UAE Gratuity Calculator 2026: End of Service Explained

Finding an accurate UAE gratuity calculator is critical when you are preparing to resign or if your contract is being terminated. Understanding exactly how much end of service benefit you are owed prevents disputes with your employer and helps you plan your next move. The UAE Labour Law guarantees this payment, but the math confuses many expats.

To make this simple, we built a free, up-to-date Gratuity Calculator. It uses the latest Federal Decree-Law No. 33 of 2021 to instantly determine your precise payout based on your basic salary and years of service.

How is your gratuity calculated in 2026?

Your end of service payout depends entirely on your basic salary, not your total package. This is the most common mistake workers make. If your total salary is AED 10,000 but your basic is AED 6,000, your gratuity uses the AED 6,000 figure.

According to the law, workers who complete one to five years of service are entitled to 21 days of basic salary for each year. If you exceed five years, the rate increases to 30 days of basic salary for every additional year. Partial years are prorated exactly to the day.

Does resignation type affect your payout?

• Unlimited contracts: Under the new legislation, there is no longer a gratuity reduction if you resign voluntarily on an unlimited contract, provided you have passed the one-year mark.
• Termination: If you are terminated by the company (for non-disciplinary reasons), you receive your full accumulated gratuity.
• Less than one year: If you leave before completing a full continuous year of service, you are legally entitled to nothing.

If you are unsure about your contract type, you should review our UAE Labour Law Guide before sending your resignation email.

What about unpaid leave and absences?

Any days taken as unpaid leave must be deducted from your total years of service before running the final calculation. This is why checking your HR records before your final month is highly recommended.

Sick leave and paid annual leave, however, are fully counted toward your service period. Our calculator automatically handles these complexities so you do not have to guess.

What to do next

First, input your basic salary and start dates into the Gratuity Calculator to see your exact number. Once you know your financial runway, use the CV Maker to update your resume and start checking the latest open jobs in the UAE.