Question 1

How is gratuity calculated in the UAE?

Accepted Answer

Under Federal Decree-Law 33/2021, private-sector workers earn 21 days of basic salary for each of the first five years and 30 days for each year after that, based on the last basic salary. The total is capped at two years' basic pay.

Question 2

Does resignation reduce gratuity in the UAE?

Accepted Answer

No. The 2021 law removed the old resignation reductions, so resignation and termination are now paid the same, provided you completed at least one year of service.

Question 3

Is gratuity different for domestic workers in the UAE?

Accepted Answer

Yes. Federal Decree-Law 9/2022 sets no fixed gratuity formula for domestic workers, so their end-of-service pay depends on the employment contract. A common contract term is 14 days' wage per year of service.

Gratuity Calculator for the UAE

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