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MOHRE Decree-Law No. 33 of 2021 (Article 51)

UAE Labour Law Gratuity Calculator

Calculate your exact End of Service Benefits (EOSB) under the updated UAE Labour Law. Accurately prorates days worked across the 21-day tier (first 5 years) and the 30-day tier (subsequent years).

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*Important: Enter Basic Salary only (excluding housing, transport, or other allowances).

Article 51 Rules & Formulas

  • Under 1 Year (< 365 Days): No statutory gratuity is owed if employment terminates before completing 1 full year.
  • First 5 Years (1 to 1,825 Days): 21 days' basic wage for each year of service, prorated for fraction of the year.
  • Beyond 5 Years (> 1,825 Days): 30 days' basic wage for each additional year of service, prorated.
  • Statutory Cap: The total severance benefit cannot exceed the aggregate of 2 years' basic wage.
MOHRE Legal Framework

UAE End of Service Gratuity Rules: Article 51

A definitive legal guide to calculating severance pay, basic salary rules, and employee rights under Federal Decree-Law No. 33 of 2021.

Statutory Gratuity Tiers Under Article 51

First 5 Years of Service
21 Days Basic Wage / Year

Daily wage = (Basic Monthly Salary × 12) / 365 days.

Beyond 5 Years of Service
30 Days Basic Wage / Year

Each year above 5 years yields 30 calendar days of basic pay.

Important Legal Protection: Under the unified labour law reforms, the old distinction between limited and unlimited contracts with respect to resignation reductions has been abolished. All qualifying employees who complete at least one continuous full year of employment are entitled to full prorated gratuity.

How is end of service gratuity calculated in the UAE?
Under Article 51 of Federal Decree-Law No. 33 of 2021, full-time employees with over 1 year of continuous service receive: 21 days basic salary for each of the first 5 years, and 30 days basic salary for each subsequent year, prorated by exact calendar days worked.
Is UAE gratuity calculated on basic salary or total gross salary?
Gratuity is calculated strictly based on the employee's last drawn basic wage. Allowances such as accommodation, transportation, phone, or performance bonuses are legally excluded from the severance base.
Is there a statutory maximum cap on UAE gratuity?
Yes. Article 51 (5) of the UAE Labour Law specifies that the total end-of-service gratuity payout shall not exceed two years' basic salary (24 months).
When must the employer pay the end-of-service settlement?
Under Article 53, the employer is legally obligated to settle all end-of-service entitlements and unused leave encashments within 14 calendar days from the date of employment termination.

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Automated analysis can make mistakes. Please verify critical figures with official UAE regulatory authorities (FTA, DLD, MOHRE). Not official legal or tax advice.