UAE Gratuity Calculator for Resignation
- UAE Federal Decree-Law No. 33 of 2021, Article 51: end-of-service benefits
- Read against the statuteSeptember 2026
UAE Federal Decree-Law No. 33 of 2021, Article 51: end-of-service benefits
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To check this, or for anything official:
Ministry of Human Resources and Emiratisationmohre.gov.ae
See what you keep if you resign, and what it costs against being let go.
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.
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How is gratuity calculated on resignation?
- Monthly wage = basic only
- first 5 years: 21 days of wage per year · after 5 years: 30 days of wage per year
- Gratuity = the bands added, × the entitlement fraction
Symbols
- wage
- The basic wage alone, without allowances
- years
- Service including fractions of a year, not whole years only
- entitlement fraction
- Full on termination or contract expiry, and possibly reduced on resignation depending on the country
What is the gratuity on resignation at 10,000?
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 ÷ 30 = 333.33 AED
- First five years: 5 × 21 × 333.33 = 35,000.00 AED
- Next two years: 2 × 30 × 333.33 = 20,000.00 AED
- Gratuity on resignation: 35,000.00 + 20,000.00 = 55,000.00 AED
Had the employer terminated the contract instead, the result would also be 55,000.00 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.
Why does resigning change the amount?
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 That ladder was repealed when the 2021 law came into force on 2 February 2022, although some websites still show it.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
The same calculation in other Gulf countries
| Country | Wage basis | Rate | On resignation | |
|---|---|---|---|---|
 Saudi ArabiaSaudi Labor Law, Article 84: end-of-service award | Basic plus fixed allowances | half a month's wage for the first 5 years, then a month's wage | Reduced by length of service | Gratuity on resignation, Saudi Arabia |
 UAEUAE Federal Decree-Law No. 33 of 2021, Article 51: end-of-service benefits | Basic wage only | 21 days of wage for the first 5 years, then 30 days of wage, capped at 24 months of wage, from 1 year of service | No reduction | This page |
 QatarQatar Labour Law No. 14 of 2004, Article 54: end-of-service gratuity | Basic wage only | 21 days of wage for every year, from 1 year of service | No reduction | End-of-service gratuity, Qatar |
 KuwaitKuwait Labour Law No. 6 of 2010, Article 51: end-of-service indemnity | Basic plus fixed allowances | half a month's wage for the first 5 years, then a month's wage, capped at 18 months of wage | Reduced by length of service | End-of-service indemnity, Kuwait |
 OmanOman Labour Law, Article 61: end-of-service gratuity | Basic wage only | a month's wage for every year, the rule in force now | No reduction | End-of-service gratuity, Oman |
 BahrainBahrain Labour Law, Article 116: leaving indemnity | Basic wage only | half a month's wage for the first 3 years, then a month's wage | No reduction | Leaving indemnity, Bahrain |
Questions people thinking of resigning ask
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.
Sources
Read against the statuteReviewed 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
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)