“I’m leaving my job in Dubai soon — how can I calculate my gratuity correctly as per the new UAE Labour Law?”

[Koshi jhod]

“I’m leaving my job in Dubai soon — how can I calculate my gratuity correctly as per the new UAE Labour Law?”

 

[jhoni]

If you’re leaving your job in Dubai, your gratuity is calculated only on your basic salary — not on your total package or allowances.


According to the UAE Labour Law (Federal Decree-Law No. 33 of 2021):

• If you’ve worked less than 1 year, you’re not eligible for gratuity.
• For the first 5 years, you get 21 days’ basic salary for each year of service.
• After 5 years, it becomes 30 days’ basic salary for every additional year.

Example:
If your basic salary is AED 6,000 and you’ve worked for 4 years:
Gratuity = (6,000 ÷ 30) × 21 × 4 = AED 16,800


Also, your company must pay your full and final settlement within 14 days after your last working day.

 

[robert00980]

If you’re leaving your job in Dubai and want to calculate your UAE end-of-service gratuity correctly, the key factor is your last basic salary and years of service — allowances like housing or transport don’t count.


Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), you earn 21 days of basic salary for each year of service up to the first five years, and 30 days of basic salary for each additional year after that. Only employees who have completed at least one full year of continuous service qualify for gratuity, and the amount must be paid within the law’s timeframe.


To make this easier, many people use a simple online gratuity calculator where you enter your basic salary, service dates and contract type — it instantly shows what your entitlement should be under UAE rules. For example, tools like this can help you estimate your total gratuity amount before you talk to HR or your employer.