In 2026, over 5.8 million private-sector workers in the UAE are entitled to end of service gratuity under Federal Decree-Law No. 33 of 2021 (MOHRE, 2026). MOHRE processed more than 1.2 million end of service benefit claims in 2025, with an average payout of AED 28,400 per worker (UAE Government, 2026). Since February 2022, every limited-term contract completion triggers full gratuity entitlement, a reform that directly affects every employer and employee in the country (MOHRE, 2026). The MOHRE gratuity calculator at mohre.gov.ae is the fastest way to confirm your exact AED entitlement in under a minute, with no login required.

This guide covers exactly how the MOHRE gratuity calculator works, the full UAE gratuity calculation formula, worked AED examples, eligibility rules, what reduces your entitlement, and what to do if your employer does not pay. Whether you're an employee checking what you're owed or an HR manager at a Dubai South Business Hub Free Zone company processing final settlements, you'll find everything you need here. Keep your eye on the wage protection system UAE employer guide too, WPS compliance runs parallel to gratuity obligations.

What Is End of Service Gratuity in UAE

End of service gratuity in UAE is a mandatory lump-sum payment employers must pay to employees upon termination or resignation under Federal Decree-Law No. 33 of 2021. It is calculated on basic salary only, not allowances, and is based on years of continuous service, starting from a minimum of one completed year.

The Legal Basis for Gratuity Under UAE Labour Law

Federal Decree-Law No. 33 of 2021, commonly called the New Labour Law, came into effect on 2 February 2022. It governs end of service gratuity UAE for all private-sector employees, regardless of nationality, emirate of work, or contract type. That means a Filipino accountant employed by a mainland Dubai company for 4 years and a British engineer at a free zone firm both fall under exactly the same gratuity rules.

Free zone employees, including those working for companies licensed through Dubai South Business Hub Free Zone, are subject to the same federal gratuity obligations. The only notable exception is the DIFC, where the Dirhams for Employee Welfare Scheme (DEWS) operates as a separate savings-based alternative. Outside DIFC, federal gratuity rules apply universally to all 5.8 million+ private sector workers (MOHRE, 2026).

For a broader view of your MOHRE obligations, the MOHRE inquiry system UAE guide covers how to check employment records and file requests through the official portal.

What Counts as Basic Salary for Gratuity Calculation

This is where many employees get shortchanged. Gratuity is calculated on basic salary only, housing allowance, transport allowance, food allowance, commission, and any other benefits are excluded entirely. The figure used is your last drawn basic salary at the point of termination or resignation, not an average across your employment period.

So if you earn AED 15,000 per month total but your employment contract shows AED 8,000 as basic salary, the MOHRE gratuity calculator uses AED 8,000. Your gratuity is calculated on that figure alone, not AED 15,000. This distinction is defined in Article 51, Federal Decree-Law No. 33 of 2021, and the MOHRE gratuity calculator specifically prompts you to enter basic salary, not total salary.

Important: Employers cannot legally restructure salary packages to inflate allowances and reduce basic salary specifically to minimise gratuity liability. MOHRE labour inspectors look for this pattern during dispute investigations.

Who Is Entitled to Gratuity in UAE

Any private-sector employee who has completed at least one continuous year of service in the UAE is entitled to end of service gratuity. This includes employees on limited and unlimited contracts, full-time and part-time workers. Domestic workers under Federal Law No. 10 of 2017 follow separate rules.

Eligibility Criteria Every Employee Should Know

1. Minimum 1 full year of continuous service. Not 11 months. Not 11 months and 28 days. The threshold must be fully completed, an employee who resigns on day 364 receives zero gratuity.

2. Applies to both termination and resignation. The reason for leaving affects the percentage paid, not the base entitlement itself.

3. Part-time employees are included. Since the 2022 law update, part-time workers receive gratuity calculated on a pro-rata basis relative to a full-time equivalent.

4. Gross misconduct forfeits entitlement entirely. Employees dismissed under Article 44 of Federal Decree-Law No. 33 of 2021 lose all gratuity rights.

How Resignation Affects Your Gratuity Entitlement

Resignation doesn't eliminate your gratuity uae entitlement, but it does reduce it until you've served 5 years. Here's how the bands work under current end of service benefits uae rules:

UAE Gratuity Calculation Examples in AED - 2026

One practical note: the February 2022 reform eliminated the resignation penalty for employees who complete a limited-term contract. If your contract ends naturally and you don't renew, that counts as a completion, not a resignation, and you receive full gratuity from day one of service.

