UAE Gratuity Calculator & End of Service Benefits Guide

If you are leaving a job in the UAE, understanding your gratuity entitlement is important for financial planning and final settlement verification. End-of-service gratuity is a legal employment benefit governed under current UAE Labour Law and regulated by the Ministry of Human Resources and Emiratisation (MOHRE).

Our UAE Gratuity Calculator helps employees instantly estimate their end-of-service gratuity using their last basic salary and total service period. The calculation follows Federal Decree-Law No. 33 of 2021, which applies across Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain.

How the UAE Gratuity Calculator Works

The calculator estimates gratuity using the official UAE Labour Law formula. Employees become eligible after completing at least one year of continuous service. Gratuity is calculated only on the employee’s last drawn basic salary and excludes housing allowance, transport allowance, bonuses, overtime, commissions, and other benefits.

Steps to Calculate UAE Gratuity

• Enter your final monthly basic salary mentioned in your employment contract.
• Select your joining date accurately.
• Enter your final working day in the company.
• The calculator automatically computes your total years of service.
• Review your estimated gratuity amount and yearly gratuity breakdown.

UAE Gratuity Formula

According to current UAE Labour Law, gratuity is calculated as 21 days of basic salary for each year during the first 5 years of service and 30 days of salary for every additional year after completing 5 years. The maximum gratuity amount cannot exceed the equivalent of two years of basic salary.

Gratuity Calculation Example

Example: If an employee earns AED 6,000 basic salary and completes 7 years of service, gratuity is calculated as follows:

• Daily salary = AED 6,000 ÷ 30 = AED 200 per day.
• First 5 years = 21 days × AED 200 × 5 years = AED 21,000.
• Remaining 2 years = 30 days × AED 200 × 2 years = AED 12,000.
• Estimated total gratuity = AED 33,000.

UAE Gratuity Eligibility Rules

• Employees become eligible for gratuity after completing at least one year of continuous service.
• Employees with 1 to 5 years of service receive 21 days of basic salary for each completed year.
• Employees with more than 5 years of service receive 30 days of salary for every additional year after the first 5 years.
• The total gratuity amount cannot legally exceed two years of basic salary.

Current UAE Labour Law for Gratuity

Under Federal Decree-Law No. 33 of 2021, the distinction between limited and unlimited contracts has largely been removed for gratuity calculations in the UAE private sector.

Under the current law, resignation generally does not reduce gratuity entitlement for eligible employees. Most employees now receive gratuity using the same standard calculation method, provided they complete at least one year of continuous service.

Gratuity is calculated based only on the employee’s final basic salary and total period of employment.

Benefits of Using Our UAE Gratuity Calculator

• Instant gratuity estimation based on current UAE Labour Law.
• Accurate year-wise gratuity breakdown for transparency.
• Helps employees verify HR final settlement calculations.
• Useful for resignation planning, termination settlements, and financial preparation.

Frequently Asked Questions

This gratuity calculator provides estimated values based on current UAE Labour Law and MOHRE guidelines. Final settlements may vary depending on employment contracts, free zone regulations, disciplinary matters, court rulings, company policies, and unpaid leave periods.