Gratuity Calculator UAE (2025) — MOHRE Compliant
Instant end-of-service (EOS/EOSB) calculation for Dubai, Abu Dhabi & all Emirates.
This free gratuity calculator follows MOHRE rules. It excludes unpaid leave, applies the correct rate for each year, and handles part-time percentages. Your data stays on your device.
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Online UAE end-of-service (gratuity) calculator for Mainland and Free Zones — accurate, private, and up to date.
Gratuity Calculator UAE Guide
Working as an expat in Dubai, Abu Dhabi, or Sharjah? You’ve probably wondered how much you’ll receive when your job ends. The math behind end-of-service benefits (EOSB) can feel confusing — that’s why our free gratuity calculator UAE, aligned with the UAE’s Ministry of Human Resources and Emiratisation (MOHRE) regulations, makes gratuity calculation easy and shows exactly how to calculate gratuity in UAE with confidence.
What is Gratuity?
In Arabic gratuity is called “مكافأة نهاية الخدمة” — a legally mandated lump-sum payment given to employees at the end of their service, mandated by UAE Labour Law for private-sector employees who complete at least one year of continuous service. It’s based on your basic salary and years of service, rewarding long-term commitment.
For a complete understanding of how gratuity fits within UAE employment rules—including contracts, leave, working hours, and end-of-service rights—refer to our UAE Labour Law 2025 Guide, which explains every section in plain English and helps you apply the law correctly using the UAE gratuity calculator. Confused about gratuity in cases of shutdown, absconding or suspension? Our Company Shutdown, Absconding & Suspension Gratuity Guide explains it with MOHRE references.
Most employees in the UAE follow the standard MOHRE gratuity calculation rules described below.
How this calculator works
This calculator estimates end‑of‑service gratuity (EOSB) for private sector employees in the UAE. It uses current MOHRE rules for limited contracts and also supports legacy/unlimited logic where the user applied in advance options.
Quick facts
- Only basic salary counts.
- Total gratuity is capped at 2 years’ wage (except ADGM).
- Employers must pay all dues within 14 days (Mainland) or 21 days (ADGM) from the date of contract termination.
How to Use the Gratuity Calculator UAE for Precise Gratuity Calculation
If you’re wondering how to do gratuity calculation accurately, this section will guide you step by step. Start with our quick video tutorial below for a simple walkthrough, or if you prefer reading? Follow the detailed instructions for using the gratuity calculator UAE:
1) Choose your regime
• If you’re a Mainland employee → select Mainland.
• If you’re a Free Zone employee → select Free Zone.
• If you’re an ADGM employee → select Free Zone and tick “ADGM (no cap)” so the cap is not applied.
• If you’re in DIFC → this tool doesn’t apply; DIFC uses DEWS (see the DIFC/DEWS guide).
2) Enter Basic Salary (AED)
Type your basic salary only. Exclude allowances (housing, transport, etc.).
Example: If monthly pay is AED 12,000 but your basic salary is AED 7,000, enter AED 7,000.
3) Add your service dates (dd/mm/yyyy)
Enter your Start date and End date in dd/mm/yyyy.
The calculator automatically prorates partial years and deducts any unpaid leave you enter.
4) Calculate and review the result
Click Calculate Gratuity. You’ll see:
• Estimated Gratuity (total)
• Basic, Service (days + Y/M/D), Daily Wage, Unpaid, Cap, Contract, Reason
• A year-by-year breakdown for transparency
• Step-by-Step Calculation for formula steps to show how we calculate gratuity
5) Advanced (if needed)
• Part-Time (% of Full-Time): scales entitlement for part-time roles.
• Unpaid leave (days): excludes those days from service automatically.
• Wage frequency: Monthly / Weekly / Daily (auto-converted to daily rate).
• Contract Type & Leaving Reason:
– Unlimited + Resignation (legacy): <3y → 1/3; 3–<5y → 2/3; ≥5y → full.
– Unlimited + Termination: full entitlement.
– Limited: standard rule based on total service.
