UAE Gratuity Calculator
Estimate your end-of-service gratuity under UAE Labour Law. Enter your first working day, last working day, and basic monthly salary, and get an instant estimate based on the standard 21/30-day formula and the two-year cap.
✓ Based on Federal Decree-Law No. 33 of 2021 ✓ Applies the 2-year salary cap automatically ✓ Works on mobile
Gratuity Calculator
Enter your employment details to estimate your gratuity.
What Is a UAE Gratuity Calculator?
The end-of-service benefit every eligible private-sector employee in the UAE is entitled to.
A UAE gratuity calculator estimates the end-of-service benefit (also called EOSB, or simply "gratuity") that a private-sector employee is entitled to when their employment ends, based on their length of service and their last basic salary. It's a lump-sum payment required by UAE Labour Law, designed to give departing employees a financial cushion, whether they're moving to a new role, retiring, or leaving the country.
Under the current law — Federal Decree-Law No. 33 of 2021, which came into effect in February 2022 — gratuity is calculated the same way regardless of whether the employee resigned or was terminated, once they've completed at least one year of continuous service. This is a meaningful simplification compared to the older "unlimited contract" rules, which reduced gratuity for employees who resigned before completing five years of service.
This calculator takes your first working day, last working day, and basic monthly salary — the same three inputs used by official government gratuity calculators — and returns an estimate of your total gratuity entitlement, based on the standard 21-days-per-year (first 5 years) and 30-days-per-year (beyond 5 years) formula, capped at two years' total salary.
UAE Gratuity Formula
The standard calculation this tool applies.
UAE gratuity calculations use a standardised 30-day month to convert a monthly basic salary into a daily rate, regardless of the actual number of days in that month.
For each year of service up to the first five, the employee earns 21 days of basic salary.
For every year of service beyond the fifth, the rate increases to 30 days of basic salary per year.
Regardless of length of service, total gratuity cannot exceed two years' worth of basic salary — a ceiling built into the law itself.
How the Gratuity Calculator Works
Three inputs, one estimated payout.
Enter Your Employment Dates
Enter your first working day and your last working day (or an expected last day, if you're planning ahead).
Enter Your Basic Salary
Enter your basic monthly salary only — housing allowance, transport allowance and other benefits are excluded by law.
Automatic Calculation
The calculator works out your exact years of service, applies the 21/30-day formula, and checks the result against the two-year cap.
Review Your Estimate
See your total estimated gratuity, broken down by the portion earned in your first five years and any years beyond that.
Complete Guide to UAE Gratuity
Eligibility, the tiered formula, and what to watch out for.
Who Is Eligible for Gratuity
Under UAE Labour Law, a private-sector employee becomes eligible for end-of-service gratuity once they've completed at least one full year of continuous service. Employees who leave before completing one year are generally not entitled to any gratuity payment at all, regardless of the reason for leaving.
Why Only Basic Salary Counts
Gratuity is calculated using the employee's basic salary only — the fixed component of pay agreed in the employment contract — and explicitly excludes housing allowance, transport allowance, bonuses, and other benefits. This matters because two employees with the same total monthly pay package can have very different gratuity entitlements if their basic-to-allowance split differs.
The 21-Day and 30-Day Tiers
For each year of service up to the first five years, an employee earns 21 days of basic salary. Once service extends beyond five years, the rate for each additional year increases to 30 days of basic salary — the first five years still earn 21 days each, and only the years after that earn the higher 30-day rate.
The Two-Year Salary Cap
No matter how long an employee has worked, total gratuity cannot exceed the equivalent of two years' basic salary. This cap becomes relevant mainly for very long-tenured employees, since the 30-day-per-year rate beyond five years accumulates relatively quickly.
