Dubai Gratuity Calculator 2026

Working in Dubai and wondering what your end of service benefits will be? This page explains how the current UAE Labour Law gratuity formula applies to Dubai employees, where Dubai free zones differ — including DIFC free-zone employees (DEWS) — and how to estimate your figure in seconds.

Last reviewed: 23 June 2026

Quick answer

In Dubai, private-sector gratuity is usually estimated from your basic salary and length of service under the UAE end-of-service rules — not your gross package. The Dubai gratuity calculator gives a quick estimate, but verify your final entitlement if you work in DIFC (DEWS), a special free-zone scheme, a government role, domestic work, or a non-standard contract. This is general guidance, not legal advice.

Who this applies to in Dubai

This page is written for private-sector employees working in mainland Dubai under the UAE federal labour law. If that describes you, your gratuity is calculated using the same national formula that applies across the Emirates — there is no separate "Dubai mainland formula." What changes from person to person is the basic salary figure, the length of service, and whether you are employed inside a Dubai free zone with its own scheme.

How gratuity is calculated for Dubai employees

End of service gratuity in Dubai is based on your basic salary only and your total length of continuous service. The daily wage used in the formula is your monthly basic salary divided by 30.

  • First 5 years of service: 21 days of basic wage for each year.
  • Each year after 5 years: 30 days of basic wage for each year.
  • Less than 1 year of service: no gratuity.
  • Total gratuity is capped at two years' basic wage.
Service period (Dubai mainland)Entitlement per yearCalculation basis
First 5 years21 days of basic wageBasic salary ÷ 30 × 21 × years
After 5 years30 days of basic wageBasic salary ÷ 30 × 30 × extra years
Under 1 yearNot eligible

For a closer estimate, use your exact joining and last-working dates rather than rounded years, since part-years and unpaid leave change the total. The figure is built on basic salary, not gross, and is general guidance — see the full method in our gratuity guide.

Dubai mainland vs free zone (including DIFC)

Most Dubai employers fall under the federal labour law, so the standard formula above applies. The important exception in Dubai is the financial free zone DIFC:

  • Dubai mainland and most free zones — the standard 21/30-day basic-wage formula generally applies. Individual free zones can still set their own procedures, so they are not all identical.
  • DIFC — introduced a workplace savings scheme (DEWS) where employers contribute monthly to a fund instead of paying a single end-of-service lump sum. If your contract is with a DIFC entity, your benefit may be governed by that scheme — see DIFC gratuity & DEWS.
  • Government roles, domestic workers and non-standard contracts — these can fall under separate rules, and part-time or flexible work may be estimated differently. Verify your specific situation with your employer or official sources.

Check which jurisdiction you are in

Your visa, trade licence and employment contract usually indicate whether you are mainland or free zone. If you work for a DIFC-registered company, confirm your end-of-service arrangement with HR before relying on the standard estimate.

Worked example for a Dubai employee

Consider a Dubai mainland employee with a basic salary of AED 9,000 who has completed 4 years of continuous service and is leaving the company:

Dubai example

AED 9,000 basic · 4 years
Daily wage (9,000 ÷ 30)AED 300
Years 1–4 × 21 days84 days
Calculation300 × 84
AED 25,200
Estimated gratuity

Because the employee has under five years of service, only the 21-day rate applies. Allowances such as housing are excluded, and the two-year cap is not reached.

More Dubai examples by salary and service

ScenarioBasic salaryService periodQualifying daysEstimated gratuity
Dubai employeeAED 5,0001 year21 daysAED 3,500
Dubai employeeAED 5,0005 years105 daysAED 17,500
Dubai employeeAED 10,0003 years63 daysAED 21,000
Dubai employeeAED 10,00010 years255 daysAED 85,000

These examples use rounded full years. The calculator can estimate more accurately using exact dates.

How to estimate your Dubai gratuity

  1. Find the basic salary line on your Dubai employment contract or pay slip.
  2. Work out your length of service from your joining date to your last working day.
  3. Subtract any unpaid leave days.
  4. Open the gratuity calculator and enter the figures.
  5. If you are in DIFC, treat the result as indicative only and confirm with your scheme.

What you need before using the Dubai gratuity calculator

Have these details ready for a reliable estimate:

What to have readyWhy it matters
Basic salaryThe estimate is based on basic wage, not gross pay or allowances.
Start dateSets the beginning of your continuous service.
End date or expected last working dayFixes the service length, including any part-year.
Unpaid leave daysLong unpaid periods may be excluded from qualifying service.
Employment typeFull-time, part-time or flexible work can be estimated differently.
Dubai mainland, DIFC or other arrangementDIFC (DEWS) and some free zones follow separate procedures.

Estimate your Dubai gratuity now

Enter your basic salary and dates to get an instant estimate based on the current UAE Labour Law formula.

Open the Calculator

Frequently asked questions

No. Dubai mainland private-sector employees use the same federal formula as the rest of the UAE — 21 days of basic wage per year for the first five years, 30 days per year afterwards, based on basic salary and capped at two years' basic wage. Some Dubai free zones such as DIFC operate their own schemes.
Not always. DIFC introduced a workplace savings scheme (DEWS) that replaced the traditional lump sum for many employees. If you are employed by a DIFC entity, check your specific scheme rather than the mainland formula.
Only your basic salary. Housing, transport and other allowances are excluded, even though they often make up a large part of a Dubai pay package.
No. You must complete at least one full year of continuous service to be eligible for end of service gratuity.
For a Dubai mainland role, five years is 105 days of basic wage (21 days per year). On AED 5,000 basic that is about AED 17,500, and on AED 10,000 basic about AED 35,000. DIFC employees should check their scheme.
Yes. Gratuity accrues for part-years too, so entering your real joining and last-working dates in the calculator is more accurate than rounding to whole years.

Official sources & further reading

Always confirm your entitlement against primary sources. Useful starting points include the UAE Government portal (u.ae), the Ministry of Human Resources and Emiratisation (MOHRE) for mainland employment, and the DIFC Authority for DIFC-specific rules. On this site you can read more in our UAE Labour Law overview and step-by-step gratuity guide.

ℹ️Gratuity Calculator UAE is an independent website and is not affiliated with MOHRE, DIFC or any UAE government authority. All figures are estimates for general guidance only and are not legal or financial advice.

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Reviewed by the Gratuity Calculator UAE Editorial Team
Last reviewed . Written in plain English and checked against the current UAE Labour Law gratuity formula — the 21/30-day basic-wage rule and the two-year cap. Sources: current UAE Labour Law guidance and official UAE government information. How we review content.