Dubai End of Service Gratuity Calculator
Estimate your gratuity under UAE Labour Law (private sector, basic salary basis).
Assumptions: 21 days basic wage per year for first 5 years, 30 days per year after 5 years, pro-rata for partial year, max cap = 2 years of basic salary.
If you are resigning, being terminated, or planning your next role, a reliable end of service calculator Dubai helps you estimate what you might receive before your final settlement. The tool above gives a practical estimate based on common UAE private-sector gratuity rules.
How End of Service Gratuity Works in Dubai
In most Dubai private-sector jobs governed by UAE Labour Law, gratuity is based on your last basic salary (not total package including allowances). Your service period also matters, and partial years are generally calculated on a pro-rata basis once you complete at least one year.
- Less than 1 year of service: usually no gratuity entitlement.
- First 5 years: 21 days of basic wage for each year.
- After 5 years: 30 days of basic wage for each additional year.
- Maximum: total gratuity cannot exceed two years of basic salary.
Formula Used in This End of Service Calculator Dubai
Step 1: Find daily basic wage
Daily basic wage = Monthly basic salary ÷ 30.
Step 2: Calculate service length
Total service days are calculated from start date to end date, then unpaid leave days are deducted to get eligible service days.
Step 3: Apply gratuity day rates
Gratuity days = (Years up to 5 × 21) + (Years above 5 × 30).
Step 4: Apply legal cap
Estimated gratuity = minimum of (gratuity days × daily wage) and (24 × monthly basic salary).
Example Calculation
Suppose your monthly basic salary is AED 8,000 and you worked 6 years and 3 months (with no unpaid leave):
- First 5 years: 5 × 21 = 105 days
- Next 1.25 years: 1.25 × 30 = 37.5 days
- Total gratuity days: 142.5 days
- Daily wage: 8,000 ÷ 30 = AED 266.67
- Estimated gratuity: 142.5 × 266.67 = AED 38,000 (approx.)
Important Notes Before You Rely on Any UAE Gratuity Calculator
- Use basic salary only, not housing/transport allowances.
- Some free zones (such as DIFC/ADGM) may follow different end-of-service frameworks.
- Company policy, contract terms, disciplinary cases, or court judgments can affect final settlement.
- Your final payroll may include additional items like pending salary, unused leave, or deductions.
Frequently Asked Questions
Is this calculator accurate for all Dubai employees?
It is accurate for many UAE Labour Law private-sector scenarios, but it is still an estimate. Specialized jurisdictions or unusual contract terms can differ.
Does resignation change gratuity?
Under current rules, gratuity principles are more unified than older systems, but outcomes can still vary based on your exact employment framework and reason for separation.
Do allowances count in gratuity?
Typically no. Gratuity is generally calculated on basic salary.
Can I use this tool for planning?
Yes. This tool is useful for budgeting and negotiation prep, then you can confirm exact figures with HR or a labor-law professional.
Disclaimer: This page provides an estimate for educational purposes and is not legal advice.