. If the contract names DIFC or ADGM, do not use this total.