How the UAE gratuity calculator works
This calculator applies the formula from Federal Decree-Law No. 33 of 2021: 21 days of basic wage per year for the first 5 years of service, plus 30 days per year beyond that, capped at 2 years' basic wage. It uses your last drawn basic salary — not gross — divided by 30 to get the daily rate, then multiplied by total gratuity days accrued.
Unpaid leave days are subtracted from your service period before gratuity days are calculated. Partial years are pro-rated proportionally. Under the current law, resignation and termination receive the same gratuity — the old penalty for resigning early has been removed for new-style contracts.
The calculator gives an estimate for mainland private-sector employees. DIFC, ADGM, and government employees may follow different rules. For the full breakdown of eligibility, formula tiers, salary base, worked examples, and how to audit an employer worksheet, read the complete gratuity guide.