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End of Service Benefit Calculator in the UAE
How is the gratuity calculated by law?
- Calculated on the last basic wage only, excluding allowances (housing, transport, etc.).
- 21 days’ wage for each of the first five years, and 30 days for each subsequent year, with fractions of a year pro-rated.
- A minimum of one year of continuous service is required; unpaid absence days are excluded from the period.
- Resignation and termination earn the same gratuity under the current law (no reduction for resignation).
- Total gratuity may not exceed two years’ wage of the basic salary.
- Entitlements are settled within 14 days of the contract end date.
Scope of this calculator: for the private sector under the UAE federal Labour Law. It does not cover employees of the DIFC and ADGM, who are governed by separate regimes such as the savings scheme (DEWS) — a separate article is dedicated to them. It also excludes domestic workers governed by Federal Decree-Law No. 9 of 2022.
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This calculator is an informational guide and does not constitute legal advice; results may vary by contract and circumstances. For precise advice, please contact the firm.