Dubai Gratuity Calculator 2026
Calculate your end-of-service benefits for Dubai mainland, free zones (DMCC, JAFZA) and DIFC.
Exclude housing, transport & other allowances.
Days excluded from service period.
Your Gratuity Estimate
Total Gratuity Amount
AED 0
Total Service
0 Years
Daily Basic Rate
AED 0
Dubai Gratuity Law: What You Need to Know in 2026
End-of-service gratuity is a mandatory payment that every private-sector employer in Dubai must provide to employees who have completed at least one continuous year of service. The rules are governed by Federal Decree-Law No. 33 of 2021, which replaced the older UAE Labour Law and standardised all private-sector contracts as fixed-term (limited) contracts.
Whether you work on the Dubai mainland, in a free zone such as DMCC, JAFZA, or Dubai Silicon Oasis, or inside the DIFC financial centre, understanding your gratuity entitlement is essential for financial planning. Our calculator covers all three scenarios so you can estimate your payout before your last working day.
Gratuity is calculated on your last basic salary only—allowances for housing, transport, utilities, and bonuses are excluded. Unpaid leave days are also deducted from the total service period. The final amount is capped at two years' total salary (Article 51), meaning even decades of service will not exceed that ceiling.
First 5 Years of Service
You receive 21 calendar days of basic salary for each completed year. Partial years after the first are calculated pro-rata. For example, with a basic salary of AED 15,000, your daily rate is AED 500, so each year earns AED 10,500 in gratuity.
Beyond 5 Years of Service
For every year served beyond the fifth, the rate increases to 30 calendar days of basic salary per year. Using the same AED 15,000 example, each additional year beyond five earns AED 15,000 in gratuity—a 43% increase over the first-tier rate.
DIFC DEWS Savings Plan
Since February 2020, DIFC employers contribute to the DIFC Employee Workplace Savings (DEWS) plan instead of traditional gratuity. The mandatory contribution is 5.83% of basic salary for the first 5 years and 8.33% thereafter. Funds are invested, so actual payouts depend on market performance.
Key Rules to Remember
Gratuity is based on basic salary only—no allowances. Total payout is capped at 2 years' salary. Unpaid leave days are excluded. Employees terminated for gross misconduct (Article 44) may forfeit gratuity. Under the new law, resignation vs. termination no longer affects the calculation for limited contracts.
Dubai Free Zones vs. Mainland: Gratuity Differences
Most Dubai free zones—including DMCC, JAFZA, Dubai Internet City, Dubai Media City, and Dubai Silicon Oasis—follow the same Federal Labour Law as the mainland. This means the 21/30-day gratuity formula applies identically. The notable exception is the DIFC, which operates under its own employment legislation (DIFC Law No. 2 of 2019) and replaced the lump-sum gratuity with the DEWS defined-contribution savings scheme.
If you transitioned from a pre-DEWS DIFC contract, you may be entitled to traditional gratuity for the service period before enrollment, plus DEWS contributions for the period after. Always check your employment contract and consult your HR department for the exact split.
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