Free tool · payroll
End-of-service gratuity, worked out.
The UAE Labour Law formula on the last basic salary, with the cap and the one-year rule applied, plus the figure your books should accrue every month.
Basic salary only. Allowances such as housing and transport do not count.
Is the employee a UAE national?
Under the hood
How gratuity is calculated
- 1
One year first
Gratuity is due to a full-time employee who completes at least one year of continuous service. Part years after that count pro rata.
- 2
21, then 30 days
21 days' basic wage for each of the first five years, and 30 days' basic wage for each year after (Federal Decree-Law No. 33 of 2021, Art. 51).
- 3
Limits
It is based on the last basic wage, excludes days of unpaid absence, and cannot exceed two years' wage in total.
- 4
When it is paid
All end-of-contract dues, including gratuity, are payable within 14 days of the contract ending (Art. 53). Accruing it monthly means the cash is never a surprise.