What this gratuity calculator does
End of service gratuity is the lump sum your employer owes you when your job in the UAE private sector ends. For most expatriate employees it is the nearest thing to a pension, and it is worked out from just two facts: your basic salary and how long you stayed.
This calculator applies the gratuity rules of the UAE Labour Law, the rules MOHRE enforces for private sector employers. It does not stop at a single number. It prints a line for every year you worked, so you can see where the total comes from and put it next to the final settlement your employer prepares.
How to use the calculator
- Enter your basic salaryUse the basic monthly figure from your contract or latest payslip, not your total package.
- Pick your contract typeLimited means a fixed-term contract, which is what almost everyone has today. Unlimited is for older open-ended contracts.
- Choose how the job endedSelect resignation if you left, or termination if your employer ended the contract.
- Add your working datesYour first working day, and your last working day at the end of your notice period.
- Read your slipCheck the total and the year-wise breakdown, then copy the total or download it as a PDF.
Still employed? Enter today's date, or the day you plan to leave, as the last working day to see what you have built up so far.
The UAE gratuity formula
Gratuity is based on your last basic salary. One day of pay is the monthly basic salary divided by 30.
Year 6 onwards: 30 days of basic pay for each year
The calculator walks through your service one year at a time, starting on your first working day. A complete year earns the full yearly amount. A part year at the end is counted in proportion to the days worked. Two legal limits are then applied: nothing is due until you have completed one full year, and the total stops at two years of basic salary.
Worked example
Basic salary AED 8,000, seven complete years of service:
- Each of the first five years: 8,000 ÷ 30 × 21 = AED 5,600. Five years: AED 28,000.
- Years six and seven: AED 8,000 each. Two years: AED 16,000.
- Total gratuity: AED 44,000.
The arithmetic is explained step by step, including part years, in how to calculate gratuity in the UAE.
Gratuity for 1 to 10 years of service
Figures in dirhams for complete years on today's standard scale.
| Years of service | Basic AED 3,000 | Basic AED 5,000 | Basic AED 8,000 | Basic AED 10,000 |
|---|---|---|---|---|
| 1 | 2,100 | 3,500 | 5,600 | 7,000 |
| 2 | 4,200 | 7,000 | 11,200 | 14,000 |
| 3 | 6,300 | 10,500 | 16,800 | 21,000 |
| 4 | 8,400 | 14,000 | 22,400 | 28,000 |
| 5 | 10,500 | 17,500 | 28,000 | 35,000 |
| 6 | 13,500 | 22,500 | 36,000 | 45,000 |
| 7 | 16,500 | 27,500 | 44,000 | 55,000 |
| 8 | 19,500 | 32,500 | 52,000 | 65,000 |
| 9 | 22,500 | 37,500 | 60,000 | 75,000 |
| 10 | 25,500 | 42,500 | 68,000 | 85,000 |
The gratuity chart covers every year up to 30 and recalculates for your own salary.
Who gets gratuity
- You are a foreign employee working full time in the UAE private sector.
- You have completed at least one year of continuous service with your employer.
- Your employment has ended, whether by resignation, termination or the end of your contract.
Part-time and flexible work patterns earn gratuity in proportion to the hours worked. UAE nationals are covered by the national pension system in place of gratuity.
Basic salary: the figure that decides everything
Gratuity is calculated on basic salary only. Housing, transport and other allowances are left out, however large they are. Two people on the same AED 10,000 package can be owed very different amounts if one has a basic of AED 4,000 and the other AED 7,000.
It is your last basic salary that counts, applied to all your years. Check the basic figure on your registered contract before you rely on any estimate. Our guide to which salary counts for gratuity explains what to look for.
Resigning or being terminated
Under the current law the amount is the same either way. Once you have a year of service, you are paid on the full scale whether you resign, your contract runs out or your employer ends it. The one-third and two-thirds reductions for resigning early belonged to the previous law.
What resigning can affect is your notice. Leave without working it and you may owe your employer pay for the notice period. See gratuity on resignation.
Limited and unlimited contracts
The current UAE Labour Law, Federal Decree-Law No. 33 of 2021, uses fixed-term contracts only, and employers were required to move staff off the older unlimited contracts. If your contract was signed or renewed under the current law, choose Limited.
The Unlimited option is there for people checking service under an old open-ended contract. If you were terminated, the full scale applies. If you resigned, the calculator applies a reduced year-by-year scale modelled on the older rules:
| Service year | Amount counted for that year |
|---|---|
| Years 1 and 2 | One third of 21 days of basic salary |
| Years 3 and 4 | Two thirds of 21 days of basic salary |
| Year 5 onwards | 30 days of basic salary |
Treat that as a cautious estimate. Under the older rules the reduction depended on your total length of service and stopped applying once service passed five years. Our guide to gratuity for unlimited contracts explains the difference.
