Online Gratuity Calculator UAE Instant
Use our free UAE gratuity calculator to estimate your end-of-service and final settlement, based on Article 51 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. Built for employees, HR teams, and anyone planning their next move.
- ✓ Step-by-step estimate
- ✓ Mainland & Freezone selection
- ✓ Built on Article 51
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 an estimate of the end-of-service gratuity 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 Federal Decree-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 a clear estimate in seconds.
Provide your basic salary
Only your basic pay counts — allowances don’t.
Select your contract type
Fixed-term is standard since 2022, or pick legacy unlimited.
Choose your reason for leaving
Resignation or termination — this only matters for legacy unlimited contracts.
Enter your service period
Your joining date through to your last working day.
Get your results instantly
See your estimate, 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 |
Legacy Unlimited Contracts (service before conversion)
| 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 |
Unlimited contracts were phased out after the 2022 law. These reduced resignation rates apply only to legacy contracts and service periods that fall under the old rules.
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 of continuous service and you’re eligible. End your job before that mark and your final settlement won’t include gratuity.
Dismissal for serious misconduct
Dismissal for serious violations under Article 44 is treated separately and can affect your entitlements. Confirm your exact position with MOHRE or a labour advisor.
Serving your notice period
Resigning employees should serve the contractual notice period, typically 30–90 days. Leaving without notice can lead to deductions or claims by the employer.
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
Under the current law, the rate is the same whether you resign or are terminated, once you have completed one year of service. The reduced resignation rates (⅓ and ⅔) apply only to service under legacy unlimited contracts.
| Service period | Current fixed-term contracts | Legacy unlimited – resigned | Legacy unlimited – terminated |
|---|---|---|---|
| Less than 1 year | No gratuity | No gratuity | No gratuity |
| 1 – 3 years | 21 days/year | ⅓ of 21 days/year | 21 days/year |
| 3 – 5 years | 21 days/year | ⅔ of 21 days/year | 21 days/year |
| 5+ years | 21 days, then 30 | Full — 21 days, then 30 | Full — 21 days, then 30 |
Official UAE Gratuity Resources
Our calculator gives an estimate. For binding figures, rules, and complaints, use these official sources.
MOHRE — Ministry of Human Resources & Emiratisation
Official labour services, contract rules, and the channel for filing end-of-service complaints.
Visit mohre.gov.ae → UAE GovernmentThe UAE Government Portal
Official guidance on jobs, labour relations, and end-of-service benefits for UAE residents.
Visit u.ae → UAE LegislationUAE Legislation Portal
Read the full text of Federal Decree-Law No. 33 of 2021 and its executive regulations.
Visit uaelegislation.gov.ae → PensionsGPSSA — Pensions & Social Security
For UAE nationals, who are covered by pension schemes instead of end-of-service gratuity.
Visit gpssa.gov.ae → Free ZoneADGM
Employment rules for Abu Dhabi Global Market employees, which differ from Mainland.
Visit adgm.com → Free ZoneDIFC
Employment and DEWS workplace savings information for Dubai International Financial Centre.
Visit difc.ae →What Our Users Say
Feedback from people who used the calculator to plan their end-of-service.
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. Unpaid leave days are not counted as service.
Can I receive gratuity if I resign voluntarily?
Yes. Under the current law (in force since 2 February 2022), employees who resign are entitled to gratuity after completing one year of service, at the same rate as termination. Older reduced rates apply only to service under legacy unlimited contracts.
Does the fixed-term vs. unlimited contract distinction still matter?
Only for legacy service. Since 2 February 2022 contracts are fixed-term, and existing unlimited contracts had to be converted within the transition period. For new contracts, the old reduced resignation rates do not apply.
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.
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 no matter how long you’ve worked.
What if my employer refuses to pay gratuity?
When must my employer pay gratuity?
Within 14 days of the end of your employment. If your employer misses this window, you can file a complaint with MOHRE.
What is the optional alternative end-of-service savings scheme?
The UAE has introduced a voluntary scheme for private-sector and free zone employers. If an employer joins, it replaces the standard gratuity with an investment-based savings fund, and gratuity accrued before enrolment stays protected under the standard calculation. Check your contract or ask HR whether your employer has joined, and see the official UAE Government Portal for details.
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Contact Us
Have a question about the calculator, found a mistake, or want to suggest an improvement? Send us a message.
Prefer to email directly? info@onlinegratuitycalculator.ae
Last updated: 22 October 2026
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