Dubai Gratuity Calculator (End of Service)
Estimate your UAE end-of-service gratuity using your basic salary, employment dates, and calculation method.
How the gratuity calculator Dubai tool works
If you work in Dubai (or anywhere in the UAE), your end-of-service benefit is commonly called gratuity. This calculator gives you a quick estimate based on common legal rules: 21 days of basic wage per year for the first five years, then 30 days per year after that, with a maximum cap of two years of basic salary.
The most important input is your basic salary, not your total package. Housing, transport, and other allowances are usually excluded from gratuity calculations unless your contract says otherwise.
Dubai gratuity rules at a glance
- You generally need at least one year of continuous service to qualify.
- For the first 5 years: 21 days of basic wage per completed year.
- After 5 years: 30 days of basic wage per additional year.
- Total gratuity is typically capped at 2 years of basic salary.
- Unpaid leave days may be excluded from the service period.
Why we include two calculation models
UAE labor rules evolved over time. Most people should use the Current UAE law (2022+) option. The Legacy model is included only for rough historical comparisons, especially where resignation factors were reduced under older interpretations for unlimited contracts.
Formula used in this calculator
The calculator uses this practical sequence:
- Daily basic wage = monthly basic salary ÷ 30
- Eligible service days = total days between start and end dates - unpaid leave days
- If service is less than 1 year, gratuity estimate = 0
- Gratuity days = (21 × first 5 years) + (30 × years after 5)
- Estimated gratuity = gratuity days × daily basic wage
- Apply maximum cap = 24 months of basic salary
Example calculation
Suppose your basic salary is AED 8,000 and your eligible service is 6 years:
- First 5 years: 5 × 21 = 105 days
- Sixth year: 1 × 30 = 30 days
- Total gratuity days = 135 days
- Daily basic wage = 8,000 ÷ 30 = AED 266.67
- Estimated gratuity = 135 × 266.67 = AED 36,000.45 (before any contract-specific adjustments)
Common mistakes people make
1) Using gross salary instead of basic salary
This is the most frequent error. Gratuity is typically based on basic wage, so using gross pay can overstate your estimate.
2) Ignoring service breaks or unpaid leave
If your contract or payroll records include excluded days, your gratuity can be lower than expected.
3) Assuming all resignations are treated the same historically
Older frameworks sometimes reduced resignation entitlement. If your employment period spans older legal eras, seek HR/legal clarification.
Tips before you leave a job in Dubai
- Request a final settlement statement from your employer.
- Check basic salary amount used in the final payroll.
- Confirm visa cancellation date and last working day records.
- Review deductions, pending leave salary, and notice pay.
- Keep copies of offer letter, contract, and salary slips.
Final note
This gratuity calculator Dubai page is designed for quick planning and financial awareness. It is not legal advice. For disputes or precise entitlement, consult your HR team, MOHRE resources, or a qualified UAE labor lawyer.