If you are working in the UAE private sector, this MOHRE gratuity calculator helps you estimate your end-of-service benefit based on your last basic salary and your service period. It is designed for quick planning and gives a clear breakdown so you can understand how your gratuity is built.
UAE End-of-Service Gratuity Calculator
How MOHRE gratuity is generally calculated
For most private-sector employees in the UAE, gratuity is tied to years of service and basic wage. A common formula used for estimation is:
- First 5 years: 21 days of basic wage per year
- After 5 years: 30 days of basic wage per year
- Daily wage: basic monthly salary ÷ 30
- General cap: total gratuity not more than 2 years of basic salary
This page applies the above method to provide a practical estimate. Actual settlements can vary based on contract type, legal updates, disciplinary issues, court rulings, or employer records.
Step-by-step breakdown used in this calculator
1) Find qualifying service period
The calculator computes total service days between start and end date, then subtracts unpaid leave days (if any). If total qualifying service is less than one year, gratuity is shown as zero.
2) Convert service into years
Service days are divided by 365 to get proportional years. This allows part-year service to be included in the estimate.
3) Split service into two bands
- Up to 5 years at 21 days per year
- Above 5 years at 30 days per year
4) Apply wage and cap
The gratuity amount is calculated from your daily wage, then capped at 24 months of basic salary where applicable.
Example calculation
Suppose your last basic salary is AED 9,000 and your net service is 6.5 years:
- Daily wage = 9,000 ÷ 30 = AED 300
- First 5 years = 5 × 21 × 300 = AED 31,500
- Next 1.5 years = 1.5 × 30 × 300 = AED 13,500
- Estimated gratuity = AED 45,000
Common mistakes to avoid
- Using total salary instead of basic salary
- Ignoring unpaid leave that may affect eligible service days
- Assuming resignation and termination always have identical outcomes in every case
- Forgetting that company policy cannot override mandatory legal entitlements
Frequently asked questions
Does this calculator use gross salary?
No. It uses basic salary only, which is the standard base for gratuity estimation.
Can I use this as a legal document?
No. This is an estimate tool for planning. Use MOHRE channels, your employment contract, and professional legal guidance for final determinations.
Can gratuity be calculated for part of a year?
Yes. This calculator prorates based on actual qualifying service days.
Final note
A gratuity estimate is useful for financial planning, job transitions, and settlement discussions. Keep your salary records and employment dates accurate for the best result, and verify final numbers with official sources when needed.