Souk Weekly · Tools
Gratuity, counted.
Work out your UAE end-of-service gratuity in seconds. Basic salary in, severance out — the formula the spreadsheet in HR is quietly using.
Use your basic salary, not the total package — gratuity ignores allowances.
Estimated gratuity
AED 20,712
- Daily basic wage
- AED 329
- Days accrued
- 63 days
- First 5 yrs · beyond
- AED 20,712 · AED 0
Educational estimate based on the standard UAE Labour Law gratuity formula (21 days’ basic pay per year for the first five years, 30 days thereafter, capped at two years’ wage). Free-zone rules (e.g. DIFC/ADGM), unpaid leave, and dismissals for cause can change the result. Not legal or financial advice — confirm with your employer or a qualified adviser.
The questions everyone asks
- How is end-of-service gratuity calculated in the UAE?
- Gratuity is based on your basic monthly salary. You earn 21 days of basic pay for each of your first five years of service, and 30 days of basic pay for every year after that. The daily wage is your basic salary × 12 ÷ 365, and the total is capped at two years' wage.
- Is gratuity based on basic salary or total salary?
- Only the basic salary counts. Housing, transport and other allowances are excluded from the gratuity calculation, so your gratuity is usually lower than people expect from their total package.
- Do I still get gratuity if I resign?
- Under the UAE Labour Law in force since February 2022, an employee who completes at least one year of continuous service is entitled to full end-of-service gratuity whether they resign or are terminated — the old reductions for resignation under unlimited contracts no longer apply. Dismissal for gross misconduct is the main exception.
- What is the minimum service period to qualify?
- You must complete at least one full year of continuous service. No gratuity is payable for less than a year.
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