UAE Gratuity Calculator 2026 (MOHRE)
Calculate your UAE end-of-service gratuity instantly based on the latest MOHRE formula. Enter your basic salary, service dates, contract type, and reason for leaving to get an accurate breakdown in AED.
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How UAE Gratuity Calculation Works Under MOHRE
End-of-service gratuity in the UAE is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. Under this law, every employee who completes at least one year of continuous service is entitled to a gratuity payment upon leaving their employer. The Ministry of Human Resources and Emiratisation (MOHRE) oversees the enforcement of these provisions for mainland employees.
The gratuity is calculated based on the employee's last drawn basic salary only. Allowances such as housing, transport, commission, and bonuses are excluded. For the first five years of service, the employee earns 21 calendar days' basic salary per year. For each additional year beyond five, the entitlement increases to 30 calendar days' basic salary per year. The total gratuity cannot exceed the equivalent of two years' total basic salary, regardless of how long the employee has served.
Gratuity for Resignation vs Termination
The reason for leaving employment significantly affects the gratuity amount, particularly for employees on unlimited contracts under the old labour law. If you resign from an unlimited contract before completing five years, your gratuity may be reduced: employees with one to three years of service receive one-third, those with three to five years receive two-thirds, and those with five or more years receive the full amount. However, under the new 2022 labour law, all contracts are now treated as limited (fixed-term), and employees who resign after completing one year of service are entitled to the full gratuity without any deduction.
If you are terminated by your employer (for reasons other than gross misconduct under Article 44), you are entitled to the full gratuity regardless of your service duration, provided you have completed at least one year. Similarly, when a limited contract reaches its natural end date, the employee receives the full gratuity.
Free Zone Gratuity Rules
Employees working in UAE free zones such as DIFC, ADGM, JAFZA, and other designated zones are generally covered by the same gratuity principles, though each free zone authority may have its own employment regulations. DIFC employees, for example, follow the DIFC Employment Law which mirrors the federal gratuity formula. ADGM has its own employment regulations that also provide for end-of-service gratuity. The core calculation method (21 days for the first five years, 30 days thereafter) remains consistent across most zones, but employees should verify the specific rules of their free zone authority for any variations.
UAE Gratuity Calculator Tips for 2026
When using this calculator, enter only your basic salary as stated in your employment contract, not your total package. Make sure your start date is accurate, as even a few months can affect the final amount. If you are unsure about your contract type, check with your HR department or review your employment contract. Remember that the 2022 labour law reforms converted all unlimited contracts to limited contracts, so most employees now fall under the limited contract rules. For disputes or clarification, contact MOHRE directly or use the official MOHRE mobile application to verify your entitlements.
Frequently Asked Questions
How is gratuity calculated in the UAE?
UAE gratuity is calculated based on your last drawn basic salary. For the first five years of service, you earn 21 calendar days' salary per year. For each year beyond five, you earn 30 days' salary per year. The daily wage is your monthly basic salary divided by 30. The total gratuity cannot exceed two years' total basic salary.
Do I get gratuity if I resign in the UAE?
Yes. Under the new UAE labour law (2022), employees on limited contracts who resign after completing one year of service receive the full gratuity without any deduction. For employees still on legacy unlimited contracts, resignation before five years may result in a reduced gratuity (1/3 for 1-3 years, 2/3 for 3-5 years).
What is the maximum gratuity in the UAE?
The maximum gratuity an employee can receive is capped at the equivalent of two years' (24 months) of basic salary, regardless of how many years they have worked. This cap is specified in the UAE Labour Law.
Is gratuity calculated on basic salary or total salary?
Gratuity is calculated only on the basic salary as stated in the employment contract. Allowances such as housing, transport, phone, commission, and performance bonuses are not included in the gratuity calculation.
Do free zone employees get gratuity?
Yes. Employees in most UAE free zones (including DIFC, ADGM, JAFZA, and others) are entitled to end-of-service gratuity. The calculation method is generally the same as the federal formula, though specific free zone regulations may apply. Check your free zone authority's employment law for details.
What happens to gratuity if I am terminated?
If you are terminated by your employer (not for gross misconduct under Article 44), you receive the full gratuity amount without any reduction, provided you have completed at least one year of service. Termination for gross misconduct may result in forfeiture of gratuity.
How many years do I need to work to get full gratuity?
Under the current UAE labour law, you need to complete at least one year of continuous service to be eligible for gratuity. For limited contracts, one year of service entitles you to the full calculated amount. For legacy unlimited contracts, five or more years of service ensures full gratuity upon resignation.