Online UAE Gratuity Calculator Instant
End-of-service and final settlement calculator based on Article 51 of UAE Federal Labour Law No. 33 of 2021, built for employees, HR teams, and anyone planning their next move.
- ✓ Step-by-step estimate
- ✓ Mainland & Freezone selection
- ✓ 100% MOHRE accurate
What Is an Online Gratuity Calculator in the UAE?
Also known as an end-of-service calculator, it turns your salary and service dates into the exact figure your employer owes you — no spreadsheets required.
What Is Gratuity in the UAE?
Gratuity is a mandatory end-of-service payout that supports private-sector employees as they plan their next move — switching jobs or relocating.
Your Legal Right
Under Article 51 of UAE Labour Federal Law No. 33 of 2021, gratuity applies to every eligible private-sector employee — it isn’t optional for employers.
Calculated on Basic Salary
Gratuity is worked out on basic salary alone, excluding housing, transport, and other allowances in your total package.
Based on Service Period
The longer you work, the larger your entitlement grows. It accrues across your employment and pays out as one lump sum on your last day.
Private Sector Only
Only private-sector expatriate employees qualify. UAE nationals and government workers are covered by separate pension schemes.
Capped at 24 Months
Your gratuity is capped at 24 months’ basic salary, no matter how many years you’ve worked — a hard limit set by UAE Labour Law.
Completely Tax-Free
Gratuity in the UAE is 100% tax-free. The full calculated amount is paid directly to you, with no deductions applied.
How to Use the Online UAE Gratuity Calculator
Five easy steps — no calculations, spreadsheets, or guesswork. Just an accurate figure in seconds.
Provide your basic salary
Use only the basic salary stated in your contract — housing, transport, and other allowances don’t count.
Select your contract type
Since February 2023, only limited contracts are issued. Joined earlier? Check if you’re still on a legacy unlimited contract.
Choose your reason for leaving
Resignation or termination? On legacy unlimited contracts, early resignation can reduce your entitlement.
Enter your service period
From your joining date to your last working day. Even a few extra months add a measurable amount.
Get your results instantly
Your figure is calculated per the correct service bracket, capped at 24 months’ basic salary.
How Gratuity Is Calculated
Every calculation starts with one year’s entitlement, then multiplies it by your actual years of service.
Simplified for clarity — exact rates by contract type and service length are in the tables below.
Limited Contract
| Service period | Formula |
|---|---|
| 1 – 5 years (any reason) | (Salary ÷ 30) × 21 × Years |
| 5+ years (any reason) | (Salary ÷ 30) × 30 × Extra years |
| Resign or terminate | Same rate applies |
Unlimited Contract
| Service period | Formula |
|---|---|
| Resign: 1 – 3 years | ⅓ × (Salary ÷ 30) × 21 × Years |
| Resign: 3 – 5 years | ⅔ × (Salary ÷ 30) × 21 × Years |
| Resign: 5+ years | Full rate — 21, then 30 days |
| Terminated: 1 – 5 years | (Salary ÷ 30) × 21 × Years |
| Terminated: 5+ years | 21 days, then 30 days/year |
Who Is Eligible for Gratuity in the UAE?
Not every employee qualifies automatically. Here’s what determines your entitlement.
Minimum 1 year of service
Complete at least one year and you’re eligible. End your job before that mark and your final settlement won’t include gratuity.
Expatriate employees only
Private-sector expatriates under MOHRE-regulated contracts qualify. UAE nationals are covered by the GPSSA pension scheme instead.
Dismissal for misconduct
Dismissal under Article 120 — theft, fraud, or serious violations — allows an employer to legally withhold gratuity.
Serving your notice period
Resigning employees must serve the contractual notice period, typically 30–90 days. Leaving without notice can forfeit your gratuity rights.
Maximum end-of-service benefit
Total gratuity is capped at 24 months’ basic salary — a statutory limit with no exceptions.
Basic Salary vs. Total Salary
Gratuity is calculated on basic salary alone — check your contract closely, since this distinction can significantly change your final figure.
Included in Gratuity Base
- Basic salary, as stated in your contract
- Fixed monthly basic pay component
- Contractually defined basic figure
Excluded from Gratuity Base
- Housing or accommodation allowance
- Transportation allowance
- Food or utilities allowance
- Annual or performance bonuses
- Commission or sales incentives
- Medical or education allowances
Resignation vs. Termination
How you leave affects your entitlement, and the rules differ by contract type. Under 1 year of service there’s no gratuity, regardless of how employment ends. Between 1–3 years, resigning on an unlimited contract pays a third of the normal rate; termination or a limited contract pays in full. Between 3–5 years, resigning pays two-thirds, while termination or a limited contract still pays in full. Past 5 years, you receive the full gratuity no matter how you leave.
| Service period | Resign — Unlimited | Terminated — Unlimited | Any reason — Limited |
|---|---|---|---|
| Less than 1 year | No gratuity | No gratuity | No gratuity |
| 1 – 3 years | ⅓ of 21 days/year | 21 days/year | 21 days/year |
| 3 – 5 years | ⅔ of 21 days/year | 21 days/year | 21 days/year |
| 5+ years | Full — 21 days, then 30 | Full — 21 days, then 30 | Full — 21 days, then 30 |
Frequently Asked Questions
Is gratuity calculated on basic salary or gross salary?
Gratuity is calculated only on your basic salary — not your gross or total compensation — excluding housing, transport, and other allowances. If your total package is AED 15,000 but your basic is AED 8,000, gratuity is based on AED 8,000 only. Always confirm the exact basic figure in your contract.
How are partial years of service calculated?
Partial years are calculated pro-rata. Three years and six months equals 3.5 years, so your gratuity would be Daily Wage × 21 × 3.5. Our calculator handles this automatically using the exact dates you enter.
Can I receive gratuity if I resign voluntarily?
Yes. Under the UAE Labour Law effective February 2022, employees who resign are entitled to full gratuity after completing one year of service. The old rules reducing gratuity for resignation no longer apply to contracts under the new law, though pre-2022 contracts may still follow the old rules for service before the conversion date.
Does the fixed-term vs. unlimited contract distinction still matter?
From February 2023, unlimited contracts were abolished and all new contracts are limited (fixed-term). The old resignation penalties — losing a third or two-thirds of gratuity for early resignation — no longer apply to new contracts.
Is gratuity taxable in the UAE?
No. Gratuity is completely tax-free in the UAE. The full calculated amount is paid directly to you with no deductions, making it one of the most valuable benefits of UAE employment.
What is Full & Final Settlement?
Your Full & Final Settlement (FFS) is the total payment due on your last day: unpaid salary, gratuity, unused annual leave encashment, and notice pay where applicable, minus authorised deductions such as loans or salary advances, per Article 53 of the Labour Law.
What is the maximum amount of gratuity I can receive?
Your total gratuity is capped at 24 months (2 years) of your basic salary, regardless of total service years. This statutory limit applies without exception, no matter how long you’ve worked.
What if my employer refuses to pay gratuity?
File a complaint with MOHRE through their website, mobile app, or by calling 800-60. MOHRE will attempt mediation; if it’s unresolved within 14 days, the case moves to the Labour Court. Keep your employment contract, payslips, and calculation printout as evidence.
When must my employer pay gratuity?
Within 14 days of your last working day. If your employer misses this window, you can file a complaint with MOHRE — penalties for employers include fines, legal action, and possible trade licence suspension.
Are UAE nationals eligible for gratuity?
No. End-of-service gratuity under UAE Labour Law applies exclusively to expatriate private-sector employees. UAE nationals are enrolled in the GPSSA pension scheme instead.