UAE Gratuity Calculator
(Updated for 2025)
Calculate your UAE end-of-service benefits in accordance with Federal Decree Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, as regulated by the Ministry of Human Resources and Emiratisation (MOHRE). This calculator provides accurate gratuity estimates for private sector employees based on official UAE Labor Law provisions.
End of Service Calculator
UAE gratuity calculator based on official Labor Law provisions and MOHRE regulations for accurate end-of-service benefit calculations.
Why Use Our Gratuity Calculator
Accuracy & Compliance
Our calculator follows Federal Decree Law No. 33 of 2021 and MOHRE regulations exactly. Built with official UAE Labor Law provisions, it ensures 100% accurate gratuity calculations for both limited and unlimited contracts. No guesswork – just precise, legally-compliant results you can trust.
Easy & Instant
Calculate your end-of-service benefits in seconds with our user-friendly interface. Just enter your basic salary, employment dates, and contract type. Our smart calculator instantly computes your gratuity, including detailed breakdowns and formulas, making complex labor law calculations effortless.
Trusted by Thousands
Used by employees and employers across the UAE, our calculator is built by experts who understand UAE employment law inside and out. Get confidence in your calculations with our proven, reliable tool that’s helped thousands secure their rightful benefits.
How Does the UAE Gratuity Calculator Work?
Calculating gratuity pay by hand can be tricky and might lead to mistakes. An online gratuity calculator is a free tool for easy UAE gratuity calculation. It gives an estimate by asking for your details like your salary, service years, contract type (limited or unlimited contract), and how you left your job. This tool makes UAE gratuity calculation simple with a few clicks.
How can I calculate my end of service gratuity in the UAE?
Article 51 of the UAE Labour Law states that gratuity is a benefit for expatriate employees in the private sector. To get an estimate with the online calculator, you need to know some details about yourself. This includes your basic salary, the length of your service, and your contract type.
Complete Minimum Service Period
You must work for at least one year to get gratuity pay. If you don’t meet this requirement, you won’t get the payment in the private or public sector.
Know Your Basic Salary
Your basic salary is the base for calculating gratuity. Make sure to enter your exact salary to get an accurate gratuity estimate.
Enter the Contract Type
Choose whether you had a limited or unlimited contract. This depends on the type of contract you had with your employer.
Select the Way by Which You Left Your Job
Choose how you left your job. This affects how your gratuity is calculated. It’s important to be accurate here.
Add the Start and End Date of Your Service
Enter the start and end dates of your job to get a precise gratuity estimate.
Gratuity Calculation Formula for Limited Contract
In limited contracts, you agree to work for a set number of years. If you don’t complete this, you might lose your rights, including gratuity.
Service Years: 1 to 5 years Gratuity = (Basic salary x 21 days x service years)/30
Service Years: More than 5 years Gratuity = (Basic salary x 30 days x service years)/30
Gratuity Calculation Formula for Unlimited Contracts
With an unlimited contract, you don’t agree to a specific number of years. You can leave with one to three months’ notice. You’re entitled to gratuity if you resign or get terminated.
Resignation
Here are the rules for end-of-service benefits for those who resign from unlimited contracts:
- Resigning before 1 year means no gratuity from the employer or hiring company.
- Resigning after 1-3 years means 1/3 of 21 days basic salary for each year as gratuity.
- Resigning after 3-5 years means 2/3 of 21 days basic salary for each year as gratuity.
- Resigning after 5 years means 21 days of basic salary for the first 5 years and 30 days for each year after.
Termination
Here are the new rules for termination:
- Terminated before 1 year, no gratuity entitlements.
- Terminated after 1 but less than 5 years, 21 days of basic pay for each year as gratuity.
- Terminated after 5 years, 21 days of basic pay for the first 5 years and 30 days for each year after.
Understanding UAE Labor Law Requirements
The Ministry of Human Resources and Emiratisation (MOHRE) oversees all end-of-service benefit calculations in the UAE. Federal Decree Law No. 33 of 2021 replaced the previous labor law and introduced clearer guidelines for gratuity calculations.
Two-Year Salary Cap
Under UAE law, the maximum gratuity payment cannot exceed two years’ worth of your basic salary. This cap applies to all employees regardless of their years of service.
Payment Timeline
Employers must pay end-of-service gratuity within 14 days of your contract termination. This is mandatory under the new labor law provisions.
Basic Salary Definition
Gratuity calculations are based solely on your basic salary and do not include allowances such as housing, transportation, or other benefits. Ensure your employment contract clearly defines your basic salary component.
Alternative End-of-Service Benefits Scheme
In 2023, the UAE introduced Cabinet Resolution No. 96 of 2023, which allows employers to participate in a voluntary savings scheme as an alternative to traditional lump-sum gratuity payments.
