How it is calculated
- No gratuity before one year of continuous service.
- 21 days’ wage for each of the first five years and 30 days’ wage for each year after, with part-years pro rata.
- It is based on the last basic salary (without allowances); the daily wage = basic salary ÷ 30.
- The total may not exceed two years’ pay, and resigning does not reduce it under the new law.
FADx Hader does this for all your staff automatically
Attendance, payroll, leave and end of service in one place — no calculator needed.
Explore FADx HaderCommon questions
Is gratuity reduced on resignation in the UAE?
No. Under Decree-Law 33 of 2021 gratuity is worked out the same way whether the employee resigns or the employer ends the contract, provided one year of service is complete.
Do housing and transport allowances count?
No — only the last basic salary is used.
When must it be paid?
Within 14 days of the contract ending, with the other dues.
Other tools
Try Hader at your company
We activate a free trial account for your company and send you the sign-in link — your staff check in from a browser, a phone or a fingerprint terminal.