UAE Labour Law · Updated 2026
UAE Gratuity Calculator
Calculate your estimated UAE end-of-service gratuity in seconds using your basic salary, joining date, last working date, unpaid leave, and employment type.
Independent calculator. Not affiliated with MOHRE or any UAE government authority. Estimate only, not legal advice.
Last reviewed: . Estimate only — not legal advice.
Quick answer
UAE gratuity is generally calculated on basic salary. Eligible employees receive 21 days of basic salary per year for the first five years and 30 days per year after five years, capped at two years’ wage.
Use this free UAE gratuity calculator to estimate end-of-service benefits in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. It is designed for UAE private-sector employees and uses basic salary, length of service, and unpaid leave to produce a practical estimate.
Estimate your gratuity
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Save your gratuity wisely
Before spending your end-of-service payment, clear urgent dues, keep an emergency fund, and avoid unnecessary debt.
Gratuity is not the same as full final settlement
Your end-of-service payment usually includes more than gratuity. Check that each item below is settled correctly.
- Unpaid salary up to your last working day
- End-of-service gratuity
- Unused annual leave (leave encashment)
- Notice period pay or compensation in lieu
- Approved commissions or bonuses
- Expense reimbursements owed to you
- Deductions / loans / advances (subtracted lawfully)
- Air ticket entitlement (if your contract provides one)
- Other contractual benefits
Result explanation
How to understand your gratuity result
The result is an estimated UAE end-of-service gratuity amount. It is designed to help employees and HR teams understand the likely gratuity figure before checking the final settlement with official sources or a qualified professional.
Estimated gratuity
This is the calculator’s best estimate using your basic salary, service dates, unpaid leave and employment type.
Warnings and exceptions
If you select DIFC, ADGM, government, domestic-worker, UAE/GCC national or savings-scheme options, the calculator shows warnings because different rules may apply.
Not full settlement
Your final settlement can include unpaid salary, unused leave, notice pay, deductions, reimbursements and other contractual benefits in addition to gratuity.
Build an emergency fund
A small safety fund can protect your family during a job change. Aim to keep a few months of essential expenses aside.
How to use
How to use this UAE end of service calculator
This one-page calculator is built for quick, private and practical estimates. You do not need to enter your name, phone number, email, Emirates ID or employer name.
Select your workplace type
Choose mainland UAE, free zone, DIFC, ADGM, domestic worker, government sector or “not sure”. This helps the tool show the correct warnings.
Enter employment dates
Add your joining date, last working date and unpaid leave days. Unpaid leave is deducted from the service period before calculation.
Use basic salary only
Enter your monthly basic salary, not your total package. Housing, transport and most allowances are excluded from the gratuity base.
Add part-time hours if needed
For part-time or job-sharing work, open advanced options and enter your contracted hours and full-time annual hours to pro-rate the estimate.
Review the result
Check the estimated gratuity, service period, gratuity days, formula explanation and any jurisdiction-specific notices shown in the result.
Compare with final settlement
Use the final-settlement checklist below to remember unpaid salary, unused leave, notice pay, deductions and reimbursements.
Formula
UAE gratuity formula: how end-of-service benefits are calculated
For standard UAE private-sector employees, gratuity is built from your basic salary and your length of service. You must complete at least one full year to be eligible.
1. Daily basic salary
Your basic monthly salary divided by 30 gives your daily basic salary.
2. 21 days for years 1–5
For each of your first five years, you earn 21 days of basic salary.
3. 30 days after 5 years
Every year beyond five years earns 30 days of basic salary, capped at two years' wage.
daily basic = basic monthly salary ÷ 30years 1–5 → 21 days × basic per year · after year 5 → 30 days × basic per yeartotal gratuity = capped at 24 × basic monthly salary (2 years' wage)
Partial years after the first complete year are counted proportionally. Unpaid leave days are removed from your service period before the calculation.
Salary basis
Basic salary vs gross salary
UAE gratuity is calculated on your basic salary only — not your total package. Gross (total) salary usually includes allowances that are not counted for gratuity.
