Finance calculators

UAE Gratuity Calculator

Updated Sep 17, 2026 By Infinity Calculator
Rate Formulas
Employment Details
Your official first day of employment as stated in your contract.
Your final day of service, including any notice period actually worked.
Use your basic salary only — do not include allowances, bonuses, or other benefits.
Enter the total number of unpaid absence days. These will be deducted from your total service period.
A Limited Contract has a fixed end date agreed upon at signing. An Unlimited Contract has no fixed end date.
This affects your entitlement percentage under UAE Labour Law.

Your Gratuity Estimate

Result Summary
Approximate Gratuity Entitlement
AED 0.00
Total Service Period
0 years, 0 months, 0 days
Daily Wage (Basic ÷ 30)
AED 0.00
Service Used in Formula
0.0000 years
Payable Service Days
0 days
Statutory Maximum (24 × basic)
AED 0.00
Step-by-Step Solution
Entitlement Growth with Length of Service
Your Amount vs. Statutory Limits
Entitlement at Each Service Milestone
Years of Service 21-Day Tier 30-Day Tier Entitlement Factor Gratuity Payable

Introduction

When you leave a job in the UAE, your employer may owe you an end-of-service payment. This is called gratuity. It is a lump sum of money based on how long you worked and your basic salary. The UAE Gratuity Calculator above works out that amount from your dates and your pay.

Enter your first working day, your last working day, and your basic monthly salary. The calculator counts your days of service, finds your daily wage, and applies the rules from UAE Labour Law (Federal Decree-Law No. 33 of 2021).

Here is how the law works in simple terms:

  • You need at least 1 full year of service to get gratuity.
  • For each of the first 5 years, you earn 21 days of basic pay.
  • For each year after 5 years, you earn 30 days of basic pay.
  • Your total payout cannot be more than 2 years' basic salary.

The tool shows your total in AED, a full step-by-step breakdown of the math, charts, and a table of what you would get at each year of service. You can also add unpaid absence days if you had any, since those are taken off your service time.

Use this calculator to check your payout before you resign, plan your next move, or make sure your employer paid you the right amount. Results are an estimate to help you understand your rights, not legal advice.

How to use our UAE Gratuity Calculator

Enter your job dates, your basic salary, and a few details about your contract. The calculator shows your end of service gratuity in AED, your total service period, your daily wage, and a step-by-step breakdown of the math.

First Working Day: Pick the date you started the job. Use the start date written in your work contract.

Last Working Day: Pick your final day at work. Include any notice period you actually worked.

Basic Monthly Salary (AED): Type your basic pay per month. Leave out housing, transport, bonuses, and all other allowances, because UAE gratuity is based on basic salary only.

Days Absent Without Pay (Optional): Type the number of unpaid leave days you took. The tool takes these days off your service time. Leave it at 0 if you had none.

Contract Type: Choose Limited if your contract has a set end date. Choose Unlimited if it does not.

Reason for Leaving: Choose Resignation, Termination by Employer, or Mutual Agreement. Under the current UAE Labour Law, you get full gratuity in all three cases after one year of service.

Click Calculate Gratuity to see your result, charts, and year-by-year table. Click Reset to start again with the sample numbers.

What Is UAE End-of-Service Gratuity?

Gratuity is a one-time payment your employer owes you when you leave your job in the UAE. It is like a thank-you payment for the years you worked. It is set by UAE Labour Law (Federal Decree-Law No. 33 of 2021), so it is a right, not a gift.

Who Can Get Gratuity

You must finish at least 1 full year of non-stop work with the same employer. If you leave before one year, you get nothing. Unpaid absence days do not count as service, so they are taken off your total.

How Gratuity Is Worked Out

The math uses your basic salary only. Do not count housing, transport, phone, bonus, or any other allowance. Your daily wage is your basic monthly salary divided by 30.

  • First 5 years: 21 days of basic pay for each year.
  • After 5 years: 30 days of basic pay for each extra year.
  • Part years count too. Extra months and days are paid pro-rata (a fair share), not rounded down.
  • Maximum payout: your total gratuity can never be more than 2 years of basic salary.

Quick Example

If your basic salary is AED 10,000, your daily wage is AED 333.33. After 7 years you get 21 days × 5 years (AED 35,000) plus 30 days × 2 years (AED 20,000) = AED 55,000.

Does Quitting Cut Your Payment?

No. Under the old law, workers who resigned from an unlimited contract lost one-third or two-thirds of their gratuity. That rule was removed in February 2022. Now you get your full gratuity whether you resign, are let go, or leave by mutual agreement. The old "limited" and "unlimited" contract types were also replaced by fixed-term contracts.

Good to Know

  • Gratuity is paid within 14 days of your last working day.
  • Unused annual leave, notice pay, and a flight home are paid separately.
  • Gratuity can be lost if you are fired for serious misconduct under Article 44.
  • Some free zones, like DIFC and ADGM, use their own savings plans instead.
  • There is no income tax in the UAE, so your gratuity is paid in full.

