Our Methodology

Legal basis: Federal Decree-Law No. 33 of 2021, Article 51

Salary base: Basic salary only (allowances excluded).

• •21 days of basic salary per year for the first 5 years
• •30 days of basic salary per year thereafter
• •Total capped at 2 years' basic salary
• •Minimum 1 year of continuous service to qualify
• •No resignation penalty since the 2021 reform

We also model the UAE Savings Scheme (the voluntary alternative scheme established by Cabinet Resolution 96/2023, with MoHRE rollout guidance through 2025) for enrolled employees, where the traditional gratuity is replaced by employer contributions to an investment fund.

Legal basis: Labour Law (Royal Decree M/51), Articles 84–88

Salary base: Basic salary plus all fixed monthly allowances (bonuses and commissions excluded).

• •Half a month's wage per year for the first 5 years (Art. 84)
• •One month's wage per year thereafter (Art. 84)
• •Resignation tier reductions (Art. 85): under 2 years = nil; 2–5 years = 1/3; 5–10 years = 2/3; 10+ years = full
• •Full award for force majeure and for female employees resigning within 6 months of marriage or 3 months of childbirth (Art. 87)
• •Payment due within two weeks / per Art. 88

Termination (other than for Article 80 misconduct) and contract expiry always pay the full award, with no resignation reduction.

Legal basis: Labour Law No. 14 of 2004, Article 54

Salary base: Basic salary only.

• •A minimum of 21 days' basic salary per year of service (we apply 21 days for years 1–5 and 28 days thereafter, a common employer practice)
• •No statutory cap on the total
• •Minimum 1 year of continuous service
• •No resignation penalty since the 2020 reforms

Where a contract specifies a higher rate, the contract prevails — our figure is the statutory floor.

Legal basis: Private Sector Labour Law No. 6 of 2010, Article 51

Salary base: Basic salary only (indemnity).

• •15 days' basic salary per year for the first 5 years
• •One month's basic salary per year thereafter
• •Resigning employees need at least 3 years of service to qualify
• •Terminated employees receive the full entitlement with no minimum-service bar

Our calculator follows the widely-applied reading of Article 51 for private-sector indemnity.

Legal basis: Labour Law 2012 (amended) + the SIO scheme (March 2024)

Salary base: Basic salary for the legacy portion; total salary (basic + allowances) for the SIO portion.

• •Service before 1 March 2024: legacy indemnity at 15 days' basic salary per year
• •Service from 1 March 2024: employer contributions to the Social Insurance Organisation (SIO) — 4.2% of total salary per month for the first 36 months of the scheme, 8.4% thereafter
• •The two portions are calculated separately and added together

The SIO figure is an estimate of employer contributions. Your actual SIO fund balance reflects the SIO's investment of those contributions — check it with the SIO directly.

Legal basis: Royal Decree No. 35 of 2003, amended by Royal Decree No. 53 of 2023

Salary base: Basic salary only.

• •Service before 1 July 2023: 15 days' basic salary per year
• •Service from 1 July 2023: one full month's basic salary per year
• •The two periods are split and totalled automatically
• •Minimum 1 year of service; no resignation penalty

The July 2023 amendment significantly increased the rate — we apply the correct rate to each portion of your service.