UAE End-of-Service Gratuity Calculator
Calculate the standard MoHRE end-of-service benefit for foreign workers and handle the important part-time, unpaid-absence, temporary-work and alternative Savings Scheme distinctions.
Scope: The standard 21-day/30-day formula shown here is the Article 51 framework for full-time foreign workers. Other employment regimes may have different rules.
End-of-Service Benefit Calculator
Use actual employment dates instead of estimating service from whole years and months. Unpaid absence is removed from the qualifying service period.
AED 48,732
Standard Article 51 Rules
| Eligibility | Full-time foreign worker + ≥1 year continuous service |
| Years 1–5 | 21 days / year |
| After 5 years | 30 days / year |
| Wage basis | Last basic wage |
| Maximum | 24 months' wage |
| Unpaid absence | Excluded from service term |
Related UAE Employment Guides
Secure Financial Transfers Abroad
Protect banking sessions and account access when managing or transferring employment settlement funds internationally.
How Article 51 works
For a full-time foreign worker who has completed at least one year of continuous service, Article 51 provides 21 days of the last basic wage for every year during the first five years, then 30 days for every year exceeding five years. Fractions of a year are paid proportionately after the one-year threshold, and unpaid absence is removed from the service period.
| Service period | Statutory gratuity formula |
|---|---|
| Less than 1 year | No Article 51 gratuity entitlement. |
| First 5 years | 21 days of last basic wage per year. |
| More than 5 years | 21 days/year for the first five years + 30 days/year for each additional year. |
| Fraction of year after year one | Pro-rata according to the period actually spent at work. |
| Unpaid absence | Not included in the service term. |
Basic wage, final salary and the 24-month cap
Article 51 states that end-of-service benefits are calculated using the last basic wage for workers paid monthly, weekly or daily. The total benefit for the foreign worker cannot exceed two years' wage.
| Item | How this page treats it |
|---|---|
| Basic wage | Last basic wage specified for the applicable employee. |
| Total cash package | Not substituted for the basic wage in the standard Article 51 formula. |
| Gratuity ceiling | Maximum two years' wage. |
Part-time and employment-sharing work
The standard Article 51 formula should not simply be copied for every work pattern. Executive Regulation Article 30 provides a separate formula for part-time and employment-sharing work: annual contractual working hours divided by annual full-time contractual hours, multiplied by the full-time end-of-service entitlement. Temporary employment lasting less than one year does not attract the end-of-service benefit under that provision.
Alternative End-of-Service Savings Scheme
The UAE has a voluntary alternative end-of-service benefits system under Cabinet Resolution No. 96 of 2023. Participating employers can enroll employees into approved investment funds instead of continuing the traditional gratuity system for the period after enrollment. MoHRE states that gratuity accrued before enrollment is preserved, while the alternative system applies from the registration date.
| Situation | Safe treatment |
|---|---|
| Employer remains on traditional system | Article 51 / Article 30 calculation applies according to the applicable work pattern. |
| Employee enrolled in Savings Scheme | Traditional gratuity accrued before enrollment is preserved; alternative-scheme benefits apply from enrollment. |
| Investment returns | Depend on the approved investment fund and chosen investment option; they are not a fixed legal gratuity amount. |
Final settlement and lawful deductions
Article 53 requires the employer to pay the worker's wages and other contractual/statutory entitlements within 14 daysfrom the end date of the contract. Article 51 permits deductions from end-of-service benefits for amounts payable under law or a judgment, while the implementing regulation sets out specific categories and procedures.
| Issue | Current rule |
|---|---|
| Final settlement deadline | Within 14 days from contract end. |
| Lawful loan / excess-payment amount | May be deducted subject to the applicable legal procedures. |
| Court judgment | Court-ordered debt may be deducted according to the applicable rules. |
| Damage / disciplinary deductions | Only where the statutory conditions and approved procedures are satisfied. |
Scope: who should not use the standard calculator without checking
This page is designed around the MoHRE Federal Decree-Law No. 33 of 2021 framework. UAE nationals receive end-of-service benefits under the pension/social-security legislation rather than the foreign-worker Article 51 formula. Workers on part-time/employment-sharing or temporary patterns have different rules. Some financial free-zone employment regimes and other specially regulated categories can also have separate legislation.
Related UAE Tools & Guides
2026 VerifiedFrequently Asked Questions
UAE Legislation — Federal Decree-Law No. 33 of 2021: Official labour-law text
MoHRE — Federal Decree-Law No. 33 of 2021 and amendments: Current MoHRE labour-law reference
Cabinet Resolution No. 1 of 2022: Executive Regulations to the Labour Relations Law
MoHRE — Alternative End-of-Service Benefits System: Current voluntary Savings Scheme
MoHRE — Official Portal: mohre.gov.ae