Resignation vs Termination Under the Current Law
Under the previous "unlimited contract" system, an employee who resigned before completing five years received a reduced gratuity — one-third of the entitlement for 1–3 years of service, and two-thirds for 3–5 years. Under the current Federal Decree-Law No. 33 of 2021, this distinction has been removed for contracts formed under the new law: gratuity is calculated the same way whether the employee resigns or is terminated, as long as the one-year minimum has been met. Employees still working under a legacy unlimited contract that hasn't yet transitioned may want to confirm which rules apply to their specific situation.
What's Excluded from the Calculation
Days of unpaid leave are not counted toward the length of service used in the gratuity calculation, which can create a small gap between an employee's calendar tenure and their gratuity-eligible tenure if they've taken extended unpaid leave. Unused annual leave is also not part of the gratuity figure itself — it's a separate final-settlement entitlement that should be paid alongside gratuity, not folded into it.
Free Zones and Employer-Specific Variations
Most UAE free zones follow the same federal gratuity framework, but some maintain their own employment regulations with minor variations, so employees in a specific free zone should confirm whether any free-zone-specific rules apply on top of the federal formula used here. When in doubt, the Ministry of Human Resources and Emiratisation (MOHRE) or your free zone authority is the authoritative source for your specific situation.
Step-by-Step Gratuity Examples
Eight worked calculations across different service lengths and salaries.
Example 1 — Four Years of Service
Basic salary AED 15,000/month, 4 years of service.
Example 2 — Two Years of Service
Basic salary AED 10,000/month, 2 years of service.
Example 3 — Beyond Five Years
Basic salary AED 12,000/month, 7 years of service.
Example 4 — Long Service, Cap Applied
Basic salary AED 8,000/month, 20 years of service.
Example 5 — Less Than One Year
Basic salary AED 9,000/month, 8 months of service.
Example 6 — Partial Final Year
Basic salary AED 20,000/month, 3 years and 6 months of service.
Example 7 — High Basic Salary, Short Tenure
Basic salary AED 30,000/month, 1.5 years of service.
Example 8 — Exactly Five Years
Basic salary AED 18,000/month, exactly 5 years of service.
At exactly five years, the entire entitlement still falls under the 21-day rate — the 30-day rate only applies to years beyond the fifth.
Quick Reference Tables
Entitlement rates and sample gratuity amounts by service length.
| Years of Service | Entitlement |
|---|---|
| Less than 1 year | No gratuity |
| 1 – 5 years | 21 days' basic salary per year |
| More than 5 years | 21 days/year (first 5) + 30 days/year (beyond 5) |
| Any length | Capped at 2 years' total basic salary |
| Years of Service | Estimated Gratuity |
|---|---|
| 2 years | AED 14,000 |
| 5 years | AED 35,000 |
| 8 years | AED 65,000 |
| 10 years | AED 85,000 |
| Years of Service | Resignation Entitlement |
|---|---|
| Less than 1 year | None |
| 1 – 3 years | 1/3 of standard entitlement |
| 3 – 5 years | 2/3 of standard entitlement |
| 5+ years | Full standard entitlement |
Benefits of Using a Gratuity Calculator
Why employees and HR teams reach for a dedicated tool.
Instant Estimate
Get a gratuity estimate the moment you enter your dates and salary, without manually applying the tiered formula.
Applies the Correct Tiers
Automatically splits your service into the 21-day and 30-day portions, so you don't have to calculate them separately.
Cap-Aware
Checks your result against the two-year salary cap automatically, flagging when it applies.
Exact Date-Based Tenure
Calculates service length directly from your actual employment dates, rather than a rounded year count.
Useful for Planning Ahead
Estimate your future gratuity using a planned resignation or contract-end date before you actually leave.
Mobile-Friendly
Check your estimated entitlement from anywhere, on any device.
Practical Applications of the Gratuity Calculator
Where this estimate is genuinely useful.
Personal Financial Planning
Employees estimate their expected end-of-service payout when planning a job change, relocation, or retirement.
HR & Payroll Estimation
HR teams use similar formulas to budget for expected gratuity liabilities across their workforce.
Job Offer Comparison
Comparing offers with different basic-to-allowance salary splits, since only the basic portion counts toward gratuity.
