UAE Gratuity Calculator: Your Guide to End-of-Service Benefits
If you work in the UAE, you’re likely entitled to a payment called gratuity (UAE Gratuity Calculator) when your job ends. This applies whether you’re on a fixed-term (limited) or open-ended (unlimited) contract, as long as you meet certain conditions. This guide breaks down everything you need to know about gratuity in simple terms, including how it’s calculated, who qualifies, and helpful tools to figure out your payout.
What is Gratuity in the UAE?
Gratuity is a one-time payment employers give to workers when they leave a job. It’s a way to thank you for your service and help you financially as you move on. The amount depends on:
Your basic salary (not including extras like housing or transport allowances).
How long you’ve worked for the company.
Whether you have a limited or unlimited contract.
Important: You won’t get gratuity if you’ve worked less than one year.
Why Does the Gratuity Calculator Matter?
A gratuity calculator helps you figure out exactly how much money you’re owed when you leave your job. It’s great for:
Using a calculator saves time and keeps things clear for everyone.
UAE Labour Law on Gratuity (2025 Rules)
Gratuity is covered by UAE Federal Decree-Law No. 33 of 2021. Here are the key points:
Who qualifies? You need at least one year of continuous work with the same employer.
Who doesn’t qualify? If you’re fired for serious misconduct (listed in Article 44), you get nothing.
When is it paid? Your employer must pay within 14 days after your contract ends.
How to Calculate Gratuity
The formula for gratuity is straightforward:
Gratuity = (21 days’ basic salary × years worked for the first 5 years) + (30 days’ basic salary × years worked after 5 years)
For 1–5 years of work: You get 21 days of your basic salary for each year.
For 6+ years: You get 30 days of your basic salary for each year after the 5th.
Maximum limit: Your gratuity can’t be more than two years’ worth of your basic salary.
Let’s say your basic salary is AED 10,000, and you worked for 7 years:
First 5 years:
21 days × AED 10,000 ÷ 30 days × 5 years = AED 35,000
Next 2 years:
30 days × AED 10,000 ÷ 30 days × 2 years = AED 20,000
Total Gratuity:
AED 35,000 + AED 20,000 = AED 55,000
Gratuity for Limited vs. Unlimited Contracts
The type of contract you have affects your gratuity:
Limited Contract (Fixed-Term)
Unlimited Contract (Open-Ended)
If you resign after:
1–3 years: You get 1/3 of the full gratuity.
3–5 years: You get 2/3 of the full gratuity.
5+ years: You get the full gratuity.
If you quit your job:
Gratuity for Domestic Workers
Domestic workers in the UAE also get gratuity after one year of service. The calculation is similar, but the contract terms might differ based on what you agreed with your employer.
Using Online Gratuity Calculators
You don’t need to do the math yourself. Online gratuity calculators make it easy. Just enter:
Some good options include:
When You Don’t Get Gratuity
You won’t receive gratuity if:
You worked less than one year.
You were fired for serious misconduct (check Article 44).
You’re still on probation.
Is Gratuity Taxed in the UAE?
Good news: The UAE doesn’t tax salaries or gratuity. But if you send the money to your home country, check if taxes apply there.
Common Questions About Gratuity
Is gratuity required by law?
Yes, if you’ve worked at least one year, it’s mandatory under UAE law.
Is gratuity based on my full salary?
No, only your basic salary counts, not allowances like transport or bonuses.
What if my employer won’t pay?
You can file a complaint with MOHRE for help.
How soon do I get paid?
Your employer must pay within 14 days of your job ending.
Are free zone employees different?
Some free zones have their own rules, but most follow similar gratuity guidelines.
The UAE gratuity system is a great benefit for workers, and using a calculator makes it easy to know what you’re owed. Keep track of your basic salary, contract type, and years worked to stay prepared. If you run into problems, MOHRE is there to support you.
