UAE Gratuity Calculator
✓ 2026 Labor Law Compliant
Exclude allowances. No minimum salary threshold.
These days will be subtracted from your continuous service calculation.
How Unpaid Leave Affects Your Gratuity Calculation
When calculating your final end-of-service (EOS) gratuity in the UAE, the total duration of your employment is the most critical factor. However, not every calendar day you spent employed at the company counts towards this total. If you took any periods of unpaid leave during your tenure, those days must be legally deducted from your continuous service period before the final gratuity formula is applied.
For example, if you worked at a company for exactly three years but took 30 days of approved unpaid leave during that time, your gratuity will be calculated based on two years and eleven months of service. Because the Ministry of Human Resources and Emiratisation (MOHRE) calculates gratuity pro-rata (proportionately) down to the exact day, failing to subtract your uncompensated time off will lead to an inflated and inaccurate expectation of your final settlement payout.
The Legal Framework: Article 33 Explained
The exclusion of unpaid leave from EOS benefits is strictly governed by the UAE Labour Law. Specifically, Article 33 of Federal Decree-Law No. 33 of 2021 dictates that any period of unpaid leave obtained by an employee shall not be included in their total period of service with the employer. This ensures fairness across the labor market, establishing that gratuity is accrued only for active days of compensated employment or statutory paid leaves.
It is crucial to distinguish mutually agreed unpaid leave from statutory paid leaves, such as your 30-day annual leave, paid sick leave, or paid maternity leave. Days taken under legally mandated paid leave policies are fully counted as part of your continuous service. It is only when you take time off completely without pay—whether due to exhausting your annual leave balances, taking personal sabbaticals, or unauthorized absences—that your service tenure clock is temporarily paused.
Frequently Asked Questions
Are sick leave days deducted from my total service period?▼
No, provided you do not exceed your statutory limit. Standard sick leave backed by a valid medical certificate is recognized as paid (or partially paid) leave up to 90 days per year under UAE law. These days fully count towards your continuous service. Only extended sick leave taken entirely without pay after exhausting your 90-day quota would be deducted.
Does unpaid maternity leave impact end-of-service benefits?▼
The initial statutory 60-day maternity leave (45 days full pay, 15 days half pay) counts completely towards your continuous service length. However, if a mother requires the additional 45 days of unpaid leave due to pregnancy-related medical complications (as permitted under Article 30 of the Labour Law), those specific unpaid days will be excluded from the final gratuity calculation.
How does my employer track my unpaid leave for the final settlement?▼
Employers are mandated by law to maintain accurate attendance and payroll records. Any approved unpaid leave should be documented in writing and will usually be reflected as a deduction in your monthly salary slip during that specific month. During your final settlement, HR will tally these formally documented unpaid days and subtract them from your gross employment calendar days.