UAE Expat Gratuity Calculator 2026

How is UAE gratuity calculated?

Under Article 51 of Federal Decree-Law No. 33 of 2021, a foreign worker who works full time and has completed one year or more of continuous service is entitled to an end-of-service gratuity calculated on the basic wage only, excluding allowances. For UAE nationals the same article refers to the pensions and social security legislation.

Formula:
Daily wage = monthly basic wage ÷ 30
First 5 years: 21 days per year
After 5 years: 30 days per year
Part-years are paid in proportion once the first year is complete; days of unpaid absence are not counted.

Minimum service: one full year of continuous service.
Cap: the total cannot exceed two years of wage (24 months of basic wage).
Resignation: the formula is the same whether the worker resigns or the employer ends the contract.

Example: basic wage AED 10,000 a month with 7 years of service:
Daily wage = 10,000 ÷ 30 = AED 333.33
First 5 years: 333.33 × 21 × 5 = AED 35,000
Remaining 2 years: 333.33 × 30 × 2 = AED 20,000
Total: AED 55,000

The calculator covers full-time work. Part-time and job-sharing contracts are paid in proportion to contract hours under Article 30 of the Executive Regulations (Cabinet Resolution No. 1 of 2022). Tables, more worked examples and the claim procedure are in the UAE end-of-service gratuity guide.