How the Savings Scheme Works
- Employers contribute monthly to authorized investment funds
- Contributions are 5.83% of basic salary for employees with less than 5 years of service
- Contributions increase to 8.33% for employees with more than 5 years of service
- The scheme provides better financial security and potential investment growth
Benefits for Employees
- Protection against employer bankruptcy
- Potential investment returns on contributions
- Guaranteed payment even if the company faces financial difficulties
- Supervised by MOHRE and Securities and Commodities Authority (SCA)
Can Gratuity be Denied?
Article 139 of the UAE Labour Law explains when an employee might not get gratuity. Here are the reasons:
- Resigning without proper notice, except for certain reasons, means no gratuity. This includes unlimited contracts and limited contracts before five years.
- Terminated for certain reasons or resigning to avoid dismissal might also mean no gratuity.
- Serious misconduct leading to dismissal may result in forfeiture of gratuity rights.
Secure Your Gratuity Benefits
To get your gratuity, make sure you meet the UAE Labour Law’s requirements. This includes at least one year of continuous service. Keep good records of your employment, like contracts and salary statements.
When you leave or are let go, ask your employer for your gratuity. If there’s a dispute, get help from authorities or a lawyer to get your benefits.
Steps to Claim Your Gratuity:
Familiarize Yourself with Your Employment Contract
Read your contract well before starting work in the UAE. Each job and contract has its own rules for end-of-service benefits.
Know Your Legal Rights in the Emirates
Learn about the UAE Labour Law and its rules on gratuity. This will help you understand when you’re eligible and when you’re not.
Keep Your Employment Record
Keep track of your employment history. This includes start and end dates, salary details, and contract terms. It will help you claim your gratuity when needed.
Discuss Concerns with Your Employer
Talk openly with your employer about gratuity concerns or questions. This ensures you both understand each other throughout your job.
Seek Legal Assistance
If you have disputes or questions about gratuity, get help from a labour law expert. This will protect your rights and help you get your benefits in the UAE.
Frequently Asked Questions
Who qualifies for end-of-service gratuity under UAE Labour Law?
Employees in the UAE’s private sector who complete at least one year of continuous service are entitled to end-of-service gratuity. The benefit applies when employment ends for any reason other than dismissal for gross misconduct, as defined under Article 44 of the UAE Labour Law (Federal Decree-Law No. 33 of 2021).
How is gratuity calculated for UAE employees?
Gratuity is based on an employee’s last basic salary, excluding allowances or bonuses. Workers on unlimited or fixed-term contracts receive 21 days’ basic pay per year for the first 5 years, and 30 days’ pay per year thereafter, up to a maximum of two years’ total salary.
Is gratuity paid for partial years of employment?
Yes. If an employee has completed more than one year, gratuity is calculated proportionally for the number of months or days worked beyond full years. For example, 1 year and 6 months of service would earn 1.5 times the yearly gratuity rate, based on the last basic salary.
Are part-time or temporary employees eligible for gratuity?
Part-time, temporary, or flexible-schedule employees are eligible if they complete one continuous year of service. Gratuity is calculated in proportion to actual working hours or days, following the guidelines issued by the Ministry of Human Resources and Emiratization (MOHRE).
What should I do if my employer refuses to pay gratuity?
Employees can file a formal complaint with the MOHRE through its app, website, or call centre. The ministry will mediate and, if unresolved, refer the case to the Labour Court. Employers must pay all end-of-service benefits within 14 days of contract termination.
Are free-zone employees entitled to gratuity in the UAE?
Most UAE free zones follow the federal labour law for gratuity payments, but some – such as DIFC and ADGM – operate under their own employment regulations. Employees should review their free zone’s specific rules or employment contract to confirm eligibility and calculation methods.
Can an employer deduct money from gratuity payments?
Employers may deduct legally owed amounts such as outstanding loans, salary advances, or fines approved by MOHRE. However, deductions must be justified and documented. Unauthorised or excessive deductions violate UAE labour regulations and can be challenged through official complaint channels.
How is gratuity affected if an employee resigns?
Employees who resign after at least one year of service are still entitled to gratuity, calculated on their final basic salary. The calculation follows the same formula as termination cases. However, leaving before one year of continuous service forfeits gratuity eligibility entirely.
What happens to gratuity if an employee is terminated for misconduct?
If an employee is dismissed for gross misconduct under Article 44 of the UAE Labour Law, they lose entitlement to gratuity. Misconduct includes theft, fraud, or repeated policy violations. For other termination reasons, employees remain eligible for full end-of-service benefits.
How long does it take to receive gratuity after leaving a job in the UAE?
Employers are legally required to pay all end-of-service dues, including gratuity, within 14 days of the employee’s final working day. Delays can be reported to MOHRE, which may impose penalties or initiate enforcement actions to recover the owed amount on behalf of the employee.