ADGM Gratuity Calculator 2026: End of Service in ADGM

🏢 ADGM Gratuity Calculator

ADGM Employment Regulations 2024, section 61

✓ FREE TOOL

💰 Monthly basic salary (AED)

Total monthly wage incl. allowances (optional)

📅 Service period

ADGM: gratuity is due on termination for any reason once you complete 1 year of continuous service (s.61(1)).

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Pre-filled with a typical salary.
Adjust and click Calculate.

📊 Gratuity accrual over years of service

Calculate your gratuity above to see the year-by-year accrual chart

ADGM gratuity = 21 days of basic wage per year for the first 5 years + 30 days per year after that, once you complete one year of continuous service. ADGM divides the annual basic wage by 365 to get the daily rate, treats basic wage as at least 50% of total wages, and requires payment within 21 calendar days of employment ending.

ADGM is not a MOHRE case. Disputes go through ADGM processes (the ADGM Courts), not the MOHRE complaint route used for mainland employers.

FREE ZONE RULES

How gratuity works in Abu Dhabi Global Market

ADGM entities follow the ADGM Employment Regulations 2024, not the federal Labour Law. Section 61 sets the gratuity, and the ADGM Employment Affairs Office (EAO) FAQs show how to calculate it. This calculator applies the ADGM method: annual basic wage ÷ 365 for the daily rate, a minimum basic wage of 50% of total wages, and no two-year cap.

You need at least one year of continuous service with the employer.
21 days of basic wage for each of the first five years, then 30 days for each year after that.
Daily rate = annual basic wage ÷ 365 (ADGM EAO FAQs). Example: AED 100,000 annual basic for 3 years = AED 17,260.
Basic wage is treated as at least 50% of total wages, even if the contract states a lower figure.
Part years are paid pro rata after the first year, and gratuity is due whatever the reason employment ends.
Section 61 does not apply the federal two-year cap.
Gratuity and other final payments are due within 21 calendar days after employment ends.

Example ADGM gratuity calculations

INVESTMENT ASSOCIATE

Basic salary: AED 24,000/month

Service period: 3 years

Daily wage: AED 789.04 × 63 days

Estimated gratuity: AED 49,710

RISK MANAGER

Basic salary: AED 36,000/month

Service period: 6 years

Daily wage: AED 1183.56 × 135 days

Estimated gratuity: AED 159,781

CORPORATE SERVICES OFFICER

Basic salary: AED 16,000/month

Service period: 4 years

Daily wage: AED 526.03 × 84 days

Estimated gratuity: AED 44,186

SENIOR EXECUTIVE

Basic salary: AED 60,000/month

Service period: 9 years

Daily wage: AED 1972.60 × 225 days

Estimated gratuity: AED 443,836

WORKED EXAMPLES

ADGM gratuity worked examples, step by step

The first example is the one the ADGM Employment Affairs Office (EAO) publishes in its FAQs on the 2024 Regulations. The others use the same method with different numbers.

EXAMPLE 1: THE EAO EXAMPLE, 3 YEARS

Annual basic wage at termination: AED 100,000

Daily rate: AED 100,000 ÷ 365 = AED 273.97

21 days: AED 273.97 × 21 = AED 5,753 for one year

3 years: AED 5,753 × 3

Gratuity: AED 17,260

EXAMPLE 2: 7 YEARS, AED 10,000 A MONTH BASIC

Annual basic wage: AED 10,000 × 12 = AED 120,000

Daily rate: AED 120,000 ÷ 365 = AED 328.77

Years 1 to 5: 21 days × 5 = 105 days

Years 6 and 7: 30 days × 2 = 60 days

Total days: 165, so AED 328.77 × 165

Gratuity: AED 54,247 (no cap applied)

EXAMPLE 3: THE 50% BASIC FLOOR, 4 YEARS

Contract basic: AED 2,000 a month. Total wage: AED 5,000 a month (AED 60,000 a year)

Basic is below 50% of annual wages, so the EAO says to use AED 30,000 a year

Daily rate: AED 30,000 ÷ 365 = AED 82.19

4 years × 21 days = 84 days, so AED 82.19 × 84

Gratuity: AED 6,904

The same Example 2 salary under the federal formula (monthly basic ÷ 30) gives AED 55,000 for 7 years, so the two methods land close together. The gap comes from dividing by 365 instead of 30, and from the ADGM rule that has no two year cap. Enter your own figures in the calculator above, with total monthly wage so that the 50% floor is applied.

ADGM VS MAINLAND

How ADGM differs from the mainland rules

Point	ADGM (Regulations 2024, section 61)	Mainland (Decree-Law 33 of 2021)
Daily rate	Annual basic wage ÷ 365	Monthly basic wage ÷ 30
Basic wage floor	At least 50% of annual wages	Basic wage as stated in the contract
Two year cap	Not in section 61	Article 51(6)
Eligibility	One year of continuous service, paid whatever the reason for termination, including termination for cause	One year of continuous service for foreign workers (Article 51(1))
Payment deadline	21 calendar days after the last day	14 days after the contract ends (Article 53)
UAE and GCC nationals	Not eligible if enrolled in the federal pension scheme, unless the pension authority approved opting out in writing	Covered by the pensions law

An employer may offer a pension or savings scheme in writing as an alternative to gratuity. If you choose it, you are not entitled to gratuity unless you agreed otherwise with the employer. Disputes go through ADGM bodies, not MOHRE. For the full list of zones and worker types, see the gratuity calculators hub. DIFC works differently again: read what is DEWS.

ADGM gratuity FAQs

Under section 61 of the ADGM Employment Regulations 2024, you get 21 days of basic wage per year for the first five years and 30 days per year after that, once you have one year of continuous service. The daily rate is the annual basic wage divided by 365.

Section 61 does not contain the two-year cap from the federal Labour Law. This calculator applies no cap for ADGM.

Within 21 calendar days after employment ends, according to the ADGM EAO guidance.

ADGM treats basic wage as at least 50% of total wages for gratuity. Enter your total monthly wage in the calculator and it applies the 50% floor automatically.

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