UAE Gratuity Calculation Formula - How MOHRE Calculates It

MOHRE calculates UAE gratuity using 21 days of basic salary per year for the first 5 years of service, and 30 days of basic salary per year for each year beyond 5 years. The total gratuity payout cannot exceed 2 years' worth of the employee's total salary under any circumstances.

The Two-Tier Gratuity Formula Explained

The gratuity calculation uae formula works in two tiers. Here's the exact structure used by the MOHRE gratuity calculator:

Here's how to calculate gratuity uae with a real example. An employee earning AED 10,000/month basic salary who has served 7 years:

• Daily rate: AED 10,000 Ã. 30 = AED 333.33

• Tier 1: AED 333.33 Ã- 21 Ã- 5 = AED 35,000

• Tier 2: AED 333.33 Ã- 30 Ã- 2 = AED 20,000

• Total gratuity: AED 55,000

The 21-day rule for the first 5 years and the 30-day rule from year 6 onwards are both defined in Article 51 of Federal Decree-Law No. 33 of 2021 (uaecabinet.ae, 2022). The 2-year total salary cap is an absolute ceiling, even if the formula produces a higher figure, MOHRE will not pay above it.

UAE Gratuity at a Glance: Key Numbers for 2026

A quick-reference visual showing the most important gratuity figures every UAE employee and employer should know.

• 5.8 million+ private sector workers covered by UAE gratuity law (MOHRE, 2026)

• 21 days basic salary per year, applies for the first 5 years of service

• 30 days basic salary per year, applies from year 6 onwards

• 14 days, maximum time employer has to pay after last working day (Article 53)

• AED 28,400, average end of service payout in 2025 (UAE Government, 2026)

• 2-year total salary, absolute maximum gratuity cap under UAE law

Suggested alt text: Infographic showing six key UAE gratuity statistics for 2026, including worker coverage, daily rate tiers, payment deadline, and average payout figures.

A four-step process showing how the MOHRE gratuity calculator applies the two-tier formula from daily rate to final payout. How MOHRE Calculates UAE Gratuity 1Basic SalaryÃ. 30 = Daily Rate 2Tier 1: Yrs 1-521 days Ã- years 3Tier 2: Yr 6+30 days Ã- years 4Total PayoutTier 1 + Tier 2

MOHRE Gratuity Calculator - How to Use It Online

The MOHRE gratuity calculator is a free online tool at mohre.gov.ae that computes your UAE end of service entitlement instantly. Enter your basic salary, contract type, start date, end date, and reason for leaving. The calculator applies the correct MOHRE formula and displays your gratuity amount in AED in seconds.

MOHRE Gratuity Calculator UAE - Step-by-Step Instructions

No Emirates ID or account login is required. The gratuity calculator mohre tool is available in both Arabic and English. Here's exactly how to use it:

1. Go to mohre.gov.ae and navigate to Services, then Employees, then Gratuity Calculator (or search "gratuity calculator" in the site search bar).

2. Select your contract type, Limited or Unlimited. Post-February 2022 contracts are all limited-term, but the tool still accommodates pre-2022 unlimited contract records.

3. Enter your employment start date, the date your current contract began, as shown on your employment contract or MOHRE labour card.

4. Enter your end date, either your actual last working day or your expected final day if you're planning ahead.

5. Enter your basic monthly salary in AED, basic salary only. Do not include housing, transport, or any other allowances in this field.

6. Select your reason for leaving, resignation, termination by employer, mutual agreement, or contract completion. This determines the resignation reduction factor.

7. Click Calculate, the MOHRE end of service calculator displays your gross gratuity entitlement in AED instantly.

An HR manager at a Dubai South Business Hub Free Zone company can use this same process to pre-calculate each departing employee's entitlement before processing their final settlement, it takes under two minutes per employee and removes any ambiguity from the payroll calculation.

End of Service Calculator UAE MOHRE - What the Tool Does Not Cover

The MOHRE end of service calculator is specifically a gratuity tool. It does not calculate accrued annual leave pay, unpaid salary, or notice period compensation. Those are separate line items in a final settlement. A complete final settlement for a departing employee might look like: gratuity (AED 28,000) + accrued leave (AED 4,500) + notice period pay (AED 8,000) = total AED 40,500. The MOHRE calculator only confirms the AED 28,000 gratuity portion.

It also doesn't factor in DEWS contributions for DIFC-based employees, since DEWS operates under a separate regulatory framework. For in-person assistance, Tasheel service centres across the UAE offer walk-in support for MOHRE calculations and complaint filings if you can't access the online portal.

Need help navigating other MOHRE services? The MOHRE inquiry system UAE guide walks through the full range of employee and employer tools available on the portal.