If your contract or pay slip shows a single combined figure, your basic salary is normally listed separately. When unsure, use the basic salary stated in your employment contract or MOHRE offer letter.
| Counted as basic salary | Yes |
|---|---|
| Housing allowance | No |
| Transport allowance | No |
| Commissions / bonuses | No |
| Overtime | No |
Allowances are excluded from the gratuity base under UAE Labour Law.
Eligibility
Who is eligible for gratuity in the UAE?
One year minimum
You must complete at least one full year of continuous service. Less than a year usually means no gratuity, though other final-settlement items may still be due.
Private-sector employees
This calculator is built for private-sector employees under the general UAE Labour Law framework.
Unpaid leave excluded
Periods of unpaid leave are not counted as service and are removed before the calculation.
Separate frameworks
DIFC, ADGM, domestic workers and government employees follow different rules and are handled separately.
Reason for leaving
Resignation vs termination gratuity
Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021), the old rules that reduced gratuity for resignation have been removed.
If you resign
As long as you complete at least one year, resignation is calculated using the same main formula as termination. There is no longer a one-third or two-thirds reduction.
If you are terminated
Termination, contract expiry, redundancy and mutual agreement all use the same gratuity formula when you are eligible. Dismissal for proven gross misconduct can affect entitlement — seek advice if that applies.
The reason for leaving changes the guidance and warnings you see, but it does not reduce the gratuity amount under the standard private-sector formula.
Know your employment rights
Keep copies of your contract, payslips, visa documents, leave records and final settlement letter before your last working day.
By emirate
Dubai gratuity calculator, Abu Dhabi gratuity calculator and other Emirates
For most private-sector employees, the main gratuity formula is federal and does not change simply because the employee works in Dubai, Abu Dhabi, Sharjah or another Emirate. The important question is whether the employee is under the normal UAE private-sector framework or a separate jurisdiction.
Dubai gratuity calculator
Employees in Dubai who work in the normal private sector generally use the standard UAE Labour Law gratuity formula: basic salary, service period, unpaid leave and the applicable 21-day/30-day rates. If you work in DIFC, select DIFC in the calculator because DEWS or another qualifying workplace savings scheme may apply instead of the normal gratuity method.
Abu Dhabi gratuity calculator
Employees in Abu Dhabi under the normal private-sector system generally use the same UAE gratuity calculation used elsewhere in the country. If you work in ADGM, select ADGM because ADGM has its own employment regulations and a different daily basic-wage approach.
Sharjah, Ajman, RAK, Fujairah and UAQ
The same UAE private-sector gratuity principles generally apply in Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain unless your employment falls under a special jurisdiction, approved savings scheme, government framework, domestic-worker rules or pension scheme.
Use the jurisdiction selector at the top of the calculator if you are not sure. The tool will show caution messages where separate rules or schemes may apply.
Part-time & job-sharing
Part-time gratuity in the UAE
Part-time and job-sharing employees can still be entitled to gratuity. The full-time equivalent gratuity is pro-rated by the ratio of your contracted hours to full-time hours.
Enter your part-time and full-time annual hours under Advanced options in the calculator. You still need at least one year of service to be eligible.
ratio = part-time annual hours ÷ full-time annual hourspart-time gratuity = full-time gratuity × ratioExample: a 50% ratio applied to a full-time gratuity of AED 20,000 gives AED 10,000.
Financial free zones
DIFC and ADGM
DIFC (DEWS)
DIFC employees are usually covered by the DIFC Employee Workplace Savings scheme (DEWS) or another qualifying workplace savings scheme. This calculator does not estimate DEWS balances — check your DEWS account, your employer's contribution records, or DIFC employment guidance.
ADGM
ADGM has its own employment regulations. Eligibility still starts at one year, with 21 days' basic wage for years 1–5 and 30 days thereafter, but the daily wage is based on annual basic wage ÷ 365, and basic wage should be at least 50% of total wages. Select ADGM in the calculator for an ADGM-specific estimate and warnings.
Final settlement
UAE final settlement calculator checklist
Gratuity is only one part of your end-of-service payment. Before signing a final settlement letter, check whether the following items apply to your case.
Amounts usually added
Unpaid salary up to the last working day, end-of-service gratuity, unused annual leave encashment, approved expenses, earned commissions or bonuses, and contractual benefits.