Part years and unpaid leave
After your first year, extra months and days are paid in proportion. Four years and six months is paid as four and a half years.
Days of unpaid absence are not counted as service. The calculator works from your dates alone, so if you took a long stretch of unpaid leave, expect your employer's figure to be a little lower than the one on your slip.
The two-year maximum
However long you have worked, total gratuity cannot be more than two years of basic salary. On the standard scale that ceiling is reached after a little more than 25 years. If your year-wise amounts add up to more, the calculator reduces the total to the limit and shows the adjustment as its own line.
When gratuity is paid and what else you are owed
Your employer must pay your end of service dues within 14 days of the end of your contract. Gratuity is one line of your final settlement, which normally also includes:
- Salary up to your last working day
- Payment for annual leave you earned but did not take
- Notice pay, where it applies
- The cost of your journey home, where the law or your contract provides for it
Our guide to the final settlement goes through each item and how to check it.
Can gratuity be reduced or refused?
Once you have completed a year of service, the current law does not take gratuity away because of the way the job ended. Your employer can only deduct amounts you owe under the law or under a court judgment.
A lower figure than you expected usually has an ordinary explanation: a smaller basic salary on record, unpaid leave removed from your service, or a different last working day. Ask for a written breakdown before you sign anything.
Dubai, Abu Dhabi, Sharjah and the free zones
There is no separate gratuity calculator for Dubai or Abu Dhabi, because the rule is federal. The same Labour Law applies in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, and in most free zones, including JAFZA.
The exceptions are the two financial free zones, DIFC and ADGM, which have their own employment laws. Domestic workers such as housemaids, nannies and private drivers also come under a separate law, explained in our domestic worker gratuity guide. This calculator does not apply to either group.
If your employer does not pay
Ask in writing first, using our sample letter. If the 14 days pass without payment, you can file a complaint with MOHRE through its website, app or call centre. Filing is free and you do not need a lawyer. The steps are in our guide to filing a labour complaint.
Common mistakes to avoid
- Entering your total salary. Allowances are not part of the calculation, so the full package overstates the result.
- Using the wrong dates. Service starts on your first working day, not the day your visa was stamped, and runs to the end of your notice period.
- Assuming every year becomes 30 days after five years. The first five years stay at 21 days each.
- Forgetting unpaid leave. Long unpaid absences shorten the service your employer counts.
- Treating the estimate as final. Your employer's payroll records decide the amount. Ask for the calculation and compare it with your slip.
Guides worth reading next
- How to calculate gratuityThe formula by hand, with a full example
- Gratuity chart1 to 30 years for your own salary
- Gratuity on resignationWhat you get if you resign
- Final settlementEverything you are owed on leaving
- Which salary countsBasic salary and allowances
- Labour complaintWhat to do when you are not paid
Frequently asked questions
Is gratuity calculated on basic salary or total salary?
Only on your last basic salary. Housing, transport and other allowances are not included. Check your contract or payslip for the basic amount.
Do I get gratuity if I worked less than one year?
No. The law requires at least one full year of continuous service, so the calculator shows AED 0 until your service reaches one year.
Do I get gratuity if I resign?
Yes. Under the current UAE Labour Law, employees who complete at least one year of service are entitled to gratuity whether they resign or are terminated.
How many days of pay do I get for each year?
21 days of basic salary for each of your first five years and 30 days for each year after the fifth.
How much gratuity do I get after 5 years?
105 days of basic pay, which is three and a half months of basic salary. On a basic salary of AED 5,000 that is AED 17,500.
Is there a maximum gratuity amount?
Yes. Total gratuity cannot be more than two years of your basic salary.
When must my employer pay gratuity?
All end of service dues must be paid within 14 days of the end of your contract.
Is gratuity taxed in the UAE?
The UAE does not charge personal income tax on salaries or gratuity. Your home country may tax money you bring back, so check its rules.
Can I use the calculator while I am still working?
Yes. Enter today's date or your planned last day to see what you have built up so far. Nothing is payable until the job actually ends.
Does the calculator work offline or as an app?
Yes. After your first visit it works without a connection, and you can add it to your phone's home screen from your browser menu.
Is gratuity the same as a tip?
No. In UAE employment, gratuity means the end of service benefit an employer pays when a job ends. It has nothing to do with tipping in restaurants or hotels.
Is this the official MOHRE calculator?
No. This is an independent website and is not connected to MOHRE or any government body. It gives estimates for general information only.