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UAE Gratuity & End-of-Service Benefits
Estimate traditional gratuity and final settlement in AED for expatriate private-sector workers under the federal UAE Labour Law, with a one-page PDF and a bulk Excel template containing formulas.
Employee and service details
Use the last monthly basic salary for gratuity. Notice compensation uses the last total wage entered.
1Employment scope
2Service and wage
3Other final-settlement items
Traditional gratuity formula
- No traditional gratuity where continuous qualifying service is less than one year.
- 21 days of last basic salary for each year of the first five years.
- 30 days of last basic salary for each year after the first five years.
- Fractions of a year are proportionate after completing one year.
- Unpaid absence is excluded from qualifying service.
- Total gratuity is capped at two years of wage.
Other EOSB components
- Unused annual leave at termination is calculated on basic salary, subject to the confirmed balance.
- Notice compensation is based on the wage for the unserved notice period.
- Outstanding salary and contractual dues may form part of final settlement.
- Amounts lawfully owed by the worker may be deducted.
- Final wages and entitlements are generally payable within 14 days of termination.
- Resignation does not apply the old-law gratuity reductions under this traditional post-2022 model.
Relevant UAE legal framework
| Provision | Application in this tool |
|---|---|
| Federal Decree-Law No. 33 of 2021, as amended, Article 51 | Expatriate full-time traditional gratuity: one-year threshold, basic-salary basis, unpaid-absence exclusion, proportional fraction, 21/30-day formula and two-year wage cap. |
| Article 52 | Addresses end-of-service entitlement on death and related repatriation/estate matters; case-specific treatment requires review. |
| Article 53 | Payment of wages and end-of-service entitlements within 14 days after the contract ends. |
| Cabinet Resolution No. 1 of 2022, Article 30 | Part-time or other-work-model gratuity uses contracted annual hours divided by comparable full-time annual hours. |
| Cabinet Resolution No. 96 of 2023 and Ministerial Resolution No. 668 of 2023 | Voluntary alternative Savings Scheme. Traditional accrual stops after enrolment; prior accrued gratuity is settled under the law. |
| Federal Decree-Law No. 33 of 2021, annual leave provisions and implementing rules | Unused annual leave compensation at termination is calculated on basic salary, subject to actual balance and applicable records. |
Scope and exclusions
This calculator is designed for expatriate workers under the federal private-sector labour regime. UAE nationals are generally subject to pension/social-security legislation. Government personnel, domestic workers, DIFC/ADGM employment, special free-zone rules, Savings Scheme periods, temporary service below one year, commission-heavy remuneration, disputed unpaid leave, unlawful termination compensation and court-ordered amounts require separate analysis.
Legal disclaimer: This is an educational estimate, not a Ministry of Human Resources and Emiratisation determination, legal opinion, payroll record or court award. Confirm dates, unpaid leave, basic salary, total wage, leave balance, notice obligations, deductions and applicable employment regime before payment or reliance.
UAE Gratuity & EOSB Summary
AED • The Business Explore
Total estimated settlementAED 0.00
Service period–
Basic salaryAED 0.00
Final gratuityAED 0.00
Employment model–
Termination–
Gratuity days0
| Settlement component | AED value |
|---|
Educational estimate only.
Confirm the applicable UAE employment regime and employer records before payment or reliance.
