UAE · FEDERAL PRIVATE SECTOR

UAE Gratuity Calculator

Estimate traditional end-of-service gratuity under the federal private-sector rules.

For full-time foreign employees covered by UAE Federal Decree-Law No. 33 of 2021, under the traditional gratuity scheme. Excludes DIFC, ADGM, government, domestic workers, pension-covered nationals, part-time work and alternative end-of-service savings schemes. Enter eligible service excluding unpaid absence. Confirm your regime and records with HR. This is an estimate, not a legal entitlement.

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AED · UAE federal estimate
AED
years

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An estimate under the selected federal regime, not a guaranteed legal entitlement.

Read the formula and assumptions below before making a decision.

UAE Gratuity: worked example

This is an illustrative scenario using the default inputs, not your personal result. It assumes the stated federal employment scope and eligibility conditions apply.

Example inputs
InputExample value
Last monthly basic salary (AED)AED 8,000.00
Eligible service in years (excluding unpaid absence)5.5 years

Estimated gratuity: AED 32,000.00

  • First five years: AED 28,000.00
  • Later years before overall cap: AED 4,000.00

Before you use this estimate

Confirm federal private-sector coverage, the traditional scheme, last basic wage and eligible service excluding unpaid absence. Do not substitute gross pay for basic pay.

Does this gratuity formula apply to DIFC or ADGM employment?

No. The tool excludes those regimes, government and domestic employment, pension-covered workers and alternative savings schemes. Use the rules and records for your actual arrangement.

How the calculation works

Under one eligible year: no traditional gratuity. Otherwise basic salary / 30 × (21 × first five years + 30 × later years), capped at 24 months of basic salary.

Assumptions & limitations

For full-time foreign employees covered by UAE Federal Decree-Law No. 33 of 2021, under the traditional gratuity scheme. Excludes DIFC, ADGM, government, domestic workers, pension-covered nationals, part-time work and alternative end-of-service savings schemes. Enter eligible service excluding unpaid absence. Confirm your regime and records with HR. This is an estimate, not a legal entitlement.

Use the result thoughtfully

Try a second scenario to see how a change in costs, timing or contributions affects the result. Keep all amounts in one currency and use consistent periods. Confirm important figures against your own records before acting.

Official sources

UAE Federal Decree-Law No. 33 of 2021 — articles 29 (leave), 43 (notice) and 51 (traditional gratuity), as relevant to this tool. UAE Government: terminating employment contracts.

Last reviewed: 3 November 2026 · Method and example review by CashOrbits.
Full precision is used for calculations; displayed amounts are rounded.