Free Zone Gratuity (2025): MOHRE vs ADGM vs DIFC
Most free zones JAFZA, DMCC, DAFZA, SAIF Zone, Hamriyah, and RAKEZ follows MOHRE rule: 21 days/year for the first 5 years, then 30 days/year; unpaid leave excluded; cap = two years’ basic wage; payment within 14 days. Use our Free Zone Gratuity Calculator on this page to get an instant result.
In the light of ADGM Employment Regulations 2024 effective 1 Apr 2025, ADGM keeps the 21/30-day model but has some important differences:
- No two-year cap under the new regulations.
- Daily rate is basic ÷ 365 (not ÷ 30).
- Employer must pay within 21 days of termination.
- Employers may offer a pension or savings scheme instead of gratuity.
Select ADGM in the Free Zone calculator tab to apply these settings.
In DIFC, the legacy gratuity formula is replaced by DEWS (a Qualifying Scheme). Employers make monthly contributions to your scheme account; returns depend on the investment fund you choose. Because DEWS is contribution-based, it can’t be computed with a standard gratuity formula.
Need zone-specific steps? Check the DIFC DEWS guide (contributions, legacy, top-ups) and If you’re in JAFZA, start with our JAFZA gratuity guide.
For the all Free Zone Gratuity rules 2025—and related topics like special cases dispute resolution or domestic-worker entitlements—use the links below.
Gratuity Calculation Formulas
Under UAE Labour Law, gratuity on the mainland follows MOHRE’s rules. The entitlement varies depending on whether the employee is under a limited contract (post-2022) or an older unlimited contract (pre-2022). The sections below explain both cases with formulas and worked examples.
Limited Contracts
Since February 2, 2022, all employment contracts in the UAE have been converted to fixed-term agreements, replacing the older unlimited model. Under this law, employees are entitled to full gratuity regardless of whether they resign or are terminated, and employers must settle the payment within 14 days of the last working day.
To ensure fairness and consistency, the MOHRE has provided the following clear gratuity calculation formula, allowing both workers and employers to determine benefits accurately:
| Service duration | Entitlement | How it’s calculated |
|---|---|---|
| 1–5 years | 21 days per year | (Basic × 21 × Years) ÷ 30 |
| More than 5 years | 30 days per year (beyond 5) | (Basic × 21 × 5) ÷ 30 + (Basic × 30 × Years over 5) ÷ 30 |
| Overall cap (UAE Labour Law) | Max two years’ basic pay | If total exceeds the cap, the cap amount applies |
Example – Limited contract: Radhika, a Dubai marketing manager, earned AED 10,000 monthly for 6 years. For the first 5 years, she received AED 35,000 (7,000 × 5 years × 21 ÷ 30). In the 6th year, she received AED 10,000 (30 days). Total = AED 45,000.
Even a few extra months of service can significantly increase UAE gratuity payouts, especially with salaries around AED 10,000.
Maximum gratuity in UAE: A statutory cap applies — the total end-of-service benefit cannot exceed two years’ basic salary. If the calculated total is higher, the cap amount applies.
Legacy (Pre-2022) Unlimited Contracts
In rare cases, contracts have not been updated to the new limited-contract system, which may lead to penalties under Under UAE Labour Law, Federal Decree–Law No. 33 of 2021.
Our team has handled many legacy unlimited contract cases, and this guide helps you understand how gratuity calculation in the UAE applies under the previous laws and how the calculator treats those scenarios.
If you select “Unlimited” under Contract Type (Advanced options), the tool automatically applies the pre-2022 (old-law) rules. It also excludes unpaid leave days from service before calculation and applies the 24-month cap last.
If you’re still on an unlimited contract, our UAE gratuity calculator automatically uses the pre-2022 rules when you select “Unlimited” under the contract type in the advanced options.
