UAE Gratuity Calculator
✓ Death Gratuity (No 1-year minimum)
Exclude allowances. No minimum salary threshold.
How Death Gratuity is Calculated in the UAE
The death of an employee is one of the most sensitive scenarios handled under UAE labor regulations. According to Article 15 of Federal Decree-Law No. 33 of 2021, the death of a worker legally terminates the employment contract, but it absolutely does not erase their accrued financial rights. The end-of-service gratuity is calculated in full, without any punitive deductions, based on their last drawn basic salary. The standard calculation formula applies: 21 days of basic salary for each of the first five years of service, and 30 days of basic salary for every subsequent year.
To ensure that families do not face undue financial hardship, the Ministry of Human Resources and Emiratisation (MOHRE) enforces strict timelines through Resolution No. 720 of 2023. Employers are legally mandated to calculate and hand over all financial entitlements—including the end-of-service gratuity, pending wages, and compensation for unused annual leave—to the employee’s family or nominated beneficiaries within exactly 10 days of the employee’s death, or within 10 days of the employer becoming aware of it.
Beneficiaries, Wills, and Unclaimed Funds
Disbursing the final settlement requires identifying the rightful legal heirs. If the deceased employee formally nominated beneficiaries in their official employment file, or if they left behind a legally registered will (such as through the DIFC or ADGM Wills Service), the employer will disburse the funds directly according to those explicit instructions. In the absence of a registered will or nomination, the gratuity distribution is governed by law. For Muslim expatriates, the funds are distributed according to Sharia inheritance principles, while non-Muslims are typically subject to the inheritance laws of their home country.
In circumstances where an employer cannot locate, identify, or establish contact with the deceased’s legal heirs within the 10-day window, the company cannot simply hold onto the funds. Under UAE law, the employer must deposit the full gratuity and all related final settlement amounts into the MOHRE treasury account or the relevant labour court. The authorities then assume the responsibility of safeguarding the funds and eventually distributing them to the verified beneficiaries once they come forward.
Frequently Asked Questions
Does the family get gratuity if the employee worked for less than a year?▼
Yes. While standard resignations require a minimum of one year of continuous service to qualify for gratuity, the rules adapt in the event of an employee’s death. The strict one-year requirement is waived, and the end-of-service gratuity is calculated proportionately for the exact period served and disbursed to the legal heirs.
Is work-related death compensation different from gratuity?▼
Yes, they are completely separate entitlements. If the employee’s death was the direct result of a documented workplace injury or occupational illness, the employer must pay a specific death compensation equal to 24 months of the employee’s basic wage. By law, this compensation cannot be less than AED 18,000 and is capped at a maximum of AED 200,000. This is paid in addition to the standard end-of-service gratuity.
What documents do families need to claim the gratuity?▼
To successfully claim the final settlement, the legal heirs typically need to provide an officially attested death certificate, copies of the deceased’s passport and UAE visa, and an authenticated heirship or succession certificate. If the heirship certificate is issued outside the UAE, it must be fully translated into Arabic and attested by the UAE Ministry of Foreign Affairs (MOFA).