Free Tool · MOHRE · Article 51 · New Law · DIFC · 8 Currencies
UAE End of Service Calculator
Calculate UAE end of service gratuity under Federal Decree-Law No. 33 of 2021. Supports new and old law, DIFC DEWS, year-by-year accumulation, and conversion to 8 currencies.
How to Use the UAE End of Service Calculator
Enter your monthly basic salary in AED, excluding all allowances. Furthermore, enter your employment start and end dates for automatic service period calculation. Additionally, select whether you fall under the new law (post-February 2022) or the old law, choose your reason for leaving, and deduct any unpaid leave days.
- Enter basic salaryMonthly basic salary only. Exclude housing, transport, phone and all other allowances.
- Set employment datesEnter your first working day and last working day. Service period calculates automatically.
- Select law version and reasonNew law applies from February 2022. Old law applies to pre-2022 contracts not yet converted.
- Deduct unpaid leaveEnter total days of unpaid absence. MOHRE excludes these from continuous service calculation.
- Review and exportSee full breakdown, year-by-year accumulation and currency conversions. Copy or download the report.
UAE Gratuity Law: Federal Decree-Law No. 33 of 2021
End of service gratuity is governed by Article 51 of Federal Decree-Law No. 33 of 2021. This law took effect on 2 February 2022 and replaced the previous Labour Law. Furthermore, all private-sector employment contracts must now be fixed-term. Additionally, the distinction between limited and unlimited contracts was abolished.
The most significant change is that resignation no longer reduces gratuity. Under the old law, employees who resigned from unlimited contracts received only one-third of their gratuity for 1 to 3 years of service. Furthermore, they received two-thirds for 3 to 5 years. Additionally, under the new law, all employees receive full gratuity regardless of whether they resign or are terminated.
Eligibility and Qualifying Conditions
All private-sector expatriate employees who complete at least one year of continuous service are eligible for gratuity. UAE nationals are covered by social security instead. Furthermore, days of unpaid absence are excluded from the continuous service calculation. Additionally, the one-year minimum is calculated based on actual working days, not calendar days.
Employees dismissed for gross misconduct under Article 44 forfeit their gratuity entirely. This includes assault, fraud, disclosure of confidential information, and reporting to work under the influence of intoxicants. Furthermore, employers must prove misconduct through proper investigation and documentation. Additionally, wrongful dismissal claims can be filed with MOHRE.
New Law vs Old Law Comparison
The new law (Federal Decree-Law No. 33 of 2021) simplified gratuity significantly. All contracts are fixed-term, and full gratuity is payable regardless of resignation or termination. Furthermore, the old law had complex reductions for employees who resigned from unlimited contracts. Additionally, all employers were required to convert unlimited contracts to fixed-term by 1 February 2023.
| Scenario | Old law (unlimited) | New law (fixed-term) |
|---|---|---|
| Resign, 1-3 years | 33% of gratuity | 100% of gratuity |
| Resign, 3-5 years | 67% of gratuity | 100% of gratuity |
| Resign, 5+ years | 100% of gratuity | 100% of gratuity |
| Terminated (lawful) | 100% of gratuity | 100% of gratuity |
| Contract expiry | 100% of gratuity | 100% of gratuity |
| Gross misconduct | 0% (Article 120) | 0% (Article 44) |
DIFC and Free Zone Exceptions
Most UAE free zones (JAFZA, DMCC, RAKEZ, IFZA, SHAMS) follow the same federal gratuity rules as mainland employers. However, DIFC operates its own employment law. Furthermore, DIFC replaced the lump-sum gratuity system with the DEWS (DIFC Employee Workplace Savings) defined-contribution plan in 2020.
Under DEWS, employers contribute a percentage of basic salary to an investment fund. The contribution rate is 5.83% for employees with less than 5 years of service. Furthermore, it increases to 8.33% after 5 years. Additionally, ADGM (Abu Dhabi Global Market) has its own employment regulations that may differ from federal law.
Employer Obligations and Penalties
Employers must settle all end of service payments within 14 days of contract termination. This includes gratuity, outstanding salary, unused annual leave and any other contractual entitlements. Furthermore, failure to pay within 14 days can trigger MOHRE complaints and legal action.
Penalties for non-compliance are severe. Repeated violations can result in fines up to AED 1,000,000 per the UAE Labour Law. Furthermore, MOHRE may suspend the issuance of new work permits for the employer. Additionally, employers should maintain actuarial provisions for future gratuity liabilities to ensure funds are available.
Part-Time and Flexible Work Gratuity
Cabinet Resolution No. 1 of 2022 introduced pro-rata gratuity for part-time, temporary and flexible work arrangements. The calculation uses the ratio of contracted working hours to full-time hours. Furthermore, multiply this ratio by the full-time gratuity amount to get the part-time entitlement.
Competitor Gap Analysis
Most existing UAE gratuity calculators offer only basic salary and service inputs. They lack critical features that employees need for accurate planning. Furthermore, no competitor tool offers DIFC DEWS mode, year-by-year accumulation charts, or multi-currency conversion for remittance planning.
This calculator addresses five gaps identified in competitor tools. First, it supports both old and new law calculations for employees with pre-2022 contracts. Second, it provides DIFC DEWS contribution calculation. Third, it shows year-by-year gratuity accumulation visually. Fourth, it converts the final amount to eight currencies commonly used by UAE expatriates for remittance. Fifth, it exports a professional report in text and CSV formats.
Key Documents to Prepare Before Leaving
Prepare your employment contract showing the agreed basic salary breakdown. Furthermore, obtain recent salary receipts confirming your current basic salary through the Wage Protection System (WPS). Additionally, request a salary certificate from HR that separates basic salary from allowances, as gratuity is calculated on basic salary only.
Keep your UAE labour card, Emirates ID and passport copies readily accessible. Furthermore, document any unpaid leave periods with HR approval letters. Additionally, calculate your unused annual leave balance, as this is paid separately alongside gratuity at the daily rate.