UAE Gratuity Calculator

Common questions

How is end-of-service gratuity calculated in the UAE?

For the first five years of service, an employee earns 21 days of basic wage for each year. From the sixth year onward, that rises to 30 days of basic wage for each additional year. The total cannot exceed two years' basic salary. Gratuity is based on the basic wage only, not on the gross salary that includes allowances.

Do I use basic salary or total salary?

Gratuity is calculated on the basic salary alone. Housing, transport and other allowances are excluded. That is why this calculator asks for basic pay, not the full package.

When does an employee become eligible?

An employee must complete at least one continuous year of service to be entitled to gratuity. Below one year, no gratuity is due. Above one year, fractions of a year are paid on a pro-rata basis.

Does resigning reduce the gratuity?

Under the 2021 UAE Labour Law, all contracts are fixed-term and the same 21 and 30 day formula applies whether the employee resigns or is terminated. The old reductions for resignation under an unlimited contract no longer apply. Gratuity can still be forfeited for dismissal under Article 44.