UAE Gratuity Calculator
Estimate your UAE end-of-service gratuity using your basic salary, first working day, last working day, unpaid absence and work arrangement. The standard private-sector formula is simple: after one year of continuous service, calculate 21 days of basic wage per year for the first five years and 30 days per year after five years.
This calculator is for guidance only. It is not a final legal settlement, and special free-zone rules, pension schemes, employer policies or court judgments can change the final amount.
Standard UAE end-of-service gratuity begins after one year of continuous service.
Use the last monthly basic salary. Do not include housing, transport or other allowances.
21 days per year for the first five years, then 30 days per year after five years.
The total end-of-service benefit should not exceed two years' wage.
Calculate UAE Gratuity
Enter the details below. Use basic salary, not gross salary.
Note: This estimator follows the standard private-sector calculation pattern. Confirm your final entitlement with your employer, MOHRE, free-zone authority or legal advisor.
Your Estimate
Enter your salary and service dates to calculate the estimate.
UAE Gratuity Formula
The standard UAE end-of-service gratuity calculation for a full-time foreign worker is based on the last monthly basic salary. A worker with one year or more of continuous service receives a benefit for completed service and proportional parts of the year.
\[ \text{Daily Basic Wage} = \frac{\text{Monthly Basic Salary}}{30} \]
\[ \text{First 5 Years} = \text{Daily Basic Wage} \times 21 \times \text{Years up to 5} \]
\[ \text{After 5 Years} = \text{Daily Basic Wage} \times 30 \times \text{Years after 5} \]
The total estimated gratuity is then adjusted for unpaid absence, part-time ratio if relevant, and the applicable legal cap. This calculator uses a cap estimate of 24 months of basic salary for conservative calculator display, but the final legal cap should be confirmed against the applicable wage definition and authority guidance.
Important: The previous version of this page used older limited/unlimited resignation reduction logic. The current standard calculator does not reduce gratuity based on resignation vs termination. It estimates the 21/30-day statutory formula after one year of continuous service.
Quick UAE Gratuity Reference Table
Use this table to check the logic before using the calculator.
| Service period | Gratuity basis | Calculator treatment |
|---|---|---|
| Less than 1 year | No standard gratuity entitlement | Shows AED 0 and marks ineligible |
| 1 to 5 years | 21 days of basic wage per year | Prorated by exact eligible service days |
| More than 5 years | 21 days for first 5 years, then 30 days per extra year | Splits the calculation into first-five and after-five amounts |
| Part-time or job-sharing | Full-time gratuity multiplied by hours ratio | Uses contract annual hours ÷ full-time annual hours |
| Unpaid absence | Excluded from service term | Subtracts unpaid days before calculating service |
Part-Time and Job-Sharing Gratuity
For part-time or job-sharing workers, the gratuity value is adjusted using the ratio between contracted annual working hours and full-time annual working hours. This page defaults to 2,080 full-time hours per year, but you can edit that value if the contract or employer uses a different full-time benchmark.
\[ \text{Part-time ratio} = \frac{\text{Contract hours per year}}{\text{Full-time hours per year}} \]
\[ \text{Part-time gratuity} = \text{Full-time gratuity} \times \text{Part-time ratio} \]
Example: if the full-time gratuity estimate is AED 20,000 and the employee works 1,040 hours per year compared with a 2,080-hour full-time benchmark, the part-time ratio is 50%, so the estimated part-time gratuity is AED 10,000.
Worked Examples
Example 1: 3 years of service
Basic salary: AED 8,000. Service: 3 years. Daily basic wage = AED 8,000 ÷ 30 = AED 266.67.
\[ 266.67 \times 21 \times 3 = 16{,}800 \]
Estimated gratuity: AED 16,800
Example 2: 7 years of service
Basic salary: AED 10,000. Service: 7 years. Daily basic wage = AED 333.33. First five years use 21 days per year; the extra two years use 30 days per year.
\[ (333.33 \times 21 \times 5) + (333.33 \times 30 \times 2) = 55{,}000 \]
Estimated gratuity: AED 55,000
What This Calculator Does Not Cover
- Free-zone rules that use different employment regulations or funded savings schemes.
- UAE nationals whose end-of-service treatment follows pension and social-security legislation.
- Employer deductions, court judgments, unpaid loans or other amounts legally deductible from end-of-service benefits.
- Final settlement items such as unused annual leave, unpaid salary, notice-period amounts or allowances.
- Any special contractual benefit that is more favorable than the statutory minimum.
UAE Gratuity FAQs
How is UAE gratuity calculated?
For the standard private-sector formula, calculate daily basic wage as monthly basic salary divided by 30. Then use 21 days of basic wage for each of the first five years and 30 days of basic wage for each year after five years.
Is gratuity calculated on basic salary or total salary?
It is calculated on the last basic wage. Housing, transport, utilities, furniture and similar allowances are not included in the standard gratuity base.
Do I get gratuity if I worked less than one year?
Under the standard private-sector rule, a foreign worker must complete at least one year of continuous service to be entitled to end-of-service gratuity.
Does resignation reduce gratuity in the UAE?
This calculator does not apply the older unlimited-contract resignation reductions. It estimates the standard 21/30-day formula after one year of service.
Are unpaid absence days included?
No. Unpaid days of absence are excluded from the service period used for end-of-service benefit calculation.
When must gratuity be paid?
The UAE government portal states that employers must pay outstanding wages, other entitlements and gratuity within 14 days after contract termination.
Disclaimer: This calculator is an educational estimator based on standard UAE private-sector gratuity rules. It is not legal advice and should not be treated as a final settlement certificate. Confirm your final entitlement with your employer, MOHRE, the relevant free-zone authority or a qualified UAE legal professional.