End-of-service gratuity calculator for UAE.
Enter a salary and length of service to see what is payable under UAE rules, including how resignation changes the entitlement.
Gratuity here is calculated on basic salary only - allowances are excluded.
Part years count - enter 3.5 for three and a half years.
The full award is payable.
| Service band | Years | Days/yr | Amount |
|---|---|---|---|
| Years 0-5 | 5 | 21 | AED 35,000.00 |
| Accrued gratuity | AED 35,000.00 | ||
- Payable now
- AED 35,000.00
How UAE calculates it
- 21 days of basic salary for each of the first five years, then 30 days for each year after.
- Calculated on basic salary only, excluding housing, transport and other allowances.
- Total gratuity is capped at two years' pay.
- No entitlement before one year of continuous service.
- Resignation and dismissal are paid at the same rate. The old reduction for resigning before five years was repealed with the 1980 law.
- DIFC and ADGM employees fall under their own free-zone rules, not this calculation.
Rules as of October 2026. Confirm current entitlements with UAE Government portal, end of service benefits (Federal Decree-Law 33 of 2021, Article 51). This calculator is a guide, not legal advice.
Gratuity questions in UAE.
How is end-of-service gratuity calculated in UAE?
21 days of basic salary for each of the first five years, then 30 days for each year after.
Which salary is gratuity based on in UAE?
Basic salary only. Allowances such as housing and transport are excluded from the calculation.
Does resigning reduce gratuity in UAE?
No. The full entitlement is payable regardless of whether the employee resigns or is terminated.
Does Magnar calculate end-of-service automatically?
Yes. Magnar accrues end-of-service continuously per employee under UAE rules, so the liability is visible on the balance sheet before anyone leaves, and settles it correctly on the final pay run.
Gratuity across the GCC.
The rules differ by country - each calculator applies its own.
Run UAE payroll end to end
Magnar accrues end-of-service continuously, so the liability is never a surprise.
See it inside a real pay run.
Magnar accrues and settles end-of-service automatically, per country, per employee.