Calculation Methodology & Standards
Every calculator on UAE LifeTools is built upon verified mathematical models and published statutory legislation from UAE federal and local government authorities.
1. End-of-Service Gratuity (Article 51, Decree-Law 33/2021)
Daily Basic Wage = Basic Salary ÷ 30
Years 1–5: Total = (Daily Basic Wage × 21) × Completed Years (min 5)
Years 6+: Total = (Daily Basic Wage × 30) × Additional Years
Statutory Maximum Cap = Basic Salary × 24 (2 Years Basic)
Gratuity applies to employees completing at least one continuous year of service. Under the reformed labour law, distinctions between contract resignation and termination have been unified into fixed-term contractual standards.
2. Overtime Pay (Article 19, Decree-Law 33/2021)
Hourly Basic Wage = (Basic Salary ÷ 30) ÷ 8
Daytime Overtime (4:00 AM – 10:00 PM) = Hourly Rate × 1.25
Night Overtime (10:00 PM – 4:00 AM) = Hourly Rate × 1.50
Rest Day Overtime = Hourly Rate × 1.50 (or substitute rest day)
Statutory overtime is calculated strictly from the employee’s basic wage, excluding allowances, and is capped at 2 hours per working day.
3. Dubai Rent Increase Caps (Decree No. 43 of 2013)
• 0% Increase: Current rent is up to 10% below average market rent.
• 5% Maximum: Current rent is 11% to 20% below average market rent.
• 10% Maximum: Current rent is 21% to 30% below average market rent.
• 15% Maximum: Current rent is 31% to 40% below average market rent.
• 20% Maximum: Current rent is greater than 40% below average market rent.
All increases require at least 90 days written notice before lease expiration.
4. Central Bank Debt Burden Ratio (CBUAE Circular 29/2011)
Total Monthly Debt Commitments ≤ Monthly Salary × 0.50 (50% DBR)
Credit Card Assessment = Total Approved Card Limit × 0.05 (5% rule)
Maximum Personal Loan Tenure = 48 Months (4 Years)