Free tool
UAE gratuity calculator: end of service benefits
Enter the first and last working day and the last monthly wage, and get an instant end of service estimate under the UAE Labour Law, or under the Saudi Labor Law on the second tab, with the calculation step by step.
Calculator
An estimate, not legal advice. The calculator follows the general text of the law. It does not account for your contract terms, court rulings or alternative savings schemes. Check with the authority or a lawyer before any settlement.
How UAE gratuity is calculated
Reference: Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations.
- A foreign full-time worker qualifies after one year of continuous service.
- 21 days' wage for each of the first five years.
- 30 days' wage for each year after the first five.
- Parts of a year count in proportion to the time served.
- The basis is the last basic wage, without allowances. The daily wage here is the monthly basic divided by 30, because the law counts a month as 30 days and a year as 365.
- Days of unpaid absence do not count as service.
- The total may not exceed two years' wage, that is 24 months of basic wage.
Worked example: 7 years on a basic wage of AED 10,000
- Daily wage: 10,000 ÷ 30 = AED 333.33
- First five years: 5 × 21 = 105 days
- Next two years: 2 × 30 = 60 days
- Total: 165 days, so 165 × 333.33 = AED 55,000.00
For 3 years on the same wage: 3 × 21 = 63 days, so AED 21,000.00.
How Saudi end of service is calculated
Reference: Articles 84, 85 and 87 of the Labor Law issued by Royal Decree No. M/51.
- Article 84: half a month's wage for each of the first five years and a full month's wage for each year after.
- Based on the last wage; parts of a year count in proportion to the time worked.
- Article 85, on resignation: nothing under two years, one third from two to five years, two thirds for more than five and under ten years, and the full award from ten years.
- Article 87: the full award for leaving because of force majeure, and for a female worker who ends the contract within six months of marriage or three months of childbirth.
- Article 80: no award in the cases of lawful dismissal it lists.
Worked example: resignation after 7 years on SAR 10,000
- First five years: 5 × 5,000 = SAR 25,000
- Next two years: 2 × 10,000 = SAR 20,000
- Full award: SAR 45,000
- Resignation after more than 5 and under 10 years: two thirds, so SAR 30,000.00
Sources
- MOHRE: Federal Decree-Law No. 33 of 2021 (PDF)
- UAE Legislation: Decree-Law on the Regulation of Employment Relations
- u.ae, the UAE government portal: calculations for gratuity pay
- UAE Legislation: Implementing Regulations of the Employment Relations Law
- HRSD: Saudi Labor Law, official translation (PDF)
- HRSD: end of service award provisions
Rules checked on 30 September 2026. Laws change: confirm the current text with the official authority. هذه الحاسبة بالعربية
Frequently asked questions
How is gratuity calculated in the UAE?
Under Article 51 of Decree-Law 33/2021, a foreign full-time worker with at least one year of continuous service gets 21 days of the last basic wage for each of the first five years and 30 days for each year after. Parts of a year count pro rata, and the total is capped at two years' wage.
Does UAE gratuity include allowances?
No. It is calculated on the last basic wage only, without housing, transport or other allowances.
Do I get gratuity in the UAE if I resign?
Yes, if you have completed at least one year of continuous service. Article 51 does not reduce the award for resignation; the same calculation applies.
How is end of service calculated in Saudi Arabia?
Under Article 84 of the Labor Law: half a month's last wage for each of the first five years and a full month for each year after, with parts of a year in proportion to the time worked.
How much end of service do I get in Saudi Arabia if I resign?
Under Article 85: nothing under two years, one third from two to five years, two thirds for more than five and under ten years, and the full award from ten years. Article 87 gives the full award for force majeure, and to a female worker within six months of marriage or three months of childbirth.
Does unpaid leave count as service?
In the UAE, days of unpaid absence are not counted as service. In Saudi Arabia the contract is suspended for unpaid leave beyond 20 days unless the parties agree otherwise. Enter the days to exclude in the field provided.
Is this calculator legal advice?
No. The result is an estimate based on the general text of the law. It does not consider contract terms, special provisions or alternative schemes. For a real case, check with the relevant ministry or a lawyer.
More Gulf HR tools
Every employee record in one place
Joining dates, wages and documents for every employee in HR FLARE, with payroll in AED or SAR and an Arabic interface when your team needs it. Free for up to 5 employees.