Gratuity Calculator UAE 2026: Fast and Precise Results
Find out what your end-of-service benefits are worth under the current UAE Labor Law using our Gratuity Calculator UAE. Enter your basic salary and your joining and last working dates. The result is instant, and you can download it as a PDF.
21Days of basic pay Years 1–5
30Days of basic pay Year 6 onward
14Days of basic pay Domestic workers
24Months of basic wage Maximum ceiling
14Days to be paid After contract ends
Step-by-step guide
How the Gratuity Calculator UAE Works
To use this online gratuity calculator UAE, you only need your basic salary, your first day of work, and your last day of work to compute your final payout. According to MOHRE, resignation and termination now produce the same gratuity in the UAE, so you don’t need to enter why you left your job.
Follow these four exact steps to get your calculation:
Enter your final basic salary. Look at your most recent payslip or employment contract and input only the basic portion, excluding all allowances.
Select your first day of work. Use the start date listed on your official MOHRE employment contract, not the day you arrived in the country.
Select your last day of work. This should be the final day of your notice period.
Select your contract category. Choose whether you are a standard private sector employee, a domestic worker under Law No. 9 of 2022, or working under a part-time permit.
This online calculator is useful if you’ve worked for more than one year, your termination is legal, and you have a good work record. Whether you’re in Abu Dhabi, Dubai, or anywhere in the UAE, it ensures you understand your end-of-service benefits—hassle-free.
Disclaimer
Our gratuity calculator is a helpful tool, not a legal one. It estimates your gratuity based on UAE labor laws and the details you provide. Factors like compensation during your tenure, employment agreement terms, or incomplete information can affect the results.
The calculator is not liable for errors and should not be used for legal purposes. For legal matters, we recommend consulting a lawyer.
The method
How to Calculate Gratuity in UAE?
Under Article 51 of Federal Decree-Law No. 33 of 2021, the UAE calculates gratuity based on your final basic wage, granting 21 days of pay for each of the first five years of service and 30 days of pay for every year after that. The total payout cannot exceed the equivalent of two years of your basic salary.
The foundation of the entire calculation is your daily wage. To find this, the law dictates that you must divide your monthly basic salary by 30. This fixed denominator applies regardless of how many days are in the current month. Once you have your daily basic wage, you multiply it by the number of days you are entitled to based on your total years of service.
Your gratuity is built on the basic salary line only — not the total gross.
The formulaDaily basic wage = Monthly basic salary ÷ 30
Gratuity = Daily basic wage × Days of pay earned
A critical boundary to understand is the definition of basic salary. Under Article 1 of Federal Decree-Law No. 33 of 2021, your basic salary excludes:
Housing allowances
Transport allowances
Utility stipends
Bonuses
The most common error employees make is calculating gratuity using their gross salary. If your total salary is AED 15,000, but AED 5,000 is for housing and transport, your gratuity is calculated strictly on the AED 10,000 basic portion.
The accumulation of gratuity days splits at the five year mark:
21 daysYears 1 through 5: You earn 21 days of basic pay per year.
30 daysYear 6 onward: From day one of your sixth year, your entitlement increases to 30 days of basic pay per year.
24 monthsMaximum ceiling: Under Article 51 of the Labor Law, no matter how many decades you work for a single employer, your final gratuity payment can never exceed the total value of 24 months of your final basic wage.
Furthermore, partial years are pro-rated, not rounded up. Some outdated competitor calculators still round six months up to a full year, which was a convention under much older legal frameworks. The current MOHRE system calculates your service accurately to the day.
Five scenarios
Worked examples of Calculating Gratuity in the UAE
Here are a few examples of how to use the gratuity formula under Federal Decree-Law No. 33 of 2021. The table below outlines five common employment scenarios, followed by the exact arithmetic used to reach the final payout
Estimated gratuity across five common UAE employment scenarios
Situation
Basic salary
Service
Estimated gratuity
Private sector, resigned
AED 10,000
2 years
AED 14,000
Private sector, contract ended
AED 10,000
5 years
AED 35,000
Private sector, long service
AED 10,000
8 years
AED 65,000
Domestic worker
AED 2,500
3 years
AED 3,500
Part-time permit (half a full-time week)
AED 6,000
4 years
AED 8,400
Domestic worker: under Federal Decree-Law No. 9 of 2022, domestic workers earn 14 days of pay for each year of service after the first year. At AED 2,500 a month over three years, that comes to roughly AED 3,500.
