UAE Payroll & Gratuity Calculator

Monthly gross and net pay, end-of-service gratuity and leave encashment under the UAE Labour Law.

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Monthly pay (AED)

AED
AED
AED
AED
AED
AED

Loans, advances or unpaid absence.

Gross monthly pay
AED 15,000
Net pay (paid through WPS)
AED 15,000

End of service

days

Not counted as service.

days
Service
7 years
End-of-service gratuity
AED 55,027
165.1 days of basic pay
Leave encashment
AED 3,333
Gratuity + leave
AED 58,361

Based on the UAE Labour Law (Federal Decree-Law No. 33 of 2021) for private-sector employees. Employees in DIFC and ADGM, government employees and UAE nationals under pension schemes follow different rules. Final settlements can also include notice pay and other contract terms.

Results are estimates for general information. They are not tax, legal or financial advice. Rules and rates change, so please check with an advisor before you act on them.

How it works

Gross pay is the basic salary plus allowances and overtime. Net pay is gross pay less deductions such as loans or advances.

End-of-service gratuity under the UAE Labour Law is based on the last basic salary. It is 21 days of basic pay for each of the first five years of service and 30 days for each year after that, with part years counted pro rata. The total cannot be more than two years of basic pay.

Employees need at least one year of continuous service to qualify. Days of unpaid leave do not count towards service. The calculator uses the monthly basic salary divided by 30 as the daily wage.

Questions

How is gratuity calculated in the UAE?

For private-sector employees under Federal Decree-Law No. 33 of 2021: 21 days of basic salary for each of the first five years, then 30 days for each additional year, pro rata for part years, capped at two years' basic salary.

Does resigning reduce my gratuity?

Under the current UAE Labour Law, gratuity for private-sector employees is not reduced because the employee resigned. Check your contract and any free zone rules, as DIFC and ADGM have their own schemes.

Is gratuity based on basic or total salary?

On the last basic salary, without allowances.

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