Fujairah Gratuity Calculator Understand Your End-of-Service Benefits

Fujairah follows the UAE’s federal labour law, including the updated rules under Federal Decree-Law No. 33 of 2021 (effective Feb 2, 2022). This law modernized end-of-service (gratuity) rules for employees across the UAE. In Fujairah, any eligible worker who has completed one full year of continuous service is entitled to a lump-sum gratuity based on their last basic salary. This end-of-service payment provides financial security when leaving a job. As a mandatory benefit, it offers an important safety net and stabilization for employees facing a job transition.

Standard Gratuity Calculation

Under UAE law, the gratuity is calculated on the employee’s basic salary (excluding allowances) and depends on years of service. The formula is:

• Less than 1 year: No gratuity is owed.
  
• 1 to 5 years: 21 days of basic salary for each year of service.
  
• More than 5 years: 30 days of basic salary for each year of service after the first five years.

In all cases, the total gratuity cannot exceed the equivalent of two years’ salary. For example, an employee with 6 years of service would get 5 years at 21 days/year and 1 year at 30 days, subject to the two-year cap. Remember, gratuity kicks in only after completing one year of continuous employment.

Gratuity Laws in Fujairah

Fujairah adheres to the same gratuity laws as the rest of the UAE, with no emirate-specific variations. The UAE Labour Law mandates that employers pay gratuity to expatriate employees who have completed at least one year of continuous service. UAE nationals are excluded, as they are covered by the National Pension System. The gratuity amount depends on the employee’s basic salary, contract type (limited or unlimited), length of service, and reason for termination.

Eligibility Criteria

• Minimum Service: Employees must have worked for at least one year to qualify.
• Expatriates Only: UAE nationals are not eligible due to pension plans.
• Contract Type: Both limited (fixed-term) and unlimited (open-ended) contracts qualify, but calculations differ.
• Termination Conditions: Gratuity may be denied if an employee resigns without notice, is terminated for misconduct (e.g., violence, property damage), or lacks legal proof of contract.

Calculation Basis

Gratuity is calculated using the employee’s last basic salary, excluding allowances like housing, transport, or utilities. The formula varies by contract type and service duration, with a cap at two years’ total salary.

Limited Contract

Service Duration	Gratuity Formula
1–5 years	(Basic salary × 21 days × service years) / 30
Over 5 years	(Basic salary × 30 days × service years) / 30

Unlimited Contract (Resignation)

Service Duration	Gratuity Formula
Less than 1 year	No gratuity
1–3 years	1/3 of 21 days’ basic salary per year
3–5 years	2/3 of 21 days’ basic salary per year
Over 5 years	21 days for first 5 years, 30 days per year thereafter

Unlimited Contract (Termination)

Service Duration	Gratuity Formula
Less than 1 year	No gratuity
1–5 years	21 days’ basic salary per year
Over 5 years	21 days for first 5 years, 30 days per year thereafter

Why Choose our Gratuity Calculator Fujairah?

• Reliability: Backed by a trusted UAE news source.
• User-Friendly: Simple interface requiring minimal inputs.
• Accuracy: Updated to reflect Federal Decree-Law No. 33 of 2021.
• Accessibility: Free and available online.

How to Use the Calculator

1. Access our calculator.
2. Input your basic salary (last salary, excluding allowances).
3. Enter your years of service (minimum one year).
4. Select your contract type (limited or unlimited).
5. Specify the reason for leaving (resignation or termination).
6. Review the calculated gratuity amount, which adheres to UAE labor law.

Who Qualifies for Gratuity?

Private Sector Workers (Nationals & Expats)

In the private sector, expatriate (non-UAE national) employees are generally eligible for gratuity under the rules above once they have worked for one year. Their gratuity is based on their final basic salary. UAE national (Emirati) private-sector employees, however, do not receive this gratuity payment; instead, they contribute to and receive benefits from the UAE pension and social security system. In short, expatriates in Fujairah’s private businesses earn a statutorily-mandated end-of-service payment, while Emiratis earn retirement benefits under pension law.

Free Zone Employees

Many employees in Fujairah’s free zones work under special regulations. Free Zone Authority rules can differ from federal law. In fact, “each free zone has its own employment law”. The Fujairah Free Zone Authority (FFZA) often adopts similar end-of-service terms, but it’s important to check local rules. If a free-zone job falls under the UAE labour law, then the same 21/30-day formula and two-year cap apply. Free zone workers should verify with their zone’s HR department or review the FFZA employment regulations for precise entitlements.

Domestic Workers

Domestic helpers and household staff in the UAE are covered by a separate Domestic Workers Law (Federal Decree-Law No. 9 of 2022). Unlike the general labour law, the current law no longer guarantees an end-of-service gratuity. The previous domestic workers law had provided a gratuity, but the 2022 update removed any fixed entitlement. In practice, most domestic workers in Fujairah (and across the UAE) are not paid a statutory gratuity unless their specific contract includes one. Employers and domestic employees should carefully review their contract terms and the Domestic Workers Law to understand any end-of-service provisions.

Government Sector Staff

In Fujairah’s public sector, the rules differ between UAE nationals and expatriate employees. Emirati nationals working for the federal or local government receive retirement benefits through the government pension system, not a cash gratuity. Non-UAE national (expatriate) government employees do get an end-of-service benefit, but the rate is more generous than the private sector. For federal government ministries and entities, an expatriate earns:

• 1 month’s basic salary per year for the first five years of service,
  
• 1.5 months per year for the next five years, and
  
• 2 months per year for each year thereafter.
  

These amounts are calculated on the average of the last five years’ salaries. Fujairah’s local government generally follows the same approach. In all cases, an expat must have at least one year of service to qualify.

Employer Responsibilities

Employers in Fujairah must calculate and pay gratuity accurately and promptly. By law, all end-of-service entitlements are based on the basic salary and the formulas above. Any deductions (e.g. loans or owed amounts) should be made according to legal rules. Crucially, employers must pay the full gratuity within 14 days of the employment contract’s end. Failure to pay or miscalculating the gratuity can lead to penalties under UAE labour law. In short, employers should ensure compliance by using the correct formula and timing the payout properly.

Calculate Your Gratuity

Use our Fujairah Gratuity Calculator to get an instant estimate of your end-of-service benefit. Simply enter your basic salary and length of service, and the tool will apply the UAE labour law formula to show you the gratuity you’re entitled to. This quick, user-friendly calculator lets you plan ahead by revealing your gratuity payout in seconds.

Start calculating now to understand your gratuity entitlement and ensure you receive the benefits you’ve earned under Fujairah’s labour regulations!