End-of-Service Gratuity Calculator UAE
Calculate your UAE end-of-service gratuity under Federal Decree-Law No. 33 of 2021 Article 51. 21 and 30-day rules, 2-year cap, and 14-day payment deadline.
This tool enforces Federal Decree-Law No. 33 of 2021, Article 51 & 53. Based on official UAE government sources.
View Official Government Portal Source (→)How This Calculation Works: Plain-English Legal Breakdown
Under Article 51 of Federal Decree-Law No. 33 of 2021, the end-of-service gratuity for private sector employees is computed exclusively on the last drawn basic wage:
- Years 1 through 5: 21 days' basic wage for each completed year of service.
- Years exceeding 5: 30 days' basic wage for each additional completed year.
- Pro-rata accrual: Fractions of a year are calculated proportionally once the first year of service is completed.
Worked Example: 7 Years of Service at AED 12,000 Basic Wage
1. Daily Basic Wage: AED 12,000 / 30 = AED 400.00 / day
2. First 5 Years: 5 years × 21 days × AED 400 = AED 42,000.00
3. Remaining 2 Years: 2 years × 30 days × AED 400 = AED 24,000.00
4. Total Gratuity: AED 42,000 + AED 24,000 = AED 66,000.00
5. Maximum Cap Check: 2 years of basic wages = 24 × AED 12,000 = AED 288,000. (Since AED 66,000 is well below AED 288,000, no cap applies).
Who Is NOT Covered By This Law?
Employees working in financial free zones with independent employment jurisdictions (such as DIFC which operates the DEWS savings scheme, and ADGM), domestic workers governed under Federal Decree-Law No. 9 of 2022, and UAE national employees enrolled in the GPSSA federal pension scheme.
Edge Cases Handled
Continuous service under 365 days yields 0 gratuity. Days taken as unpaid leave are deducted from total service duration. The final aggregate payout is legally capped at 2 years of basic wages (24 times monthly basic wage).
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