Gratuity Calculator Umm Al Quwain ( MOHRE Updated ) 2025

Employees in Umm Al Quwain (UAQ) are entitled to a lump-sum end-of-service gratuity under UAE labour law, provided they complete at least one year of service. This benefit is based on the employee’s basic salary and the length of employment. According to federal law, gratuity pay is 21 days’ basic wage for each year of service up to five years, and 30 days’ wage for each additional year. The total gratuity cannot exceed the wage of two years. Importantly, the calculation excludes allowances (housing, transport, etc.) and unpaid absences. All end-of-service payments must be made within 14 days of the employment ending.

Recent legal reforms have strengthened workers’ entitlements. Under the new UAE Labour Law (Federal Decree-Law No. 33 of 2021), even if an employee resigns, they still get full gratuity after one year of service. (Previously, resigning employees received only 1/3 to 2/3 of the gratuity based on tenure.) In addition, a new Optional Savings Scheme (Cabinet Resolution No. 96 of 2023) allows employers to deposit monthly contributions into a government-backed fund for an employee’s future gratuity, offering an alternative to the lump-sum payment.

• Eligibility: Only employees (expats and nationals) who complete ≥1 year of continuous service are eligible. Less than 1 year means no statutory gratuity.
• Calculation: 21 days’ basic salary/year for the first 5 years; thereafter 30 days/year.
• Caps: The total cannot exceed 2 years’ salary.
• Salary Basis: Gratuity is calculated on your basic salary only (no allowances).
• Payment: Must be paid within 14 days after your last working day.

These rules form the basis of our gratuity calculator UAE, which helps you quickly estimate your end-of-service benefits.

Our Gratuity Calculator for Umm Al Quwain

We are proud to offer a tailored gratuity calculator for Umm Al Quwain residents, designed to simplify the calculation process while ensuring accuracy and compliance with UAE labor laws. Our tool is user-friendly, free, and accessible to employees and employers across various sectors.

How to Use the Calculator

1. Visit our website gratuitycalculatoruae.ae.
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. Click “Calculate” to receive an instant gratuity estimate.

Sector-Specific Rules in Umm Al Quwain

Private Sector (Expats & Nationals)

In Umm Al Quwain’s private sector, the federal UAE Labour Law applies. Expatriate employees are entitled to gratuity as described above. Emirati nationals working in the private sector contribute to the General Pension & Social Security Authority (GPSSA) instead of receiving a standard gratuity payment. Their employers deduct a pension contribution that leads to pension and an equivalent end-of-service benefit as per Federal Law No. 7 of 1999.

Free Zone Workers (e.g., UAQFTZ)

Employees in Umm Al Quwain Free Trade Zone (UAQFTZ) and other free zones generally follow UAE federal labour rules for gratuity. This means a UAQFTZ worker gets the same 21-day/30-day calculation and entitlement as elsewhere in the UAE. Some free zones may also offer the new alternative saving scheme mentioned above. For example, UAQFTZ recently highlighted MOHRE’s new end-of-service investment scheme for workers. In practice, UAQFTZ staff should use the same UAE gratuity formula (based on basic salary) and are subject to the same caps and deadlines.

Domestic Workers

Under Federal Decree-Law No. 9 of 2022 (effective Dec 2022), the rules for domestic workers (housemaids, drivers, etc.) were updated. The new law does not guarantee a mandatory gratuity. Instead, Article 22 empowers the Cabinet to set a system for domestic worker gratuity. A Cabinet resolution (No. 106 of 2022) was issued, but it did not establish an entitlement. In short, currently there is no statutory end-of-service gratuity for domestic workers. Employers may still choose to pay a bonus, but it is not a legal requirement.

Government Employees (Nationals & Expats)

Government sector workers follow different benefits. UAE nationals working in the government (federal and local) are covered by the pension law (Federal Law No. 7 of 1999). They make pension contributions and receive retirement and end-of-service benefits through GPSSA rather than a direct gratuity payment. 

Expatriates employed by government entities do not have a separate public pension; in practice many are still entitled to a gratuity or severance per their employment contract, often following the same 21/30-day formula. However, specific terms can vary by department or ministry, so it’s important to check each employment contract. Generally, an expat civil servant in Umm Al Quwain would still qualify for an EOSB as per the Labour Law rules if covered by a UAE employment contract.

Gratuity Calculation Example

Consider an example to see how gratuity is worked out. Suppose you are an expatriate employee in Umm Al Quwain with a basic salary of AED 8,000 per month, and you have completed 6 years of continuous service. Your gratuity would be calculated as follows:

• First 5 years: 5 years × (21 days of pay per year) = 5 × (21/30 × AED 8,000) = AED 28,000.
• Additional 1 year: 1 year × (30 days of pay) = 1 × (30/30 × AED 8,000) = AED 8,000.
• Total Gratuity = AED 28,000 + AED 8,000 = AED 36,000.

This means the employer would owe you AED 36,000 as end-of-service gratuity. (If you had an unlimited contract, resigning after one year would also yield the same full amount under the new law.)

Our calculator automates this process. You simply enter your basic salary and years of service, and it applies the 21/30-day rule to give the gratuity amount.

Conclusion 

Knowing your end-of-service rights is crucial. In Umm Al Quwain and the wider UAE, eligible employees receive a gratuity based on basic salary and years of service (21 days per year for the first 5 years, 30 days thereafter). Recent legal changes mean even those who resign after one year get full gratuity. To ensure you get the correct amount, use the Umm Al Quwain Gratuity Calculator on our site. It’s fast and accurate, reflecting all current UAE labour laws. 

Whether you work in the private sector, a free zone (like UAQFTZ), or for a government entity, the calculator will help you know your payout. Stay informed about your rights and use our calculator to plan your finances confidently as you conclude your employment.