🇦🇪Federal Decree-Law No. 33 of 2021

UAE End of Service Gratuity Calculator (Private Sector)

Accurately calculate your UAE end-of-service gratuity entitlement in AED according to the unified labour framework with exact daily pro-rata accrual, statutory daily wage formula, and the 2-year salary cap.

🇦🇪

UAE End of Service Gratuity Calculator

Federal Decree-Law No. 33 of 2021 (Private Sector)

🇸🇦Switch to Saudi Arabia Calculator
AED

Calculated strictly on the basic wage (excluding allowances such as housing and transport).

Statutory rule: Daily wage = Monthly basic salary ÷ 30

days

Excluded from the continuous service count

AED

Subtracted directly from final gratuity

💡 UAE Resignation Rule: Under UAE Federal Decree-Law No. 33 of 2021, resignation does NOT reduce gratuity in the private sector. Employees receive the full statutory award upon completing at least 1 continuous year.
Net End of Service GratuityEligible for Payout ✓
21,000.00AED
Qualifying Service Duration:3 yrs & 0 mos & 0 days
Total Effective Days:1096 days
Statutory Daily Wage (Basic ÷ 30):333.33 AED
Years 1 to 5 (21 days/yr):21,000.00 AED
Years 6+ (30 days/yr):0.00 AED
Official Reference:UAE MOHRE Portal ↗

Important Scope: This calculation applies to UAE private sector employees under Federal Decree-Law 33/2021. It does not apply to UAE nationals (covered by the federal/local pension authority), DIFC/ADGM financial free zones with independent workplace savings schemes, or government entities.

Core Rules of UAE End of Service Gratuity

21 يوماً / سنة

For each year of continuous service during the first five years.

30 يوماً / سنة

For each subsequent year beyond the first five years of service.

2-Year Cap

Total gratuity cannot exceed two years’ worth of basic salary.

End of service benefits in the UAE are strictly pegged to the **Basic Salary** stipulated in the MOHRE-registered employment contract. Allowances such as housing, conveyance, utilities, and performance bonuses are excluded.

Fractional years following the initial qualifying year are pro-rated down to the exact day by dividing the remaining days by 365.

Frequently Asked Questions (UAE EOSG)

How is end of service gratuity calculated under UAE Decree-Law 33 of 2021?▼

Gratuity is calculated on the last basic salary at 21 calendar days per year for the first 5 years, and 30 calendar days per year thereafter, provided at least one continuous year of service is completed.

Is gratuity reduced if the employee voluntarily resigns in the UAE?▼

No. Under Federal Decree-Law No. 33 of 2021, resignation does NOT reduce end of service gratuity in the private sector. The employee receives 100% of the entitlement after one year of service.

What is the statutory cap on end of service gratuity in the UAE?▼

UAE law explicitly caps the maximum cumulative gratuity at two years’ worth of basic wage (24 months of basic salary).

Are housing and transport allowances included in UAE gratuity calculations?▼

No. UAE gratuity is strictly calculated on basic wage only. All recurring or discretionary allowances (housing, transport, utilities) are legally excluded.

Does this calculator apply to DIFC or ADGM free zone employees?▼

No. Free zones with independent employment jurisdictions like DIFC (which operates the DEWS savings plan) and ADGM follow separate workplace regulations.

What is the statutory timeframe for paying end-of-service dues in the UAE?▼

Under Article 53 of the UAE Labour Law, employers must settle all terminal dues and wages within 14 calendar days from the employment end date.

🇸🇦

Looking for the Saudi Arabia Gratuity Calculator?

Calculate end of service benefits under Saudi Labor Law Articles 84 and 85 with actual wages.

Open Saudi Calculator →