
UAE Gratuity Calculator 2026: Free Tool, FDL 33/2021 Compliant
- Mayank Sharma

- 4 days ago
- 2 min read
End-of-service gratuity is one of the most-asked questions UAE HR teams field. We built this calculator on the Federal Decree-Law 33 of 2021 formula. It's free, takes no sign-up, and runs the math the same way MoHRE does.
Enter your basic salary (not total package) and years of service. The calculator does the rest. For complex situations, consult a qualified HR advisor.
How this calculator works
This calculator applies the formula in Federal Decree-Law No. 33 of 2021 (the UAE Labour Law). The formula is unchanged in 2026. What has changed is how MoHRE enforces compliance — particularly around basic-vs-allowance salary structure manipulation.
First five years: 21 days of basic wage per year of service
Years six and beyond: 30 days of basic wage per year of service
Cap: total gratuity cannot exceed 24 months' basic wage
Payment deadline: within 14 calendar days of contract termination
Only the contractual basic salary counts. Allowances — housing, transport, education, utilities, mobile, fuel — are excluded under FDL 33/2021.
What's not covered by this calculator
This is a quick estimator. It does not handle: end-of-service savings scheme contributions (Cabinet Resolution 96 of 2023, voluntary opt-in), Emirati employees under GPSSA pension, part-time and fixed-term contracts (different pro-ration rules), or challenges to artificially low basic-salary structures. For complex situations, get qualified HR or legal advice.
If you're a UAE founder running gratuity exposure across a workforce of 50+ employees, the math gets complicated fast. We run gratuity audits quarterly. Talk to a partner — first call free.
Frequently asked questions
Is gratuity calculated on basic salary or total salary in the UAE? Gratuity is calculated on the last drawn basic wage only. Allowances such as housing, transport, education, utilities, mobile, and other in-kind benefits are statutorily excluded under Federal Decree-Law 33 of 2021.
What is the gratuity formula in the UAE for 2026? 21 days of basic wage per year for the first five years. 30 days per year for service beyond five years. Capped at 24 months' basic wage.
Do I get full gratuity if I resign? Yes. Under FDL 33 of 2021, employees who resign are entitled to full gratuity, provided they have completed at least one year of continuous service.
When must my employer pay gratuity? Within 14 calendar days of contract termination, alongside all other end-of-service entitlements.
Are Emiratis entitled to gratuity? No. Emirati employees fall under GPSSA pension contribution rules. Contributions are made monthly to the General Pension and Social Security Authority.
Disclaimer: This calculator is a free tool provided by element MEA for educational purposes. It does not constitute legal advice. Actual gratuity entitlements may vary based on contract specifics, free-zone regulations, employer policies, and court interpretations. For binding guidance, consult an HR consultant or labour lawyer registered in the UAE.
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