Under the old law:
- Resignation gratuity could be reduced (Articles 137–138)
- Termination gratuity followed Article 132
- Review your notice period (Article 43) and misconduct rules (Article 120)
See the table below for the UAE gratuity formula and detailed gratuity calculation steps.
| Case | Years of Service | Entitlement | Formula |
|---|---|---|---|
| Resignation | 1–3 years | ⅓ of 21 days per year | ((Basic ÷ 30) × 21 × Years) × 1/3 |
| 3–5 years | ⅔ of 21 days per year | ((Basic ÷ 30) × 21 × Years) × 2/3 | |
| Above 5 years | Full gratuity (21 days up to 5 yrs, then 30 days) | ((Basic ÷ 30) × 21 × 5) + ((Basic ÷ 30) × 30 × (Years - 5)) | |
| Termination | 1–5 years | 21 days per year | (Basic ÷ 30) × 21 × Years |
| Above 5 years | Full gratuity (21 days up to 5 yrs, then 30 days) | ((Basic ÷ 30) × 21 × 5) + ((Basic ÷ 30) × 30 × (Years - 5)) | |
| Overall Cap | Maximum 2 years’ basic wage | If total exceeds cap → apply cap | |
Example – Unlimited Contract: If you resign after 2 years with a basic salary of AED 6,500:
- Daily wage = AED 6,500 ÷ 30 = ~AED 217
- Gratuity = 217 × 21 × 2/3 = ~AED 3,038
Employers may also deduct approved loans or advances before paying EOSB, as allowed under Article 135 of the UAE Labour Law. These deductions are typically addressed in the full and final settlement process. Full and Final Settlement (FFS) typically includes unpaid salary, leave encashment, gratuity (EOSB), and any approved deductions. This ensures all financial dues between employer and employee are cleared at the end of service.
Domestic Worker Gratuity
If you’re looking for a domestic worker gratuity calculator MOHRE, note that unlike the standard UAE Labour Law formula, domestic workers fall under Federal Decree-Law No. 9 of 2022, and the law does not publish a fixed formula for UAE domestic worker gratuity. Employers must settle compensation within 10 days, in accordance with the law’s executive rules, current MOHRE guidance, and the worker’s contract.
Structure (for understanding, not an official formula):
- Daily basic wage = monthly basic ÷ 30
- Annual entitlement = days per year set in your contract/guidance
- Estimated EOS = daily basic wage × annual entitlement × years of service
Note: Partial years may be prorated where applicable; always rely on the official output.
Tip: Searching for “domestic worker gratuity UAE”? Read our full Domestic Worker Gratuity Guide for worked examples and eligibility rules.
Tax Implications of Gratuity
Gratuity is tax-free in the UAE, allowing expats to retain their full end-of-service benefits. However, repatriating your payout to your home country may trigger local taxes, as some nations treat lump-sum payments as taxable income. For example, countries like India or the UK may apply income tax based on residency status. Speak with a financial advisor to fully understand your responsibilities and plan accordingly.
Gratuity Disputes: How to Resolve Them
Under Article 51 of Federal Decree-Law No. 33 (2021), expatriates in the private sector have the right to receive their gratuity payment within 14 days after their employment ends. Delays may result in MOHRE fines.
If your end-of-service benefits are delayed or disputed, first contact HR with your contract and records. If unresolved, file a complaint via MOHRE (800 60 or portal). MOHRE resolves most labour disputes quickly, especially gratuity claims below AED 50,000.
For complex cases, consult a labour lawyer or refer to our Gratuity Dispute Resolution Guide.
Can Gratuity Be Denied?
You might lose gratuity if:
- You quit without serving notice (unless the employer breached terms).
- You’re fired for misconduct (e.g., theft).
- You leave before one year.
Secure Your End-of-Service Benefits
- Review Your Contract: Check salary, notice period, and terms.
- Know Your Rights: Read MoHRE’s guidelines
- Keep Records: Store contracts, payslips, and attendance records.
- Discuss with Employer: If disputes arise, send a polite email like following sample draft:
Dear [HR Manager],
I’ve worked 4 years and want to confirm my gratuity per UAE labour law. Can we discuss next steps?
