Hubb People · Free calculator

UAE gratuity calculator

Work out an employee's end-of-service gratuity under current UAE law — in seconds.

The details

How it's worked out
21 days' basic pay per year for the first 5 years, then 30 days per year after — payable after 1 year, capped at 2 years' basic pay. Based on Federal Decree-Law No. 33 of 2021 (mainland).

Estimated gratuity

AED 21,000

≈ 63 days of basic salary

Managing gratuity across a whole team?

Hubb People keeps service dates, leave and end-of-service accurate for everyone — no spreadsheets. Leave your details and we'll show you.

Indicative estimate only, based on mainland UAE rules (Federal Decree-Law No. 33 of 2021). Free-zone (e.g. DIFC/ADGM) schemes and individual contracts can differ — always confirm the final figure against current law and the employee's contract.

How UAE gratuity works

End-of-service pay, without the guesswork

Gratuity is a statutory end-of-service benefit for employees on the UAE mainland. The maths is simple once you know the rules — and getting it wrong is a common, avoidable dispute.

  • One year to qualify. No gratuity is payable until an employee completes a full year of continuous service.
  • Basic salary only. It's calculated on basic pay — housing, transport and other allowances are excluded.
  • 21 days, then 30. 21 days' basic pay per year for the first five years, then 30 days per year after.
  • Capped at two years' pay. Total gratuity can never exceed two years of the employee's basic salary.

More free HR tools: the turnover cost calculator and the leadership assessment.

hubb — how it accrues
Years 1–5 21 days / year
Year 6 onwards 30 days / year
Lifetime cap 2 years' basic pay

How it works

1

Enter basic salary

The monthly basic figure only — gratuity ignores allowances.

2

Add length of service

Years and any extra months of continuous employment.

3

Get the estimate

We apply the current UAE formula and the two-year cap instantly.