“I’m leaving my job in Dubai soon — how can I calculate my gratuity correctly as per the new UAE Labour Law?”
“I’m leaving my job in Dubai soon — how can I calculate my gratuity correctly as per the new UAE Labour Law?”
- Thread starter Koshi jhod
- Start date
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):
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.
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.
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.
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.
That’s a very common question, especially with the updates in UAE Labour Law — good that you’re checking before leaving 
In simple terms, gratuity is calculated based on your last basic salary (not total salary) and your total years of service. Under the current law:
A few important things to keep in mind:
Instead of calculating manually, you can use this mohre gratuity calculator — Just enter your joining date, last working day, and basic salary, and it gives a pretty clear breakdown. It’s quite helpful because it lets you select resignation vs termination and also limited or unlimited contract, so the final result is automatically adjusted according to your exact situation.
Hope that helps, and best of luck with your next step!
In simple terms, gratuity is calculated based on your last basic salary (not total salary) and your total years of service. Under the current law:
- You get 21 days of basic salary per year for the first 5 years
- After 5 years, it becomes 30 days per year
A few important things to keep in mind:
- Minimum 1 year of service is required
- Allowances (housing, transport, etc.) are not included
- Partial years are calculated proportionally
- Total gratuity is capped at 2 years of basic salary
Instead of calculating manually, you can use this mohre gratuity calculator — Just enter your joining date, last working day, and basic salary, and it gives a pretty clear breakdown. It’s quite helpful because it lets you select resignation vs termination and also limited or unlimited contract, so the final result is automatically adjusted according to your exact situation.
Hope that helps, and best of luck with your next step!
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