Gratuity Calculator UAE 2025: Calculate End-of-Service Benefits
Enter your basic salary, employment dates, and other details to calculate your UAE end-of-service gratuity for 2025.
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Guide to Use Gratuity Calculator UAE
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 can get complex — 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.
If you work on the mainland, the calculator automatically factors in your salary, contract type, and duration of service. Just enter a few basic details — the UAE gratuity calculator does the rest.
What is Gratuity?
Gratuity is a 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 deeper look into special cases like legacy contracts, maternity leave, and part-time shifts, explore our detailed guide on UAE Gratuity Special Cases for accurate gratuity calculation in non-standard situations. Confused about gratuity in cases of shutdown, absconding or suspension? Our Company Shutdown, Absconding & Suspension Gratuity Guide explains it with MOHRE references.
Most employees will follow the standard calculation rules explained below.
How to Use the Gratuity Calculator for Precise Gratuity Calculation in the UAE
If you’re wondering how to do UAE gratuity calculation accurately, this section walks you through the steps of a proper gratuity calculation based on your details. Follow this step-by-step guide to use our end-of-service calculator:
- Enter Basic Salary
Use only your basic salary, excluding extras like housing or transport allowances. For example, if your monthly pay is AED 12,000 but your basic salary is AED 7,000, input AED 7,000. Including bonuses is a common mistake for expats. - Input Service Dates
Gratuity depends on exact start and end dates. Check your contract or emails for accuracy. Our UAE gratuity calculator prorates partial years automatically (e.g., 3.7 years). You can rely on our UAE gratuity calculator to process fractional years accurately — no complex spreadsheet needed.
Example: Aisha, a Sharjah teacher with an AED 10,000 basic salary, worked 4 years. Using our tool, she found she’d get AED 28,000—perfect for her savings! - Select Contract Type and Exit Reason
Choose between a limited (fixed-term, up to 4 years) or unlimited contract. For pre-2022, unlimited contracts, resignation reduces gratuity, while termination grants the full amount after one year. Since February 2022, all contracts have been fixed-term in the UAE as per the Labour Ministry. - Account for Unpaid Leave
Unpaid leave, like sabbaticals, doesn’t count toward service years. Verify your records to ensure accurate results.
Free Zone Gratuity
If you work in a free zone such as ADGM, JAFZA, DMCC, or RAKEZ, our separate Free Zone Gratuity Calculator provides accurate gratuity calculation tailored to each zone’s specific rules. For example, ADGM does not impose a cap on the basic salary when calculating end-of-service benefits.
For DIFC employees, end-of-service benefits follow different regulations, including the DEWS savings scheme, which cannot be uniformly calculated like other free zones. Please consult your employer or the scheme manager directly for details on your gratuity entitlements.
For comprehensive information on free zone gratuity rules, including exceptions like ADGM and DIFC’s unique gratuity system, please refer to our detailed 2025 Guide to Free Zone Gratuity. Free zone employees in JAFZA can also check our JAFZA gratuity guide for tailored rules.
Gratuity Computation – Mainland (Private Sector)
Limited Contracts
Since February 2, 2022, all contracts are fixed-term, and both resignation and termination yield full gratuity, payable within 14 days. The MOHRE gratuity calculation formula for accurate gratuity calculation is as below. The MOHRE’s gratuity calculation formulas, which are built into our UAE gratuity calculator for your convenience, work as follows:
| 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: 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.
You might be surprised how much a few extra months add to her gratuity payout — especially with salaries around AED 10,000.
Unlike standard UAE Labour Law gratuity (21/30-day formula with a two-year cap), domestic workers are covered by Federal Decree-Law No. 9 of 2022, not the mainland private-sector Labour Law. Employers must settle due compensation within 10 days of contract expiry. The calculation is determined by the law’s executive rules, current MOHRE guidance and, importantly, 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 pro-rated where applicable; always rely on the official output.
Tip: Searching for “domestic worker gratuity UAE”? Read our full Domestic Worker Gratuity Guide for examples and eligibility rules.
Legacy (Pre-2022) Unlimited Contracts
For older unlimited contracts, payouts vary:
| 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 | |
In mainland UAE, end-of-service gratuity is capped at two years’ basic pay under UAE Labour Law (Federal Decree-Law No. 33 of 2021). You can use the UAE gratuity calculator provided above to check your entitlement if you have an older unlimited contract.
Example: You quit after 2 years with a AED 6,500 basic salary.
Daily wage = AED 6,500 ÷ 30 = ~AED 217.
Gratuity = 217 × 21 × 2/3 = ~AED 3,038.
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’s helpline (800 60) or portal. MOHRE actively resolves a majority of labour disputes quickly, especially claims under 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.
Common Mistakes to Avoid
You need to avoid the following while using UAE gratuity calculator:
- Wrong Salary Input: 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.
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
Eligibility Checklist for Gratuity in UAE(2025)
- At least 1 year of continuous service 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.
Estimate your payout in seconds with our trusted UAE gratuity calculator.
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. Detailed information on these alternative End-of-Service Benefits investment options, including contact details, registration, and withdrawal, is available here for quick reference.
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.
Benefits of Using Our Gratuity Tool
Free to use
Our online end-of-service calculator is completely free. Use it anytime!
Partial Year
UAE gratuity calculator 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 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.
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Written by Noor Al Emarat — Editorial Team at Gratuity Calculator UAE. The team focuses on accurate, practical guidance covering gratuity calculations, HR processes, and UAE labour law. Every article is carefully reviewed to help both employees and employers understand end-of-service benefits and workplace rights with confidence.