Calculate the end-of-service gratuity owed to a UAE employee per Article 51 of Federal Decree-Law 33/2021. Handles termination type and contract type. Pure-JS — runs entirely in your browser.
Employee details
How UAE end-of-service gratuity works
Article 51 of Federal Decree-Law 33/2021 (UAE Labour Law) governs end-of-service gratuity for private-sector employees. The basic formula:
Standard formula
First 5 years of service: 21 days of basic salary per year
Years 6 onwards: 30 days of basic salary per year
Cap: Total gratuity cannot exceed 2 years of basic salary regardless of length of service
Termination type matters
Employer-initiated termination (with notice) — full gratuity per formula
Mutual end of contract — full gratuity
Employee resignation — full gratuity. The old reduced scale (1/3 under 1 year, 2/3 for 1–3 years) came from the repealed Federal Law 8/1980; those fractions appear nowhere in FDL 33/2021 or in Cabinet Resolution 1/2022.
Employee resignation without notice — full gratuity. Failing to give notice may make the worker liable for compensation in lieu of notice, which is a separate claim against them — it is not a reduction of the end-of-service benefit.
Article 44 termination (cause) — full gratuity. Article 44 lists the grounds for dismissing a worker without notice and says nothing about end-of-service benefits. The word “forfeit” does not appear anywhere in FDL 33/2021. Dismissal for cause still requires the written investigation and notification Article 44 sets out, but it does not cost the worker the benefit.
The only lawful reduction is the Article 51(7) deduction of an amount payable under the law or a court judgment — a deduction from a benefit that exists, needing its own legal basis.
Worked example
Employee with 8 years of service · 10,000/month basic salary · mutual end of contract:
First 5 years: 5 × 21 days × (10,000 ÷ 30) = 35,000
Years 6-8 (3 years): 3 × 30 days × (10,000 ÷ 30) = 30,000
Total gratuity: 65,000
Cap check: 65,000 vs 2 years of basic salary (240,000). Under the cap — pay 65,000 in full.
📜 Law reference: Federal Decree-Law 33/2021 Articles 51-53 (End-of-Service Gratuity) · Cabinet Decision 1/2022 Articles 30-32 (calculation details) · Article 44 (termination for cause) · Article 45 (employee right to terminate).
What this calculator does NOT cover
Domestic workers — separate scheme under Federal Decree-Law 9/2022
Free Zone employees — most follow Federal Labour Law, but DIFC and ADGM have separate employment laws. Verify with your free zone authority.
Government employees — covered by separate civil service / military pension schemes
Variable salary components — bonuses, commissions, profit-share. The calculator uses basic salary only per Article 51 definition.
Unpaid leave deductions — extended unpaid leave can reduce qualifying service period
Article 45 employee-side justifications — these require legal documentation and tribunal review, not a calculator
When to consult a UAE labour lawyer
Article 44 terminations — strict procedural requirements; mistakes invalidate the dismissal and require full gratuity + damages
Employees with mixed contract history (multiple roles, transfers, renewals)
Disputes about basic salary definition (what's "basic" vs allowances in your contract)
Cases involving employee fraud, criminal allegations, or contested resignation circumstances
HIBR ERP accrues gratuity monthly — no year-end surprises
Most UAE SMBs only think about gratuity when an employee resigns. HIBR ERP's HR module accrues the gratuity liability on every payroll cycle, so the balance sheet always reflects what you actually owe.