🏢 UAE Gratuity Calculator – Know Your End of Service Benefits

Introduction

If you’re working in the United Arab Emirates (UAE), you are entitled to an End of Service Gratuity once your employment ends, provided you have completed at least one full year of service. This gratuity is a legal right under UAE Labour Law, designed to reward employees for their loyalty and service.

Our UAE Gratuity Calculator helps you easily estimate your end-of-service benefits based on your basic salary, start and end dates, and contract type — whether limited or unlimited.

🧮 What Is a Gratuity in UAE?

A gratuity (or “End of Service Benefit”) is a lump sum paid to an employee when they resign or their contract ends. It’s calculated based on the basic monthly salary — not including allowances, bonuses, or commissions.

Under UAE law, employees become eligible for gratuity after completing one year of continuous service.

📅 How the Gratuity Is Calculated

The standard gratuity calculation under Federal Decree-Law No. 33 of 2021 is as follows:

1. Less than 1 year of service:
   ❌ No gratuity entitlement.

2. 1 to 5 years of service:
   ✅ 21 days’ basic salary for each year of service.

3. More than 5 years of service:
   ✅ 21 days’ basic salary for the first 5 years, plus 30 days’ basic salary for each additional year.

🧠 Note: The daily wage is calculated as your basic monthly salary divided by 30.

🧾 Example Calculation

Let’s say your basic monthly salary is AED 5,000, and you worked for 6 years.

• First 5 years: 21 days × 5 = 105 days of salary

• 6th year: 30 days × 1 = 30 days of salary

• Total: 135 days = 135 ÷ 30 = 4.5 months of salary

• Gratuity = 4.5 × 5,000 = AED 22,500

✅ Total Gratuity: AED 22,500

⚖️ Gratuity Cap and Deductions

In practice, the maximum gratuity is often capped at two years’ basic salary, depending on company policies and interpretations of UAE labour law.

Also, any unpaid leave or notice period deductions may reduce the final gratuity amount.

🧭 Special Case: Resignation Before 5 Years

If an employee resigns before completing 5 years, older rules sometimes apply:

• 1–3 years of service → 1/3 of entitlement

• 3–5 years of service → 2/3 of entitlement
  This reduction is only relevant for contracts governed by older labour laws or specific employment terms.

💡 How to Use the Calculator

1. Enter your start and end dates.

2. Type your basic monthly salary (AED).

3. Select your contract type (limited or unlimited).

4. (Optional) Tick the “Resignation rule” box if applicable.

5. Press Calculate — your gratuity will appear instantly with full details.

🇦🇪 Why This Calculator Matters

Understanding your gratuity helps you plan your financial future, evaluate job offers, and protect your rights as an employee. Whether you’re leaving your job, switching employers, or simply curious about your entitlements, this tool gives you clarity and transparency — instantly.

📘 Disclaimer

This calculator is for general informational purposes only. Actual gratuity amounts may vary depending on your employment contract, company policy, and final settlement terms. For official advice, please refer to the UAE Ministry of Human Resources and Emiratisation (MOHRE) or a certified legal advisor.