UAE Gratuity Calculator for Resignation
Compare the end-of-service gratuity on resignation and on termination by the employer in the UAE under Article 51 of Federal Decree-Law No. 33 of 2021.
In the UAE the gratuity is calculated on the last basic salary only, excluding allowances.
Article 51 — no resignation reduction under the 2021 law
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Your end-of-service gratuity
43,397.26 AED
Based on a 8,000.00 AED basic salary and 7 years of service
Breakdown
| Period | Years | Amount |
|---|---|---|
| First five years21 days' wage per year | 5 | 27,616.44 |
| After the fifth year30 days' wage per year | 2 | 15,780.82 |
How it's calculated
Under Federal Decree-Law No. 33 of 2021, resigning no longer reduces the end-of-service gratuity: Article 51 gives a worker who has completed one year of continuous service 21 days' wage for each of the first five years and 30 days' wage for each year after that, calculated on the last basic wage, whatever the reason the contract ended.
The old Federal Law No. 8 of 1980 tied the gratuity to the reason for leaving in Article 137: one-third for a worker who resigned after one to three years, two-thirds from three to five years, and the full gratuity after five years. That ladder was repealed when the 2021 law came into force on 2 February 2022, although some websites still show it.
A resigning worker must still serve the notice period agreed in the contract, between 30 and 90 days under Article 43; otherwise the employer is owed compensation equal to the wage for the notice period or its remaining part, a separate amount from the gratuity. The one-year minimum of continuous service also still applies, so nothing is due to a worker who resigns before it. A worker who leaves without notice for one of the Article 45 reasons, such as the employer breaching its obligations, keeps all rights in full.
- Resignation, termination and contract expiry: the same formula under Article 51
- The only condition for entitlement: one year of continuous service
- Notice period of 30 to 90 days under Article 43, with its compensation calculated separately
- Calculated on the last basic wage: 21 days per year for the first five years and 30 days after that
Worked example
An employee whose last basic salary is 10,000 AED resigns after 7 years of continuous service and serves the full notice period.
- Daily wage: 10,000 × 12 ÷ 365 = 328.77 AED
- First five years: 5 × 21 × 328.77 = 34,520.55 AED
- Next two years: 2 × 30 × 328.77 = 19,726.03 AED
- Gratuity on resignation: 34,520.55 + 19,726.03 = 54,246.58 AED
Had the employer terminated the contract instead, the result would also be 54,246.58 AED. For comparison, under the old law a worker resigning after 4 years received only two-thirds of the gratuity; today the full amount is due.
FAQ
Is the gratuity reduced if I resign in the UAE?
No. Under Article 51 of Decree-Law 33/2021 the gratuity is calculated the same way whether you resigned or your contract was terminated, as long as you completed one year of continuous service. The one-third and two-thirds ladder of the old law no longer applies.
I resigned before completing a year. Am I owed anything?
No. Article 51 requires at least one year of continuous service before any gratuity is due. After the first year, fractions of a year are paid pro rata, so a worker who resigns after 1 year and 6 months receives a gratuity for 1.5 years.
What if I resign without serving the notice period?
The gratuity remains due, but Article 43 requires the party that fails to observe the notice period to compensate the other with the wage for the notice period or its remaining part, and that compensation is settled against your final entitlements. Use the notice period pay calculator to see the amount.
Is it different for a fixed-term contract?
No. Employment contracts became fixed-term under the 2021 law, and the gratuity is calculated under the same Article 51 on resignation, termination or expiry of the term. Leaving before the end of the term no longer forfeits the gratuity as it did under the old law.
Do allowances count in the gratuity of a resigning worker?
No. The gratuity is calculated on the last basic wage only under Article 51, whether you resigned or were terminated, and housing, transport and other allowances are excluded.
When is the gratuity paid to a resigning worker?
Under Article 53 the employer must pay the wage and all other entitlements, including the end-of-service gratuity, within 14 days of the contract end date, and this does not differ between resignation and termination.
Related tools
Sources
✓ Reviewed September 2026- Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations — UAE Legislation portal
- Ministry of Human Resources and Emiratisation (MOHRE) — official website
Statutory articles this calculator applies
- UAE Federal Decree-Law No. 33 of 2021, Article 51 — end-of-service benefits
- End-of-service calculator — Ministry of Human Resources and Emiratisation
UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (in force 2022-02-02) and Cabinet Resolution No. 1 of 2022 (Executive Regulations)