Limited Contract Gratuity Calculator UAE

Calculate your end of service gratuity for a UAE limited (fixed-term) contract. Since February 2022, every employment contract in the UAE is a limited contract under Federal Decree-Law No. 33 of 2021 – and the good news is the gratuity rules are the most generous they have ever been: full payment whether you resign or are terminated.

Limited Contract Gratuity Calculator Last verified: 6 Jul 2026
Sources: Federal Decree-Law No. 33 of 2021, Art. 51 ยท MOHRE
Frequently asked questions
How is gratuity calculated on a limited contract in the UAE?
Exactly as the law prescribes for all current contracts: 21 days of basic pay per year for the first five years and 30 days per year after that, based on your last basic salary divided by 30, capped at two years of basic pay. Since February 2022 all UAE employment contracts are fixed-term (limited).
Do I lose gratuity if I resign from a limited contract?
No. Under Federal Decree-Law No. 33 of 2021 you receive full gratuity for your completed years of service whether you resign or are terminated, as long as you have completed at least one year.
What happens if I leave before my limited contract ends?
Your gratuity for completed service is unaffected, but contractual notice rules still apply and compensation clauses in your contract may apply separately. Gratuity itself is not reduced for early exit under the current law.

How limited contract gratuity works

The formula uses your last basic salary only – allowances are excluded. Your daily wage is your basic salary divided by 30. You earn 21 days of basic pay for each of your first five years and 30 days for every year after that, pro rata for partial years once you have completed at least one full year. The total is capped at two years of basic pay.

Resignation no longer costs you gratuity

Under the old law, resigning early from an unlimited contract could cut your gratuity by a third or two thirds. That penalty is gone. On a current limited contract you receive your full accrued gratuity regardless of who ends the employment. If your service started before February 2022 on an unlimited contract, check our unlimited contract gratuity calculator for how the legacy rules may apply to that period.

What else goes into your final payout

Gratuity is only one part of your exit money. Unused annual leave is encashed on your basic salary, and any pending salary days are paid on gross. Use the final settlement calculator to see the complete number, or the leave salary calculator for the encashment alone. Everything must be paid within 14 days of your contract end date.

Estimates for information only, not legal advice. DIFC and ADGM free zones have their own rules – see the DIFC DEWS calculator and ADGM gratuity calculator.