Amounts that may be deducted
Lawful deductions may include salary advances, loans, damaged company property where contractually allowed, or other amounts properly owed by the employee.
Documents to keep
Keep your offer letter, labour contract, payslips, leave records, resignation or termination letter, settlement calculation and proof of payment.
Before signing
Compare the settlement with your contract and official guidance. If something looks wrong, ask HR for the calculation breakdown before signing.
Worked examples
Example gratuity calculations
Each example uses the standard UAE private-sector formula on basic salary.
| Basic salary | Service | Daily basic | Gratuity days | Estimated gratuity |
|---|---|---|---|---|
| AED 5,000 | 11 months | AED 166.67 | 0 | AED 0 |
| AED 5,000 | 2 years | AED 166.67 | 42 | AED 7,000 |
| AED 8,000 | 3 years | AED 266.67 | 63 | AED 16,800 |
| AED 10,000 | 5 years | AED 333.33 | 105 | AED 35,000 |
| AED 12,000 | 6 years | AED 400.00 | 135 | AED 54,000 |
| AED 15,000 | 10 years | AED 500.00 | 255 | AED 127,500 |
| AED 20,000 | 12 years | AED 666.67 | 315 | AED 210,000 |
| AED 10,000 | 5 years, 30 unpaid days | AED 333.33 | About 103.27 | About AED 34,423 |
| AED 10,000 | Part-time 50%, 5 years | AED 333.33 | 105 × 50% | AED 17,500 |
Real results may differ slightly because service is counted in calendar days, and partial years are pro-rated.
Beware of job scams
Never pay money for a job offer, interview, visa promise or guaranteed employment. Verify recruiters and protect your documents.
Common mistakes
Common UAE gratuity calculation mistakes to avoid
Most incorrect gratuity estimates happen because the wrong salary base, dates or jurisdiction are used. Check these points before relying on any result.
Gratuity is based on basic salary. Do not include housing, transport, overtime, commissions or most allowances in the gratuity base.
Unpaid leave can reduce the service period used for gratuity. Add unpaid leave days in the calculator for a more realistic estimate.
Employees usually need at least one full year of continuous service before gratuity becomes payable.
DIFC and ADGM can follow separate employment frameworks. Select the right jurisdiction before reading the result.
Final settlement may also include leave encashment, unpaid salary, notice pay, deductions and reimbursements.
Save your contract, payslips, resignation or termination letter, leave balance and settlement calculation before your last working day.
Public awareness
Helpful awareness messages for employees and families
This website keeps some banner spaces for non-commercial public-awareness messages. They do not drive traffic anywhere and are included only to promote responsible financial, employment and community habits.
Save your gratuity wisely
Use end-of-service money to protect your future, not only for short-term spending.
Build an emergency fund
Keep a few months of essential expenses aside before making big purchases.
Know your employment rights
Read your contract, check your settlement and keep your documents safe.
Beware of job scams
Never pay money for a job offer, interview, visa promise or guaranteed employment.
Questions & answers
UAE gratuity calculator FAQ
It is a free tool that estimates your end-of-service gratuity using your basic salary, joining date, last working date, unpaid leave, and employment type, based on UAE Labour Law principles.
Divide your basic monthly salary by 30 to get a daily rate, then apply 21 days per year for the first five years and 30 days per year afterwards. The total is capped at two years' wage.
Gratuity is calculated on basic salary only. Allowances such as housing, transport, commissions and overtime are not included.
Basic salary is the core fixed amount in your contract before allowances. It is usually shown separately on your offer letter or pay slip.
No. Housing, transport, and other allowances are excluded from the gratuity calculation under UAE Labour Law.
Yes, if you complete at least one year of continuous service. The current law uses the same formula for resignation and termination, with no old-style reduction.
Yes, if you are eligible. Termination generally uses the same standard formula. Dismissal circumstances can affect notice, deductions or disputes in your final settlement, so verify your specific case against current law.
Gratuity is generally not payable before completing one full year of continuous service, but you may still be owed unpaid salary and unused leave.
At exactly one year you become eligible. You earn 21 days of basic salary, calculated on your daily basic rate.
