UAE Gratuity Calculator
✓ 2026 Labor Law Compliant
Exclude allowances. No minimum salary threshold.
Is Gratuity Calculated Differently Across Emirates?
A common question among expatriates is whether their end-of-service benefits change depending on which emirate they work in. The short answer is no. Whether your employment visa is issued in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, or Umm Al Quwain, the calculation remains exactly the same for mainland companies.
Employment across the UAE mainland is governed by a unified federal law: Federal Decree-Law No. 33 of 2021. This mandates that all mainland employees who have completed at least one year of continuous service are entitled to 21 days of basic salary for each of their first five years, and 30 days of basic salary for every subsequent year. There are no geo-targeted variations or local emirate taxes that alter this formula.
The Exception: DIFC and ADGM Free Zones
While standard free zones (such as DMCC, JAFZA, or SAIF Zone) generally adhere to the federal UAE Labour Law for gratuity calculations, the UAE’s independent financial free zones have their own distinct legal frameworks. If you work in the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM), the traditional lump-sum gratuity payout does not apply.
In the DIFC, the end-of-service gratuity system was replaced by the DIFC Employee Workplace Savings (DEWS) scheme. Under this system, employers make mandatory monthly contributions (5.83% of basic salary for the first five years, and 8.33% thereafter) into a regulated investment fund. ADGM has implemented a similar mandatory workplace savings scheme. Therefore, if you are employed in these specific financial jurisdictions, you will rely on your accumulated savings fund rather than a standard gratuity calculation at the end of your tenure.
Frequently Asked Questions
Does my gratuity change if I relocate from a Dubai company to a Sharjah company?▼
No, your geographical location within the UAE mainland does not affect how your gratuity is calculated. Both Dubai and Sharjah mainland entities are strictly governed by the same UAE Federal Labour Law, ensuring your end-of-service payout follows the exact same 21-day and 30-day formula.
Do standard Free Zones use a different gratuity calculator?▼
Generally, no. Standard free zones (like JAFZA in Dubai or KIZAD in Abu Dhabi) align their end-of-service benefit regulations with the federal UAE Labour Law. Only the DIFC in Dubai and the ADGM in Abu Dhabi operate completely separate employment savings schemes (like DEWS) in lieu of traditional gratuity.
Are there any local Emirate taxes deducted from my gratuity?▼
No. End-of-service gratuity in the UAE is paid out completely tax-free, regardless of which Emirate you reside or work in. Employers are not permitted to make localized municipal or tax deductions from your final legal settlement.