Part-time: for MOHRE part-time permit holders, gratuity is scaled to your contracted hours. Someone working half the hours of a full-time colleague, on an equivalent basic of AED 6,000 over four years, would receive about AED 8,400, which is half the full-time figure.
Gratuity applies to expatriate employees who complete one full year of continuous service.
Eligibility
Who is eligible for Gratuity in the UAE
Under Article 51 of Federal Decree-Law No. 33 of 2021, you are eligible for UAE gratuity if you are an expatriate employee who has completed at least one full year of continuous service with your employer
The rules restrict gratuity purely to expatriate workers. UAE and GCC nationals do not receive end of service lump sums because they are mandated to be enrolled in the General Pension and Social Security Authority (GPSSA) scheme. Employers contribute to this national pension fund monthly on behalf of their GCC citizen employees, replacing the need for a separate gratuity payout upon termination.
Continuous service requires you to remain employed for 365 consecutive days. When calculating this continuous period:
Approved leave counts: Time spent on approved annual leave, sick leave, and maternity leave fully counts toward your total service duration.
Unpaid leave is deducted: Any days taken as unpaid leave without pay are legally deducted from your total length of service.
For example, if you work for exactly one year but took 15 days of unpaid leave, your total service time is technically 350 days, and you will not qualify for gratuity until you work an additional 15 days.
Article 44 of the Labor Law lists severe grounds for dismissal without notice, including:
Forging documents
Revealing corporate secrets
Assaulting a colleague
Even so, a dismissal under Article 44 doesn’t automatically remove your gratuity under the current law. It stays payable unless your employer takes you to court and a judge specifically rules to withhold it — which only happens in the most serious proven cases.
It is also vital to understand the major legal changes introduced when the new Labor Law came into effect in 2022. Resignation no longer reduces your gratuity payout, and the confusing distinction between limited and unlimited contracts has been abolished. All private sector employees are now on fixed-term contracts, and payouts are identical whether you are terminated or choose to resign.
Payment window
When and how you are paid
Your employer must pay your complete gratuity and end of service benefits within 14 days of your contract termination date. This strict 14 day payment window is mandated by Article 53 of the Labor Law.
The final payment must include your gratuity, any accrued but untaken annual leave, and any pending monthly salary. Employers are legally permitted to deduct proven debts you owe them from this final amount. Acceptable deductions include recovering advances on your salary, unpaid loans provided directly by the company, or the cost of repairing company equipment you intentionally damaged. Employers cannot deduct arbitrary “visa cancellation fees” or training costs, as UAE law explicitly requires the company to bear the costs of recruitment and sponsorship.
If your employer fails to pay your full entitlement within 14 days, your immediate next step is to raise a formal complaint. Do not wait for months hoping the company will find the cash. You must raise a grievance directly with MOHRE. You can initiate this process through the MOHRE website, their smart application, or by calling their toll-free number.
Free zones
How does Gratuity work for Free zones and Special Cases
Most UAE free zones apply the exact same federal gratuity formula as the mainland. DIFC is the main exception, with a mandatory workplace savings scheme instead of a lump-sum payout. ADGM offers a similar scheme, but it’s optional as most ADGM employers still pay traditional gratuity on close to the same formula
Standard free zones such as JAFZA and DMCC follow the same federal formula as the mainland.
JAFZA · DMCC · DDA
If you work in standard free zones like JAFZA, DMCC, or DDA, your gratuity calculation mirrors the mainland rules exactly. Your calculation will still be 21 days for the first five years and 30 days thereafter.
If you work in the Dubai International Financial Centre (DIFC), this Gratuity Calculator UAE does not apply to you. DIFC has replaced the traditional gratuity system with a mandatory funded scheme called DIFC Employee Workplace Savings (DEWS). Instead of a lump sum at the end of your employment, your employer pays a mandatory monthly percentage of your basic salary into an investment fund. When you leave the company, you receive the accumulated value of that fund, which may have grown or shrunk based on market performance.
