UAE End of Service Gratuity Calculator
Estimate your end of service gratuity in AED based on UAE private-sector rules (basic salary only).
Note: This estimate is for guidance only. Actual settlement may vary due to contract terms, unpaid leave treatment, legal updates, and employer payroll practice.
How gratuity works in the UAE
End of service gratuity is a statutory benefit generally paid to eligible private-sector employees at the end of their employment in the UAE. In most cases, the amount is calculated using your basic salary (not total salary with allowances), along with your length of service.
Under commonly applied rules, the calculation is:
- 21 days of basic wage for each year of the first 5 years of service
- 30 days of basic wage for each additional year after 5 years
- Total gratuity is typically capped at the wage of 2 years (24 months)
Formula used in this calculator
Step-by-step logic
- Daily basic wage = Monthly basic salary ÷ 30
- Total service in years = Years + (Months ÷ 12) + (Days ÷ 365)
- If service is less than 1 year, gratuity is estimated as 0
- Gratuity days = (First 5 years × 21) + (Years after 5 × 30)
- Estimated gratuity = Gratuity days × Daily basic wage
- Apply cap = minimum(Estimated gratuity, 24 × monthly basic salary)
Important notes before relying on any estimate
1) Basic salary vs gross salary
Gratuity is generally based on the basic salary, not your total package. Housing, transport, and other allowances are usually not included. If you are unsure, check your labor contract and salary certificate.
2) Service duration matters a lot
A small change in your final service date can affect your payout. Keep copies of your offer letter, contract amendments, and final payroll records so your service period and final basic wage are clear.
3) Legal updates can change outcomes
UAE labor regulations evolve. While this calculator follows widely used gratuity logic, some situations may involve special handling (for example certain free-zone policies, pension-covered nationals, or contractual arrangements).
Example calculation
Suppose an employee has:
- Basic salary: AED 8,000
- Service length: 7 years, 6 months
Daily wage = 8,000 ÷ 30 = AED 266.67
First 5 years gratuity days = 5 × 21 = 105 days
Remaining 2.5 years gratuity days = 2.5 × 30 = 75 days
Total gratuity days = 180 days
Estimated gratuity = 180 × 266.67 = AED 48,000.60 (approx)
Cap check: 24 months of basic salary = 24 × 8,000 = AED 192,000. Since AED 48,000.60 is below the cap, payable gratuity remains AED 48,000.60.
Who can use this gratuity calculator UAE page?
- Employees planning resignation and financial transition
- Professionals reviewing job offers and total benefits
- HR teams preparing rough gratuity forecasts
- Anyone comparing gratuity across salary scenarios
Frequently asked questions
Is gratuity calculated on gross salary?
No. It is usually calculated on basic salary only.
Do I get gratuity if I worked less than one year?
In many common cases, no gratuity is payable for service under one year. Always verify your exact legal context.
Is this calculator an official government tool?
No. It is an educational estimator to help you understand likely gratuity amounts.
Can employer policy override labor law?
Employers can offer better benefits, but they generally cannot provide less than minimum legal entitlements where the law applies. If there is a dispute, refer to official labor channels or qualified legal advice.
Final takeaway
A gratuity calculator is a smart first step for financial planning in the UAE. Use your latest basic salary, check your exact service period, and keep expectations realistic by applying the statutory cap. For final settlement decisions, confirm with HR, review your contract, and consult official legal guidance when needed.