A Gratuity Calculator UAE is an online tool designed to help employees working in the United Arab Emirates estimate their end-of-service benefits, also known as gratuity. According to UAE Labour Law, employees who complete at least one year of continuous service with an employer are entitled to gratuity pay upon termination or resignation. 

The gratuity amount depends on factors such as the length of service, type of contract (limited or unlimited), basic salary, and reason for leaving the job. This calculator simplifies the process by providing a quick and accurate estimate based on the user’s inputs, ensuring transparency and clarity in financial planning for expatriates and local workers alike.

What Is a Gratuity Calculator in the UAE?

A Gratuity Calculator UAE helps employees estimate their end-of-service benefits. These benefits are based on the UAE Labour Law and depend on the type of contract, years of service, and final salary.

Why You Need an Online Gratuity Calculator

An online gratuity calculator provides fast and accurate estimates. It simplifies complex labor laws and gives clear answers about your final entitlement. Many professionals use it before planning job changes or resignations.

Key Benefits of Using a Gratuity Calculator

• Quick and accurate results
  
  

• Complies with UAE Labour Law
  
  

• Easy to use and accessible 24/7
  
  

• No legal knowledge required
  
  

How Gratuity Is Calculated in the UAE

The gratuity amount depends on:

• Type of contract (Limited or Unlimited)
  
  

• Length of continuous service
  
  

• Basic last drawn salary
  
  

• Reason for termination or resignation
  
  

For Limited Contracts

• Less than 1 year: No gratuity
  
  

• 1–5 years: 21 days’ basic salary per year
  
  

• Over 5 years: 30 days’ salary per year for each year beyond 5 years
  
  

For Unlimited Contracts

• Less than 1 year: No gratuity
  
  

• 1–3 years: One-third of 21 days’ salary per year
  
  

• 3–5 years: Two-thirds of 21 days’ salary per year
  
  

• Over 5 years: Full 21 days’ salary per year (plus 30 days for extra years)
  
  

Step-by-Step: How to Use an Online Gratuity Calculator UAE

1. Enter your last basic salary.
   
   

2. Select your contract type.
   
   

3. Add your joining and last working date.
   
   

4. Submit the data to get results.
   
   

The calculator instantly provides your gratuity amount with a breakdown.

Who Can Use a UAE Gratuity Calculator?

• Private sector employees
  
  

• Government employees with contracts
  
  

• HR professionals and business owners
  
  

• Expats planning to resign or retire
  
  

Anyone under UAE Labour Law can use the calculator. It is especially useful for expats unsure of their benefits.

Gratuity Calculation Example

Imagine your last basic salary is AED 10,000. You worked for 6 years under a limited contract.
Your gratuity will be:

• First 5 years: 21 days x 5 = 105 days
  
  

• Sixth year: 30 days
  
  

• Total: 135 days
  
  

• AED 10,000 ÷ 30 x 135 = AED 45,000
  
  

Free and Paid Gratuity Calculator Tools

Several websites in the UAE offer this tool for free. Some include added features like:

• Exportable reports
  
  

• Tax deduction simulations
  
  

• Custom business tools
  
  

Popular options include Ministry of Labour portals, HR websites, and company apps.

When Should You Use a Gratuity Calculator?

• Before resigning
  
  

• After receiving a job offer
  
  

• While reviewing a new contract
  
  

• When restructuring your career plans
  
  

Regular use keeps you informed and helps in negotiations.

Mistakes to Avoid in Gratuity Calculations

• Entering gross salary instead of basic
  
  

• Choosing the wrong contract type
  
  

• Not including complete years of service
  
  

• Misunderstanding legal clauses
  
  

An accurate calculator eliminates these errors.

Final Thoughts

A Gratuity Calculator UAE is an essential tool for any employee under UAE labor law. It ensures transparency, helps with planning, and gives peace of mind during job transitions. Use an online gratuity calculator today and stay informed about your entitlements.