This tool gives an estimate based on the main federal rules. Your contract, free zone rules, or a company policy that pays more may change the final figure.


Formulas used

Calendar service days (inclusive)
\text{Service days} = (\text{End date} - \text{Start date}) + 1
Payable service days after unpaid absence
\text{Payable days} = \text{Service days} - \text{Unpaid absence days}
Years of service (prorated)
\text{Years} = \frac{\text{Payable days}}{365}
Daily wage from basic monthly salary
\text{Daily wage} = \frac{\text{Basic monthly salary}}{30}
Gratuity before cap (21-day and 30-day tiers)
G = \begin{cases} 0, & \text{Years} < 1 \\ \text{Daily wage} \times 21 \times \text{Years}, & 1 \le \text{Years} \le 5 \\ \text{Daily wage} \times 21 \times 5 + \text{Daily wage} \times 30 \times (\text{Years} - 5), & \text{Years} > 5 \end{cases}
Statutory maximum (24 months of basic salary)
\text{Cap} = 24 \times \text{Basic monthly salary}
Final gratuity payable
\text{Gratuity} = \min(G,\ \text{Cap})

Frequently asked questions

Does the probation period count toward gratuity in the UAE?

Yes. If you pass probation and keep working, those months count as part of your total service.

But if you leave during probation, or before you finish one full year, you get no gratuity at all. One year of non-stop service is the minimum.

Which basic salary is used if my pay changed over the years?

Your last basic salary is used. That is the basic wage you were paid on your final working day.

So a raise near the end of your job raises your whole gratuity, not just the last year. Only basic pay counts. Housing, transport, and bonuses are left out.

How much gratuity do I get after 5 years in the UAE?

Five years earns 105 days of basic pay (21 days × 5).

  • Basic AED 5,000 → daily wage AED 166.67 → gratuity AED 17,500
  • Basic AED 10,000 → daily wage AED 333.33 → gratuity AED 35,000
  • Basic AED 20,000 → daily wage AED 666.67 → gratuity AED 70,000

After year 5, each extra year is worth 30 days instead of 21.

Does my notice period count toward my service for gratuity?

Yes. If you work your notice period, those days are part of your service and add to your gratuity.

Notice is usually 30 to 90 days. Your last working day is the day your notice ends, not the day you handed in your resignation.

Can an employer refuse to pay gratuity in the UAE?

Only in one case: if you are fired for serious misconduct listed in Article 44 of the Labour Law. Examples include fraud, violence at work, or being drunk on duty.

In every other case (you quit, you are let go, or the contract ends), your employer must pay your full gratuity after one year of service.

What can I do if my employer does not pay my gratuity?

File a complaint with MOHRE (the Ministry of Human Resources and Emiratisation). You can call 600 590 000 or use the MOHRE app or website. It is free.

MOHRE tries to settle it first. If that fails, the case is sent to the Labour Court. Do it soon. Claims have a one-year time limit from the date the money was due.

Does sick leave count as service for gratuity?

Paid sick leave counts as normal service. So do paid annual leave and public holidays.

Only unpaid days are cut from your service time. That includes unpaid sick days and unpaid personal leave.

Do part-time workers get gratuity in the UAE?

Yes. Part-time staff on a legal part-time permit get gratuity after one year, but it is scaled down.

The payout is based on the share of hours you work compared to a full-time job. If you work half the hours, you get about half the gratuity a full-time worker would get.

Do domestic workers like maids and drivers get gratuity?

Yes, but under a different law (Federal Decree-Law No. 9 of 2022). Domestic workers get 14 days of pay for each year of service after completing one full year.

That is less than the 21 days office and company staff get under the main Labour Law.

Does my gratuity start over if I change employers in the UAE?

Yes. Your service clock resets to zero with each new employer. Years with an old company do not move to the new one.

Your old employer pays gratuity for the time you worked there. Then you must complete one full year with the new company before you earn anything from them.

What is the UAE savings scheme that replaces gratuity?

It is the Alternative End-of-Service Benefits Scheme, started in 2023. Instead of paying one lump sum at the end, the employer puts money into an approved investment fund every month for you.

It is voluntary for most companies. DIFC has its own version called DEWS, which is required there. Under these plans your savings can grow, and the money stays yours even if you change jobs.

Is gratuity paid to the family if a worker dies?

Yes. If a worker dies, the gratuity and all other unpaid dues go to the legal heirs or the named beneficiary.

The employer must pay within the normal time limit. Families usually need a death certificate and a court paper naming the heirs.

Is the 21 days in the gratuity formula working days or calendar days?

It means 21 days of pay, not 21 shifts. The law sets the daily wage as your basic monthly salary divided by 30.

So 21 days of pay equals 70% of one month's basic salary, and 30 days equals one full month of basic salary.

Can my employer take money out of my gratuity?

Yes, but only for money you truly owe, such as a staff loan, a salary advance, or damage you caused that is proven.

The employer must show proof of the debt. They cannot cut your gratuity just because you resigned or gave short notice.