If you’re resigning or being let go, your end-of-service gratuity isn’t negotiable — it’s set by federal law. Since 2022 the rules changed in employees’ favour, but most people still calculate it using the old, less generous formula.
Interactive Calculator
Your gratuity, from your actual contract dates
Leave last working day blank to use today. Use your basic salary only — not your total package.
The current rule (since February 2022)
Under Federal Decree-Law No. 33 of 2021, gratuity is calculated on your basic salary only:
- 21 days’ basic salary per year for each of your first 5 years of service.
- 30 days’ basic salary per year for every year beyond 5.
- Total gratuity is generally capped at 2 years’ total salary.
The big change: resignation no longer reduces it
Before 2022, resigning before completing 5 years cut your gratuity on a sliding scale — sometimes to nothing before year 1. That rule was abolished. Whether you resign or are terminated, you’re entitled to the full calculation above for every completed year of service.
Common mistakes to avoid
- Calculating on total salary instead of basic salary — this overstates the figure significantly if allowances make up a large share of your pay.
- Assuming resignation reduces your entitlement — it no longer does, for completed years of service under the new law.
- Forgetting the 2-year total salary cap on very long tenures.
If your employer disputes the calculation or delays payment, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE).
Common questions
Which figure on my contract is the “basic salary”?
The line explicitly labelled basic salary, before housing, transport, phone or any other allowance is added. If your contract shows only a single lump-sum figure with no breakdown, that whole figure is generally treated as basic — which works in your favour.
Do partial years count?
Yes, once you’ve completed one full year of service. Beyond that first year, gratuity accrues pro-rata — 6.5 years earns more than 6, as the worked example above shows. Under one year of continuous service, there’s generally no gratuity entitlement.
Does my probation period count toward service?
Yes. Once you pass probation, that time counts as part of your continuous service for gratuity purposes — it isn’t deducted.
When should my gratuity be paid?
End-of-service entitlements are due promptly on termination of the contract, alongside your final salary and any unused leave. Delay is a common complaint and is one of the things MOHRE handles — don’t accept indefinite postponement as normal.
Do DIFC and ADGM follow these rules?
No. DIFC and ADGM are separate jurisdictions with their own employment regimes, and DIFC in particular operates a workplace savings scheme rather than a traditional end-of-service payment. If you’re employed in either, the figures on this page won’t apply to you — check your own jurisdiction’s rules.
Last verified 21 August 2026, based on Federal Decree-Law No. 33 of 2021 (effective February 2, 2022). Estimates only — confirm your specific entitlement with MOHRE or a labour lawyer, especially for unlimited contracts predating the law or DIFC/ADGM employment, where separate rules apply.
Related Guides
- Jobs & Careers — notice periods, probation rules, and what happens if you resign without serving notice
- Money Saving Guide — the 50/30/20 budgeting rule for making the most of your salary
- Banking — choosing a bank and avoiding account issues while employed
- Cost of Living & Rights — the full hub, including rent, visas, banking and schooling