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Calculate end-of-service gratuity under UAE Labour Law from basic salary and years of service.
Estimated end-of-service gratuity
AED 65,161
- Total service
- 7.01 years (2,557 days)
- Daily basic wage
- AED 394.52
- First 5 years (21 days / year)
- AED 41,425
- After 5 years (30 days / year)
- AED 23,736
Estimate for private-sector employees under UAE Federal Decree-Law No. 33 of 2021, based on basic salary only. Unpaid leave is excluded from service. DIFC, ADGM and government employees follow different rules.
How UAE gratuity is calculated
Private-sector employees with at least one year of continuous service earn 21 days of basic salary for each of the first five years, and 30 days for each year after that. Partial years are paid pro rata. The daily wage is the last basic monthly salary × 12 ÷ 365.
The maximum gratuity
Total gratuity cannot exceed two years’ basic wage. Allowances such as housing and transport are not included in the calculation.
Booking gratuity in your accounts
Gratuity is a liability that grows every month. Under IFRS it should be provided for in your financial statements, which is part of our monthly payroll and bookkeeping service.
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