UAE Gratuity Calculator
This UAE gratuity calculator helps you estimate your end of service benefits clearly and consistently, using rules aligned with the current UAE labour law framework.
Calculate your gratuity in seconds
AED 0.00
How Do You Use This UAE Gratuity Calculator?
- Select your contract type
- Select resignation or termination
- Enter your basic salary
- Enter unpaid absence days
- Press calculate to see your gratuity instantly
You do not need formulas or legal knowledge. The calculator applies a standard method based on commonly referenced gratuity rules under UAE labour regulations, including the 21-days/30-days approach and the maximum cap.
Disclaimer
We built this calculator to reflect commonly applied gratuity calculations under the current UAE labour law framework (including the cap concept and basic-salary basis). However, final entitlement can vary based on your contract wording, internal HR policies, specific legal circumstances, and official interpretation. For authoritative confirmation, check official information on the UAE Government Portal or consult a licensed UAE legal professional.
Crucial Factors for Gratuity Calculation in UAE
UAE end-of-service gratuity is typically calculated using the employee’s last basic salary (not total compensation). In practice, eligibility generally starts after completing at least one year of continuous service. You can verify official summaries and updates via the UAE labour laws and regulations.
Eligibility Criteria
- Minimum one year continuous service (common eligibility threshold)
- Unpaid absence days are excluded from service duration in this calculator
- Contract type can affect entitlement depending on terms and circumstances
- Termination or resignation can affect the payable amount
Limited Contract
A common approach is: for the first five years, gratuity is calculated at 21 days of basic salary per year; after five years it becomes 30 days per year. Total gratuity is commonly capped at two years of basic salary.
Unlimited Contract
For resignations, some calculation scenarios apply a reduced factor depending on years of service (for example, partial entitlement under certain thresholds). Because resignation rules and exceptions can depend on the contract and circumstances, always confirm with your employer or HR department.
UAE Gratuity Calculation Formula
Daily salary = Basic salary ÷ 30
First five years = Daily salary × 21 × years
After five years = Daily salary × 30 × years
Total gratuity = Sum of both parts, capped at two years of basic salary. (This tool also subtracts unpaid absence days from service duration.)
Common Mistakes
- Using total salary instead of basic salary
- Rounding service duration too aggressively
- Ignoring unpaid absence days
- Ignoring contract type and resignation vs termination
- Assuming everyone gets the same gratuity regardless of circumstances
Frequently Asked Questions
Is gratuity paid if I worked less than one year?
In many cases, gratuity eligibility starts after completing at least one year of continuous service. If you worked less than one year, gratuity may be zero.
Does unpaid leave reduce gratuity?
Unpaid absence can reduce the service duration used in the calculation. This calculator subtracts unpaid absence days from total service days before calculating your estimate.
Do allowances (housing/transport) count in gratuity?
Gratuity calculations are commonly based on the last basic salary, not total salary including allowances. If your contract has special clauses, confirm with HR.
Is gratuity different for resignation and termination?
It can be. Some scenarios apply reduced entitlement for resignation depending on years of service and contractual conditions. Always confirm your specific situation with HR.
How is “daily wage” calculated in this tool?
This calculator uses a common convention: daily wage = basic salary ÷ 30. That’s a widely used approach for gratuity estimates in UAE contexts.
Can my gratuity exceed two years’ salary?
Gratuity is commonly capped at the equivalent of two years of basic salary. This calculator applies that cap automatically.
Why do you ask for contract type if rules can vary?
Contract type and the reason for end of service can affect the calculation in many common scenarios. We include these inputs to provide a more realistic estimate.
Is this calculator legally binding?
No. It is an estimation tool designed to improve clarity and user experience. For official determinations, refer to authoritative sources like u.ae.