Methodology and sources
How our calculator works, which laws it follows, what we’ve confirmed, and what we’re still checking.
How the gratuity calculator works
The gratuity calculator follows these steps, in this order:
- It checks the job is covered: a foreign worker in a full-time, monthly-paid, private-sector job. For anything else it explains why, and shows no number.
- It counts every day from your first day to your last day of employment, counting both, and takes off days of unpaid leave. That’s your service.
- If your service is under 365 days, there’s no gratuity yet. It tells you the date you’ll reach one year.
- It turns days into years by dividing by 365. Every day counts, including 29 February.
- It works out your daily basic wage: your last basic monthly salary divided by 30.
- It adds 21 days’ wage for each of your first five years and 30 days’ wage for each year after that, part-years included.
- It applies the limit of 24 months’ basic salary, and warns you when the limit applies.
- It rounds only the final amount, to the nearest fils.
The rules and where they come from
Every rule comes from Federal Decree-Law No. 33 of 2021 unless the source column says otherwise.
- Confirmed
- We read the wording ourselves in an official source.
- Our reading
- The wording is confirmed; how we apply it is our reading, with no official worked example yet.
- Still being checked
- We haven’t been able to read an official source yet. The page says so wherever it matters.
- Covers private-sector jobs Article 3(1) Confirmed
- Not government, armed forces, police, security or domestic workers Article 3(2) Confirmed
- UAE nationals: pension law applies Article 51(1) Confirmed
- GCC nationals Not yet found Still being checked
- DIFC and ADGM have their own rules Federal Law No. 8 of 2004 (not yet read) Still being checked
- Savings scheme replaces gratuity after enrolment; earlier gratuity uses the basic salary on joining Article 51(8); Cabinet Resolution 96/2023, Art. 5(3) Confirmed
- Part-time: a share of the full-time amount Article 52; Cabinet Resolution 1/2022, Art. 30 Confirmed
- At least one year of continuous service Article 51(2) Confirmed
- 21 days a year for years 1 to 5, then 30 days a year Article 51(2) Confirmed
- Last basic wage, no allowances Articles 1 and 51(5) Confirmed
- A year is 365 days and a month is 30 days Article 67 Confirmed
- Daily wage = monthly basic ÷ 30 Article 67 Our reading
- Service = every day, first to last, ÷ 365 Articles 51(3) and 67 Our reading
- Part-years count in proportion Article 51(3) Confirmed
- Unpaid leave isn’t service Articles 51(4) and 33(2) Confirmed
- Notice period worked counts as service Article 43(2) Confirmed
- Limit of two years’ wage Article 51(6) Confirmed
- Limit read as 24 months’ basic salary Article 51(6) Still being checked
- Same calculation if you resign Article 51 Confirmed
- Dismissal doesn’t remove gratuity Articles 39(1)(g), 44 and 51 Confirmed
- Previous labour law repealed Article 73(1) Confirmed
- Old unlimited contracts: employer may use the previous law’s rules Article 68(3); previous law not yet read Still being checked
- Lawful deductions allowed, and what they can be Article 51(7); Cabinet Resolution 1/2022, Art. 29 Confirmed
- Paid within 14 days Article 53 Confirmed
- A better contract applies Article 65(1) Confirmed
- Rounding to the nearest fils at the end Not stated in the text we read Still being checked
What we’re still checking
We checked every rule against the official texts of the labour law, its executive regulations and the savings-scheme resolution on 12 November 2026. A few points remain open, and MOHRE’s own calculator couldn’t be reached from where we work. Where a point is open, we say so on the page, next to the result and in the guides, rather than present our reading as fact.
Still being checked
- The previous labour law (Federal Law No. 8 of 1980), which employers may still use for unlimited contracts made under it (Article 68(3)).
- The law on financial free zones, and the DIFC and ADGM employment rules.
- How the limit of “two years’ wage” should be read, since the law defines “wage” as basic pay plus allowances (Articles 1 and 51(6)).
- The position of GCC nationals.
- A cross-check of our worked examples against MOHRE’s calculator, which we couldn’t reach.
Sources
We use official texts first. The English text of UAE law is a translation; the Arabic text prevails.
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations Official English text. The Arabic text prevails. Read: Articles 1, 3, 33, 39, 43, 44, 45, 47, 51, 52, 53, 65, 67, 68 and 73.
- UAE Government portal: end-of-service benefits in the private sector Official guidance, updated 15 October 2026. Read: Whole page.
- UAE Government portal: terminating employment contracts Official guidance, updated 12 August 2026. Read: Sections on dismissal, leaving without notice and arbitrary dismissal.
- Cabinet Resolution No. 1 of 2022 (executive regulations of the labour law) Official English text. Read: Articles 29 and 30.
- Cabinet Resolution No. 96 of 2023 (alternative end-of-service savings scheme) Official English text. Read: Whole resolution.
- Federal Law No. 8 of 2004 on Financial Free Zones Not yet checked.
Rules last checked: 12 November 2026
How we test the calculator
Before writing any code, we worked six examples by hand from the rules. They cover under one year, three years, exactly five years, seven years and three months, unpaid leave, and the limit.
The calculator has to give exactly those answers in an automated test suite, along with tests for the one-year boundary, leap days, the limit’s break-even point and every situation we can’t cover. The worked examples printed on our pages are checked by the same tests.
Found a mistake?
If a number, rule or date looks wrong, please report a mistake. We check every report against the law text.