How to use it
- Enter your first and last working day, and any days of unpaid leave or absence.
- Enter your last monthly basic salary, without housing or other allowances.
- Read the gratuity and the breakdown. Resignation and termination give the same result.
The formula
Gratuity = Basic ÷ 30 × (21 × min(Years, 5) + 30 × max(Years − 5, 0))
Basic is the last monthly basic salary. The total cannot exceed 24 months of basic salary. You need at least one year of continuous service; part years after that are paid pro rata (Article 51).
Worked example
Your basic salary is AED 5,000 a month and you worked 6 years and 4 months.
Daily wage: 5,000 ÷ 30 = AED 166.67. First 5 years: 5 × 21 × 166.67 = AED 17,500.
The remaining 1 year and 4 months: 1.333 × 30 × 166.67 = AED 6,667. Total gratuity ≈ AED 24,167, whether you resigned or were terminated.
Assumptions
- Applies to foreign full-time employees in the private sector (Article 51).
- Daily wage is the monthly basic salary divided by 30.
- Days of unpaid absence are not counted as service.
- Since February 2022, resigning no longer reduces the gratuity.
Common mistakes
- Adding allowances to the salary. Only basic salary counts.
- Expecting gratuity after less than a year. The law requires one year of continuous service.
Questions
Is gratuity reduced if I resign?
No. Under Federal Decree-Law 33 of 2021, resignation and termination are treated the same for gratuity, once you have completed one year.
What is the maximum gratuity?
Two years of basic salary in total. The cap starts to bite after about 25½ years of service.
Estimates only. Your actual figures depend on the provider’s terms.