Regards, [Your Name]
If issues persist, contact MOHRE or a lawyer
Common Mistakes to Avoid
You need to avoid the following while using gratuity calculator UAE:
- Wrong Salary Input: Confusing gross salary vs basic salary, use only basic salary for gratuity calculation, not total pay.
- Incorrect Dates: Double-check start/end dates.
- Ignoring Contract Type: Limited or unlimited contracts? it can affect end-of-service benefits.
- Unpaid Leave Errors: Exclude sabbaticals from service years.
- Forgetting contract renewals count toward total service years.
The legal basis for gratuity, contracts, and leave comes from the UAE Labour Law 2025 guide
Eligibility Checklist for Gratuity in UAE(2025)
- Gratuity eligibility days/ period — you must complete at least one full year of continuous service to qualify as per UAE labour law, Article 51.
- Expat in private sector (not UAE national).
- Limited (post-2022) or unlimited (pre-2022) contract.
- No misconduct termination or resignation without notice.
- Part-time: 1+ year, pro-rated salary.
- If someone passes away or gets disabled from work, gratuity is paid in full. The employer has 10 days to pay the employee/ legal heirs after the paperwork is sorted. Work-injury compensation is addressed in detail in Article 37.
Estimate your payout in seconds with our trusted gratuity calculator UAE.
Alternative End-of-Service Savings Scheme
The alternative End-of-Service Benefits System is a voluntary scheme that allows expatriates to invest their end-of-service benefits in Emirates Securities and Commodities Authority (ESCA) approved funds with a proven track record of solid returns. If you’re conducting a settlement estimation, it’s worth considering this option. Details on these alternative End-of-Service Benefits investment choices, including contact information, registration process, and withdrawal procedures, can be found on the official on the MOHRE official website.
For practical strategies on where and how to grow your end-of-service benefits, check out our upcoming guide on gratuity investment in UAE—featuring top smart investment options in the UAE tailored for expats.
Gratuity vs Tip (UAE)
- Gratuity: Legal end-of-service entitlement (EOSB) under UAE Labour Law; paid by the employer.
- Tip: Voluntary payment from customers for service; not part of EOSB; not governed by Articles 51/132/137/etc.
- Calculator scope: This gratuity calculator UAE estimates EOSB only — tips are excluded.
Benefits of Using Our Gratuity Tool
Free to use
Our online end-of-service calculator is completely free. Use it anytime!
Partial Year
Gratuity calculator UAE adjusts fractional period like 3.7 years to provide precise results.
Labour Law
The end-of-service calculator follows 2025 UAE gratuity rules & updates.
Easy to use
Employees can use it independently with ease.
Then what are you waiting for? Let our free online end-of-service calculator help you forecast your gratuity calculation UAE confidently.
Frequently Asked Questions (FAQs)
Final Thoughts on Gratuity Calculation
Calculating your end-of-service benefits doesn’t have to be a hassle. Our gratuity calculator UAE simplifies the process for expats wondering how to calculate gratuity in UAE. With clear gratuity formulas, updated 2025 labour rules, and well-defined eligibility criteria, you can confidently complete your gratuity calculation and claim every dirham you’ve earned using our trusted gratuity calculator UAE.
Author Bio
Noor Al Emarat (CIPD-Certified HR Specialist) is part of the Gratuity Calculator UAE Editorial Team. She has over a decade of experience in HR compliance, employment contracts, payroll, and end-of-service (EOSB) calculations across UAE Mainland and major Free Zones. Holding CIPD Level 5 (HR), SHRM-CP, and postgraduate training in UAE Labour Law, she focuses on making complex UAE labour laws and HR topics clear, practical, and reader-friendly.
The Gratuity Calculator UAE team, consisting of law and HR-qualified professionals, uses real case experience to develop accurate, MOHRE-aligned gratuity guides and tools. Their mission is to help UAE employees and employers understand gratuity rules, end-of-service benefits, and labour rights with clarity, confidence, and compliance.
