UAE Gratuity Calculator
Estimate your end of service benefits in the UAE using your basic monthly salary, service period, and legal framework. This is an estimate for guidance only.
How the UAE end of service gratuity is calculated
In UAE private sector employment, end of service gratuity is generally based on your basic salary and the length of continuous service. For most employees under the current framework, the formula is:
- 21 days of basic wage for each of the first 5 years of service
- 30 days of basic wage for each additional year after 5 years
- Total gratuity is usually capped at the equivalent of 2 years of basic wage
This calculator converts your monthly basic salary to a daily rate (basic salary ÷ 30), then applies the gratuity days based on eligible service years.
What inputs matter most
1) Basic salary (not gross salary)
One of the most common mistakes is using total monthly pay including housing, transport, and other allowances. In most cases, gratuity is calculated on basic salary only.
2) Start and end dates
Accurate employment dates are critical. Even a small date error can change service length and final gratuity. The tool also allows you to subtract unpaid leave days from eligible service days.
3) Legal framework
The calculator includes:
- Current UAE private sector law (2022+) for standard use
- Legacy pre-2022 mode for older unlimited contract reference calculations where resignation factors may apply
Example gratuity calculation (quick walkthrough)
Let’s say your basic salary is AED 10,000, and your eligible service is 6 years.
- Daily basic wage = 10,000 ÷ 30 = AED 333.33
- First 5 years gratuity days = 5 × 21 = 105 days
- Year 6 gratuity days = 1 × 30 = 30 days
- Total gratuity days = 135
- Estimated gratuity = 135 × 333.33 = AED 45,000 (approx.)
The calculator automates this and also applies the legal cap where relevant.
Important notes before relying on any gratuity estimate
- Your final settlement may include or exclude items beyond gratuity (unused leave, deductions, notice pay, loans, etc.).
- Special contracts, free zone rules, and court decisions can affect outcomes.
- Government updates may change practical interpretation.
- Always compare with your contract and official employer HR statement.
Frequently asked questions
Is gratuity in the UAE based on total salary?
No. In most private sector cases, gratuity is based on the basic salary, not total package.
Do I get gratuity if I worked less than one year?
Under the standard private sector framework, gratuity typically requires at least one year of continuous service.
Is this calculator legally binding?
No. This is an educational estimate tool. For legal or final payroll decisions, consult your HR team, MOHRE guidance, or a qualified labor lawyer.
Final takeaway
A good UAE gratuity calculator helps you plan transitions, negotiate confidently, and avoid surprises at exit. Use this tool with accurate basic salary and dates, then cross-check your final number with official records.