ADGM
The Abu Dhabi Global Market (ADGM) offers a similar savings scheme, but enrolment is optional for employers. Unless your employer has specifically opted in, your ADGM contract most likely still pays a traditional lump-sum gratuity on roughly the same 21-and-30-day formula used on the mainland so this calculator is a reasonable guide for most ADGM jobs. Check your contract or ask HR which one applies to you.
ILOE
You should also note that the Involuntary Loss of Employment (ILOE) insurance scheme is entirely separate from gratuity. Your monthly ILOE premiums protect your income temporarily if you lose your job, but filing an ILOE claim does not reduce or replace your employer’s legal obligation to pay your full gratuity.
Since November 2023
Gratuity vs. the New Alternative Savings Scheme
Since November 2023, private sector employers can opt into an alternative end of service savings scheme instead of paying the traditional gratuity lump sum. If your employer enrolls you in this system, your final payout comes from a regulated investment fund rather than the standard 21 and 30 day calculation.
This voluntary alternative was established under Cabinet Resolution No. 96 of 2023. It is designed purely for expatriate employees. It must not be confused with the mandatory pension scheme for UAE nationals, which operates separately under Federal Decree-Law No. 57 of 2023.
When an employer opts into the alternative scheme, they replace the traditional end of service accrual with mandatory monthly contributions. The contributions are calculated based strictly on your basic salary and your total length of service:
5.83%Under 5 years of service: The employer pays 5.83 percent of your monthly basic salary into the fund.
8.33%Over 5 years of service: The employer contribution increases to 8.33 percent of your monthly basic salary.
When you resign or face termination, you draw your final settlement directly from this investment fund, which includes your principal balance and any accrued investment returns.
Ask your HR department or check your contract to confirm whether you’re on the standard gratuity system or enrolled in this alternative scheme; it changes which number is actually correct for you.
Before you confront HR
Common mistakes when calculating gratuity
The most common gratuity calculation error people in the UAE make is using gross salary instead of basic salary, which artificially inflates expectations and leads to unnecessary disputes.
Check this list of common pitfalls before confronting your HR department about your final settlement:
Using Gross SalaryEnsure you are stripping away housing, transport, phone, and utility allowances. Gratuity is built exclusively on the basic wage line item in your contract.
Skipping Partial YearsDo not round your service down to the nearest full year. If you worked four years and nine months, you are legally owed money for those final nine months.
Applying Old PenaltiesDo not reduce your calculation if you resigned. Before 2022, resigning early resulted in massive deductions to your gratuity. The current law grants full calculation rights regardless of who ended the contract.
Forgetting the CapDo not project payouts larger than 24 months of your basic wage. If you have been with a company for 35 years, your mathematical accrual might exceed the two-year cap, but the law strictly limits the final payment to the two-year ceiling.
Including Unpaid LeaveRemember to subtract any days you took as unpaid leave from your total service duration.
From hire to visa cancellation
How to Protect Your Gratuity
You protect your gratuity by securing a signed contract that clearly separates basic pay from allowances, and by keeping meticulous personal records of your employment history.
Do not rely entirely on your employer to track your documentation. Take these proactive steps from the day you are hired until the day your visa is canceled:
Keep your paperwork. Save copies of your original offer letter, your signed MOHRE contract, and every monthly payslip. If a dispute arises, MOHRE will rely on these official documents to establish your basic salary.
Verify your MOHRE dates. Ensure the start date on your official labor contract matches your actual first day of work. If your employer delayed typing your contract, your official service duration might appear shorter than reality.
Request an end of service statement. Before signing any cancellation documents, demand an itemized settlement breakdown from your HR department. This document should clearly list your basic salary, your exact days of service, and the final math.
Do not sign cancellation papers prematurely. Employers sometimes ask staff to sign a document stating they have received all dues before the money actually clears the bank. Never sign a confirmation of receipt until the funds are visible in your account.
Escalate early. If your payment is delayed beyond the 14 day legal window, file a MOHRE complaint immediately. The longer you wait, the harder it becomes to recover your funds, especially if the company is facing insolvency.
Keep your offer letter, MOHRE contract and every payslip — these establish your basic salary in a dispute.
17 questions
Frequently asked questions
How is gratuity calculated in the UAE?
Gratuity is calculated using your final basic salary, awarding 21 days of pay for each of your first five years of service. For any years beyond five, you receive 30 days of basic pay per year. The total amount is capped at two years of your basic wage.
