๐Ÿ‡ฆ๐Ÿ‡ช Free calculators, built around current UAE rules โ€” VAT, gratuity, RERA rent & more.
WORK & LABOUR

UAE Gratuity Calculator

End-of-service benefit estimate โ€” based on current UAE rules. Adjust the inputs and press Calculate.

Gratuity is based on basic salary only, not allowances.
Use a decimal for part years, e.g. 5.5 for 5 years 6 months.
Result

Fill in the form and press Calculate to see your result here.

How UAE gratuity is calculated

End-of-service gratuity in the private sector is set out in UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. It applies to employees who have completed at least one year of continuous service, and is calculated on basic salary only โ€” housing, transport and other allowances are excluded.

The formula

  • For each of the first 5 years of service: 21 days' basic pay per year.
  • For every year beyond 5: 30 days' basic pay per year.
  • Total gratuity is capped at two years' total basic salary.
  • Daily wage is taken as basic monthly salary รท 30.

This calculator applies the same formula regardless of who ends the contract, reflecting the unified approach under the 2021 law. Free zones such as DIFC and ADGM have their own separate employment regulations and may calculate gratuity differently โ€” this tool is based on UAE mainland labour law.

Frequently asked questions

Does gratuity apply if I resign?

Under the current federal labour law, gratuity is generally payable after one year of continuous service regardless of whether you resign or are terminated, subject to any deductions your contract or the law allows. Confirm your specific entitlement with MOHRE or your HR department.

Is gratuity calculated on gross or basic salary?

Basic salary only. Housing allowance, transport allowance, and other benefits are excluded from the calculation.

Does this apply to free zones like DIFC or ADGM?

No โ€” DIFC and ADGM have their own employment regulations, which differ from UAE mainland labour law used in this calculator.

โš ๏ธ This calculator gives an estimate for general information only and is not legal, tax or financial advice. Rules can change โ€” confirm important figures with the relevant UAE authority or a licensed professional. See our full disclaimer.