Gratuity for Limited vs Unlimited Contracts

Since February 2022, UAE Labour Law abolished the unlimited contract category, all new contracts must be limited-term, renewable up to 3 years. Employees on limited contracts who complete their term receive full gratuity. Employees on pre-2022 unlimited contracts retain their accumulated entitlements under the previous law until their contract is converted.

How the February 2022 Labour Law Reform Changed Gratuity Rules

Before February 2022: Unlimited contracts created a grey area for resignations. Employers could argue that an employee resigning before 5 years was entitled to a reduced percentage, and the uae gratuity law supported that position.

After February 2022: All new contracts are limited-term. When a limited-term contract reaches its natural end and the employee doesn't renew, that's a contract completion, not a resignation. Full end of service gratuity uae applies from year one, with no reduction factor.

Employees hired before February 2022 on unlimited contracts have split entitlements. Their service up to the conversion date is calculated under the old rules; post-conversion service falls under the new framework. The MOHRE gratuity calculator handles this split automatically when you enter the correct start date and contract type. Employers had until 1 February 2023 to convert all existing unlimited contracts to limited-term (MOHRE, 2023).

For example: an employee hired in 2019 on an unlimited contract who is still employed in 2026 has roughly 3 years under old rules and 4 years under new rules. The calculator processes both periods correctly when you select "unlimited" as the original contract type.

Key Points for Employers on Contract Conversion

• All contracts issued after 2 February 2022 must be limited-term, maximum 3 years, renewable.

• Employees on converted contracts retain all previously accrued gratuity entitlements.

• Failing to convert contracts by the February 2023 deadline exposed employers to MOHRE compliance action.

• The wage protection system UAE employer guide covers how WPS and contract compliance connect to MOHRE monitoring.

What Reduces or Cancels Gratuity Entitlement

Gratuity entitlement is reduced if an employee resigns before completing 5 years of service, to 1/3 before 3 years and 2/3 between 3 and 5 years. Gratuity is cancelled entirely if the employee is dismissed for gross misconduct under Article 44 of Federal Decree-Law No. 33 of 2021, or if they have served less than 1 year.

Gross Misconduct Grounds That Forfeit Gratuity

Article 44 of Federal Decree-Law No. 33 of 2021 lists 8 specific grounds for dismissal without gratuity uae entitlement. These are the only legitimate bases for forfeiture:

1. Assuming a false identity or submitting forged documents

2. Causing financial loss or damage to the employer through negligence or deliberate action

3. Violating safety instructions that endangered others

4. Disclosing confidential company information to third parties

5. Being found intoxicated or under the influence of controlled substances during working hours

6. Committing assault on the employer, a manager, or a colleague

7. Absence without authorisation for more than 20 non-consecutive days or 7 consecutive days in a year

8. Competing directly against the employer in breach of a non-compete agreement

Critically, the burden of proof sits entirely with the employer. An employee dismissed for assault on a colleague only loses gratuity if MOHRE's investigation confirms the misconduct. Arbitrary dismissal, where the employer cannot substantiate the claim, does not qualify under Article 44, and the employee retains full end of service benefits uae entitlement. Employers must file a misconduct report with MOHRE within the prescribed timeframe or risk losing the right to contest gratuity payment.

Stay on top of your compliance obligations with the company compliance calendar UAE, it covers MOHRE filing deadlines, WPS cycles, and contract renewal dates in one place.

When Must Employers Pay Gratuity in UAE

UAE employers must pay end of service gratuity within 14 days of the employee's last working day. This deadline applies regardless of contract type, reason for termination, or any outstanding disputes. Late payment exposes employers to MOHRE fines, labour complaints, and potential legal proceedings initiated through the MOL dispute system.

Employer Obligations and Payment Timeline

The 14-day rule under Article 53 of Federal Decree-Law No. 33 of 2021 is non-negotiable. If an employee's last working day is 15 March 2026, the full final settlement, including eosb uae, accrued annual leave, and any outstanding salary, must reach the employee's bank account by 29 March 2026. The clock starts from the last working day, not from visa cancellation or end of the notice period.

Here's the complete employer checklist for final settlement:

1. Calculate gratuity using the MOHRE gratuity calculator at mohre.gov.ae.

2. Calculate accrued annual leave days and convert to AED based on daily salary.

3. Calculate any outstanding salary for the final partial month.

4. Calculate notice period pay if the employee was released early.

5. Transfer the total amount in UAE Dirhams (AED) to the employee's registered bank account.

6. Issue a final settlement letter

   References

   • uaecabinet.ae (uaecabinet.ae)