About UAE Gratuity Calculator

Every calculation on this site traces back to a specific article of UAE federal law. We do not estimate, round informally, or infer rules from forum posts or other calculator sites. The legal basis for the current gratuity, leave and overtime rules is:

• Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the current UAE Labour Law), Articles 29, 51 and 53.
• Cabinet Resolution No. 1 of 2022, implementing regulations for Federal Decree-Law No. 33 of 2021.
• Federal Decree-Law No. 9 of 2022, governing domestic workers, used by the MOHRE calculator's domestic worker mode.
• Federal Decree-Law No. 57 of 2023, governing the post-2023 GPSSA pension contribution scheme used by the salary calculator.
• Guidance published by MOHRE (the Ministry of Human Resources and Emiratisation) and u.ae, the UAE government's official portal.

The gratuity calculator UAE tool and the MOHRE gratuity calculator both use the same rules: gratuity is based on basic salary only (allowances such as housing and transport are excluded), the daily rate is basic salary divided by 30, employees earn 21 days per year of gratuity for each of the first 5 years of service and 30 days per year from the 6th year onward, and the total is capped at 24 months of basic salary. Since February 2022, resignation and termination pay the same amount — the old limited/unlimited contract distinction was abolished, and the ⅓/⅔ reduction rule for resignation under 5 years now applies only to contracts that predate the new law.

The overtime calculator applies the statutory ×1.25 multiplier for ordinary overtime and ×1.5 for hours worked between 22:00 and 04:00, on rest days or on public holidays, subject to the legal ceiling of 2 extra hours per day. The leave salary calculator pays out unused annual leave on basic salary at termination, accruing 30 days per year after 1 year of service (2 days per month between 6 and 12 months). The salary calculator applies 0% UAE income tax and, where relevant, the GPSSA pension contribution rate that matches the employee's actual registration date — legacy 5%/12.5% for those registered before 31 October 2023, or the new 11%/15% (+2.5% government) scheme for those registered from that date onward.

UAE labour law has changed substantially in recent years — most significantly with the 2022 overhaul that replaced Federal Law No. 8 of 1980. When a rule changes, we update the calculation engine, its automated tests, the affected calculator page and this page together, so the code, the published figures and the written explanation never drift apart. The date in the footer of every page reflects when the content was last reviewed against the sources listed below.

UAE Gratuity Calculator is a calculation tool, not a law firm and not a substitute for professional advice. It is not affiliated with MOHRE, the UAE government or any other official body. The figures produced are estimates based on the general rules of federal law; they do not account for every possible variation in an individual employment contract, free zone regulation or collective agreement, and they are not a guarantee of what an employer, a court or MOHRE will ultimately decide in a specific case. Before relying on any figure for a real financial or legal decision, confirm it directly with MOHRE or a licensed UAE labour lawyer — see our full disclaimer for details.

We also do not collect personal data to produce these estimates: every calculation runs entirely in your browser. Read exactly what that means for you in our privacy policy.