For the first five years you earn 21 days per year. From the sixth year onward you earn 30 days of basic salary per year.
You receive 21 days for each of the first five years plus 30 days for each year after that, so ten years equals 105 plus 150 days, capped at two years' wage.
Yes. Unpaid leave days are removed from your service period before the calculation, which can reduce your gratuity.
No. Paid annual leave is part of your normal service and does not reduce gratuity.
Approved paid sick leave is normally counted as service. Long unpaid absence may not be counted.
Statutory paid maternity leave is generally counted as continuous service and should not reduce your gratuity.
Total gratuity cannot exceed the equivalent of two years' wage, which this calculator treats as 24 times your basic monthly salary.
An employer may lawfully deduct amounts you genuinely owe, such as outstanding loans or advances, before paying your gratuity.
Gratuity and other final-settlement amounts are normally paid within a short period after your last working day. Check current MOHRE guidance for the exact timeframe.
No. Notice pay or compensation in lieu of notice is a separate item in your final settlement.
No. Unused annual leave is paid as separate leave encashment, not as part of gratuity.
No. Final settlement includes gratuity plus unpaid salary, leave encashment, notice pay and other contractual items.
Yes, for Dubai private-sector employees under the general UAE Labour Law framework. DIFC employees follow separate rules.
Yes, for Abu Dhabi private-sector employees under the general framework. ADGM employees should select ADGM for specific rules.
Yes. The standard UAE private-sector formula generally applies in Sharjah and the other emirates.
For free zones that follow the UAE Labour Law, yes, with a caution note. DIFC and ADGM have their own frameworks.
No standard calculation is shown for DIFC. DIFC employees are usually covered by DEWS or a qualifying savings scheme.
ADGM has its own employment regulations. The calculator provides an ADGM-specific estimate with relevant warnings.
No. Domestic workers are governed by separate legislation, so this calculator does not calculate their gratuity.
UAE nationals are usually covered by pension and social security schemes, so a pension disclaimer is shown instead of a standard expatriate estimate.
GCC nationals are typically covered by their home-country social insurance schemes, so a pension disclaimer is shown.
If your employer uses an approved savings scheme, contributions may replace traditional gratuity from the scheme start date. Traditional gratuity may still apply for earlier service.
Gratuity is generally based on your last drawn basic salary. If your salary changed, the most recent basic salary is usually used.
Enter your basic monthly salary, not your total or gross package. Use the basic figure from your contract.
Check your employment contract, offer letter, or pay slip, where basic salary is normally listed separately from allowances.
Yes. Many people use it to plan before resigning. Remember the result is an estimate, not a guarantee.
Yes. HR and payroll teams can use it for quick estimates, but should verify final figures against the contract and current law.
No. This calculator provides an estimate only and is not legal advice. Verify your settlement with MOHRE, your employer, or a qualified professional.
It applies the formula described on this page, but real results depend on your contract, jurisdiction, approved savings scheme, pension status and lawful deductions.
The most common reason is less than one year of service. Unpaid leave reducing service below a year, or an unsupported category, can also produce zero.
Yes. After calculating, you can copy a summary, print, or download your result as a text file.
We do not collect your name, email or phone. Your estimate is calculated in your browser. Only if you accept analytics, privacy-safe bucketed values (not your exact salary, dates or amount) may be sent to analytics.
No. We never ask for your name, phone number, email, Emirates ID, passport, visa, labour card or employer name.
Your exact salary is used in your browser to generate the estimate and is never sent to GA4. If you accept analytics, only a salary range (bucket) is recorded, never linked to your identity.
It is reviewed periodically against UAE Labour Law. The last reviewed date is shown in the hero and footer.
Official sources
Sources and methodology
This independent calculator is based on publicly available employment law references and official guidance. It provides an estimate only and is not legal advice.
Prepared and reviewed
| Prepared by | UAE Gratuity Calculator editorial team |
|---|---|
| Reviewed | May 2026 |
| Methodology | Based on publicly available UAE employment law references listed below |
Formula basis
The standard UAE estimate uses basic salary, 21 days per year for the first five years, 30 days per year after five years, unpaid leave deduction, and the two-years’ wage cap.