Is gratuity calculated on basic salary or gross salary?
Gratuity is calculated strictly on your basic salary. Your gross salary includes additional allowances for housing, transport, or utilities, which must be subtracted before applying the calculation. You must ensure your employment contract clearly defines the exact basic salary figure.
How much gratuity after 1 year?
After exactly one year of continuous service, you are entitled to 21 days of your basic salary. You determine this by dividing your monthly basic salary by 30 to get a daily rate, then multiplying that daily rate by 21.
How much gratuity after 3 years?
After exactly three years of service, you receive 63 days of basic salary. This is calculated by taking your yearly entitlement of 21 days of basic pay and multiplying it by three.
How much gratuity after 5 years?
After exactly five years of service, you receive 105 days of basic salary. You remain in the first calculation tier, meaning you earn 21 days of basic pay for each of those five years.
Do I get gratuity if I resign?
Yes, you receive your full gratuity if you resign, provided you have completed at least one year of continuous service. Under the 2022 Labor Law updates, resigning no longer triggers any deductions or penalties to your final end-of-service payout.
Do I get gratuity if I am terminated?
Yes, you receive your full gratuity if your employer terminates your contract, as long as you have worked for at least one year. That includes dismissal without notice under Article 44; it no longer automatically removes your gratuity under current law. An employer who wants to withhold it for misconduct has to get a court ruling first
What is the maximum gratuity in the UAE?
The maximum legal gratuity payout in the UAE cannot exceed the equivalent of two years of your final basic salary. Once your accumulated days of service push your payout calculation past the 24 month threshold, the accrual stops.
Is gratuity taxable in the UAE?
No, gratuity payouts are not subject to any income tax in the UAE. The amount calculated by your employer is the exact net amount that must be deposited into your bank account. However, you should consult a tax professional regarding tax liabilities in your home country.
How long does the employer have to pay gratuity?
Your employer is legally required to pay your complete gratuity and final settlement within 14 days of your contract end date. If they fail to meet this deadline, you have the right to file an immediate complaint with MOHRE.
Can an employer refuse to pay gratuity?
Not on their own decision. They can withhold it if you haven’t completed one year of service, or if a court authorises forfeiture in a serious misconduct case under Article 44. In all other circumstances, withholding gratuity is a violation of UAE law, and you can file a complaint with MOHRE.
Does unpaid leave count toward gratuity?
No, unpaid leave is legally deducted from your total length of service. If you worked for two years but took 30 days of unpaid leave, your gratuity will be calculated based on one year and 11 months of service.
Are limited and unlimited contracts still a thing?
No, the legal distinction between limited and unlimited contracts was abolished by Federal Decree-Law No. 33 of 2021. All private sector employees in the UAE are now issued fixed-term contracts, and the gratuity calculations are identical for everyone.
How is domestic worker gratuity different?
Domestic workers are governed by Law No. 9 of 2022, which grants them 14 days of basic pay for each year of service. This is distinct from private sector commercial employees, who receive 21 days of basic pay per year.
Do free zone (JAFZA / DMCC) employees get gratuity?
Yes, employees in standard free zones like JAFZA and DMCC receive the exact same gratuity benefits as mainland employees. These free zones mandate that employers follow the standard federal formula of 21 days and 30 days of basic pay.
What about DIFC and ADGM?
DIFC replaced lump-sum gratuity with a mandatory funded plan called DEWS, so this calculator doesn’t apply there. ADGM has a similar scheme, but it’s optional — many ADGM employers still pay a traditional gratuity on roughly the same 21-and-30-day formula. Check which one your ADGM contract uses.
What if my employer uses the new savings scheme?
Then this calculator won’t match your payout. Since November 2023, mainland employers can opt into a savings scheme under Cabinet Resolution No. 96 of 2023, contributing 5.83% of your basic salary a month (8.33% after five years) to a regulated fund instead of accruing gratuity. If you’re enrolled, your end-of-service money comes from that fund, not the 21-and-30-day formula. Check your contract or ask HR which applies.
Can I calculate gratuity for a part-time contract?
Yes, part-time employees are entitled to pro-rated gratuity. The payout is calculated by taking your contracted weekly hours, dividing them by a standard 48 hour week, and applying that fractional multiplier to the standard 21 day gratuity formula.
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