Contract Negotiation
Employees and employers use gratuity projections when discussing salary structure or contract renewal terms.
Dispute Preparation
Employees can prepare an independent estimate before raising a final-settlement query with an employer or MOHRE.
Relocation & Career Planning
Expats weighing whether to extend a contract past the 5-year mark often factor in the jump to the 30-day rate.
Common Gratuity Calculation Mistakes
Avoid these errors when estimating your entitlement.
Using gross salary instead of basic salary
Gratuity is calculated on basic salary only — including housing or transport allowances significantly overstates the entitlement.
Applying the 30-day rate to all years
Only years of service beyond the fifth earn the 30-day rate — the first five years always earn 21 days each, even for long-tenured employees.
Forgetting the two-year cap
Very long service periods combined with the 30-day rate can produce a raw figure above the legal cap — the final entitlement should never exceed two years' basic salary.
Counting unpaid leave as service time
Days of unpaid leave don't count toward the tenure used in the gratuity calculation, which can slightly reduce eligible service length.
Assuming legacy resignation rules still apply
Under the current law, the reduced resignation scale from old unlimited contracts generally no longer applies — confirm which contract regime governs your specific case.
Ignoring free-zone-specific variations
Some free zones maintain their own employment regulations alongside the federal framework — always confirm which rules apply to your specific employer.
Frequently Asked Questions
Everything employees ask about UAE end-of-service gratuity.
How is gratuity calculated in the UAE?
Gratuity is based on your basic monthly salary and years of service: 21 days' basic salary for each year of the first five years, and 30 days' basic salary for each additional year, capped at two years' total salary.
Am I entitled to gratuity if I resign?
Under the current Federal Decree-Law No. 33 of 2021, gratuity is generally calculated the same way whether you resign or are terminated, as long as you've completed at least one year of continuous service.
Do I get gratuity if I've worked less than a year?
No. Under the standard rule, employees must complete at least one full year of continuous service to be eligible for any gratuity payment.
Is gratuity calculated on gross salary or basic salary?
Only basic salary counts. Housing allowance, transport allowance, bonuses and other benefits are excluded from the calculation.
What is the maximum gratuity I can receive?
Total gratuity is capped at two years' worth of basic salary, regardless of how many years you've worked.
How is my daily wage calculated for gratuity purposes?
Your basic monthly salary is divided by 30 to get a standardised daily wage, which is then multiplied by 21 or 30 depending on your years of service.
Does unpaid leave affect my gratuity?
Yes. Days of unpaid leave are not counted toward the length of service used in the gratuity calculation.
Is unused annual leave included in my gratuity?
No. Unused annual leave is a separate final-settlement entitlement and should be paid alongside gratuity, not included within it.
Does this calculator apply to all UAE free zones?
It applies the standard federal formula, which most free zones follow, but some maintain their own specific regulations — confirm with your free zone authority if you're unsure.
What happens to my gratuity after exactly 5 years of service?
Your first five years are calculated at 21 days per year, and only years beyond the fifth are calculated at the higher 30-day rate.
Can my employer withhold my gratuity due to a dispute?
Generally no — an employer cannot withhold gratuity simply because of an ongoing dispute or dissatisfaction with performance; unresolved disputes can be raised with the Ministry of Human Resources and Emiratisation (MOHRE).
How soon must gratuity be paid after my last working day?
Employers are generally required to settle final wages and gratuity within a set number of days after the contract ends — check current MOHRE guidance for the exact timeframe.
Is this calculator legally binding?
No. This tool provides an estimate for general guidance only and is not a substitute for advice from MOHRE or a qualified legal professional.
Is it free to use?
Yes, the Gratuity Calculator is free, with no signup required.
Does it work on mobile?
Yes. The calculator and results are fully responsive and work well on phones and tablets.
Estimate Your Gratuity Instantly
Enter your employment dates and basic salary, and see your estimated end-of-service benefit in seconds.