Estimate your end-of-service gratuity under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021).
Under the UAE Labour Law, Federal Decree-Law No. 33 of 2021 (in force since 2 February 2022, Article 51), a full-time employee in the private sector who completes at least one year of continuous service is entitled to end-of-service gratuity when the employment ends. It is calculated on the employee's last basic wage, not the total salary.
| Basic salary | Service | Calculation | Gratuity |
|---|---|---|---|
| AED 4,500 | 3.5 years | Daily wage AED 150 × (3.5 × 21 = 73.5 days) | AED 11,025 |
| AED 6,000 | 7 years | Daily wage AED 200 × (5 × 21 + 2 × 30 = 165 days) | AED 33,000 |
Under the current law the gratuity is the same whether the employee resigns or the employer ends the contract. The reductions for resignation that applied to unlimited contracts under the old law (Federal Law No. 8 of 1980) no longer apply. If your contract started before February 2022, ask MOHRE or a legal adviser whether any of your earlier service is treated differently.
No. Gratuity is only due after at least one year of continuous service.
On the last basic salary. Allowances are excluded unless the employment contract includes them.
Not under the current UAE Labour Law. Since 2 February 2022 the resignation reductions of the old law no longer apply; the 21-day and 30-day rules are the same for resignation and termination.
Yes. The total end-of-service gratuity cannot exceed two years' wage.
End-of-service dues, including gratuity, must be paid within 14 days of the end of employment.
Last reviewed: October 2026 · Source: UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, Article 51; Ministry of Human Resources and Emiratisation (MOHRE). This guide is general information, not legal advice.