Inputs used
Jurisdiction, employment type, employee category, reason for leaving, joining date, last working date, basic salary, optional gross salary, unpaid leave and part-time hours.
Excluded from gratuity
Housing allowance, transport allowance, overtime, commissions, bonuses and most variable or non-basic salary payments are not included in the gratuity base.
What this does not cover
It does not replace legal advice, does not calculate DEWS balances, and does not determine disputes, pension entitlements, domestic-worker entitlements or government-sector rules.
- UAE Government portal: End of service benefits for workers in the private sector
- MOHRE: Dear Worker – Know Your Rights
- UAE legislation portal: Federal Decree-Law No. 33 of 2021
- DIFC: Employee Workplace Savings Plan / qualifying schemes
- ADGM Rulebook: Section 61, End of service gratuity
- ADGM Employment Affairs Office: Employment Regulations 2024 guidance
Calculation methodology
Who this calculator is for: expatriate private-sector employees in mainland UAE and free zones that follow the UAE Labour Law, plus an ADGM-style estimate.
Who it is not for: UAE and GCC nationals (usually covered by pension / social security), DIFC employees (DEWS / qualifying scheme), domestic workers, government / public-sector employees, and anyone enrolled in an approved end-of-service savings scheme. For these, the tool shows guidance only rather than a standard figure.
Formula used: daily basic salary = basic monthly salary ÷ 30; 21 days of basic salary for each of the first five years of service and 30 days for each year beyond five; the total is capped at two years' wage (24 × basic monthly salary). The ADGM-style estimate uses daily basic = annual basic ÷ 365 and does not apply the standard UAE two-year cap.
Basic salary only: gratuity is based on basic salary, never gross. Housing, transport, commissions, overtime and other allowances are excluded.
Unpaid leave excluded: unpaid leave days are removed from the service period before the calculation.
Service-period methodology: the calculator converts service days into years using a 365-day year for estimation. Actual employer calculations may vary slightly depending on payroll methodology and how leap years are treated.
Estimate only: this is an estimate, not legal advice. Reviewed against public UAE Labour Law guidance as of May 2026.
Last reviewed: May 2026 · Next review: August 2026 · Corrections: corrections@uaegratuity.online
Privacy
Privacy note
What we collect
The calculator uses your inputs in your browser to generate the estimate. If analytics is accepted, we may save only privacy-safe ranges and non-identifying usage data, such as salary bucket, service-year bucket, result bucket, selected jurisdiction, device type, browser language, viewport size, referrer type and campaign parameters. Exact salary, exact dates and exact gratuity amount stay in your browser and are never sent to GA4 or Microsoft Clarity custom properties.
Why we collect it
To generate your estimate in your browser, and — only with your consent — to keep a usage record of privacy-safe ranges that helps us improve the calculator and keep it free.
What we never collect
No name, phone, email, Emirates ID, passport number, visa or labour card number, employer or company name, or uploaded contracts. If you decline analytics or have not yet chosen, no optional analytics or Clarity data is sent — and you can still calculate normally.
Analytics & dashboard data
When analytics is accepted, GA4 and Microsoft Clarity receive only bucketed, non-identifying values (for example a salary range rather than your exact salary). The included static dashboard page reads only browser-local activity records from the same device for QA/testing. It does not use an external backend or database. Exact salary, dates and the exact gratuity amount stay in your browser and are never sent to GA4. If analytics is declined or not yet chosen, no optional analytics or Clarity data is sent and your estimate still works locally in your browser.
How long records are kept
GA4 retains event data according to our configured retention period (up to 14 months); aggregate Clarity recordings are retained per Microsoft Clarity's default. Browser-local dashboard records remain only in the visitor's own browser storage and can be cleared from the dashboard page.
No sale of data
We do not sell personal data.
Access, correction & deletion
To request access, correction or deletion of any record relating to your visit, email corrections@uaegratuity.online with the approximate date and time of your visit. Before launch, make sure this email is active and monitored.
Legal
Legal disclaimer
Corrections
Contact and correction request
Found an outdated legal reference, unclear explanation or calculator issue?
Please include the page section, what looks incorrect, and the official source you are referring to. This helps keep the one-page UAE gratuity calculator accurate and useful for everyone.
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