Is an employee entitled to gratuity if they resign before 1 year?

No. If continuous service is less than one full year (365 calendar days), no gratuity is payable.

What is the maximum gratuity cap in the UAE?

The total end-of-service gratuity cannot exceed the aggregate of two years’ basic salary.

Does DIFC or ADGM follow this same law?

Free zones like DIFC and ADGM have their own statutory workplace savings schemes (such as the DIFC DEWS plan) where employers contribute monthly into an investment fund rather than paying a lump-sum gratuity.

Money & Finance

Updated: November 2026

UAE Gratuity Calculator

Calculate end-of-service gratuity according to UAE Labour Law (Federal Decree-Law No. 33 of 2021).

Last Drawn Basic Monthly Salary (AED)

AED

Article 51 explicitly excludes housing, transport, and commission allowances.

Continuous Length of Service

Completed Years3 Years

Additional Months (0-11)

Additional Days (0-30)

Total Service Credited: 3.5 years. Unpaid leave days must be deducted from continuous service count.

Article 51 Entitlement

Total End-of-Service Gratuity

AED 24,500

✓ Full entitlement (over 1 year of continuous service)

Daily Basic Wage (AED 10000 ÷ 30):AED 333.33

First 5 Years Tier (21 days / yr):AED 24,500

Subsequent Years Tier (30 days / yr):AED 0

Statutory 2-Year Cap:AED 240,000

Eligible for full statutory gratuity under Federal Decree-Law No. 33 of 2021. Calculated at 21 days/year for first 5 years (3.50 yrs) and 30 days/year for subsequent years (0.00 yrs).

Payable within 14 days of termination

Calculation Methodology & Legal Basis

Under UAE Federal Decree-Law No. 33 of 2021 (in effect from February 2022 onwards), all private sector contracts are standardized fixed-term contracts. Employees completing at least 1 year of continuous service are entitled to: 21 days of basic salary per year for the first 5 years of service, and 30 days of basic salary per year for each subsequent year. Total gratuity cannot exceed 2 years gross basic salary. Resignation vs termination distinctions have been simplified under the reformed decree.

Worked Example

An employee with 4 years of service and a basic salary of AED 12,000: Daily wage = AED 12,000 / 30 = AED 400. Annual gratuity = 21 × AED 400 = AED 8,400. Total 4-year gratuity = 4 × AED 8,400 = AED 33,600.

Official Government & Regulatory Sources

MOHRE UAE Labour Law Portal — Federal Decree-Law No. 33 of 2021 on Regulation of Labour RelationsVisit Official Portal

UAE Government Official Portal — End-of-service benefits criteria and calculation detailsVisit Official Portal