Online UAE Gratuity Calculator 2025

Calculate your UAE end of service gratuity with ease

Online UAE Gratuity Calculator 2025

Gratuity Calculator UAE

Source: Calculation based on UAE Labour Law (Federal Decree-Law No. 33 of 2021) and official MOHRE guidelines.

In the UAE, every employee, expatriate or local, is entitled to an End-of-Service Gratuity (مكافأة). This mandatory financial payout is given to employees at the end of their service. Having knowledge on how to calculate gratuity under the UAE Labour Law ensures you receive the full amount you’re legally owed, especially when you are changing jobs or returning home.

To make the gratuity calculation process easier for UAE expats, we have provided an all-in-one UAE gratuity calculator that you can use for doing gratuity calculation in Dubai, Abu Dhabi, Sharjah, and all other emirates.

With Our UAE Gratuity Calculator You’ll Get

UAE Gratuity Calculator Instant Results 1
Gratuity Calculator UAE Accurate Estimates 1
Gratuity for UAE SSL Secured Site 1
Gratuity for UAE Free Calculations 1

How to Use the UAE Gratuity Calculator

Follow the steps below to use our Dubai Gratuity Calculator

  • Step 1: Enter your basic salary by excluding allowances like housing, transportation, or bonuses.
  • Step 2: In the next box, select the date you started and the date you ended your employment.
  • Step 3: Now enter your job ending circumstances, i.e, contract completion, resignation, or termination.
  • Step 4: Click on the ‘Calculate Gratuity’ button to calculate your gratuity amount.

Note: If you are a domestic worker in the UAE, then use our domestic worker gratuity calculator.

Disclaimer

Our UAE gratuity calculator is for informational and estimation purposes only, not legal advice. We ensure accuracy as per the latest UAE Labor Law (Federal Decree-Law No. 33 of 2021), the actual gratuity amount may slightly vary depending on individual employment contracts, company policies, and legal guidelines.

How to Calculate UAE Gratuity?

To calculate your UAE gratuity, follow these steps:

  1. Determine your basic salary: Gratuity is calculated based on your basic salary, excluding allowances and bonuses.
  2. Calculate service length:
    For the first 5 years of service: 21 days of basic salary for each year worked.
    For each year after 5 years: 30 days of basic salary for each year worked.
  3. Formula:
    For less than 1 year: (Basic Salary ÷ 30) × Number of days worked.
    For 1 to 5 years: 21 days of basic salary × Number of years.
  4. Conditions:
    The employee must have completed at least one year of service.
  5. Example:
    Basic Salary: AED 10,000
    Years Worked: 6 years
    First 5 years: 21 days × 5 = 105 days → AED 35,000.
    6th Year: 30 days → AED 10,000.
    Total Gratuity = AED 35,000 + AED 10,000 = AED 45,000.

Contract Type Update

As of February 2022, the UAE labor law abolished the distinction between limited and unlimited contracts under Federal Decree-Law No. 33 of 2021. All employment contracts are now considered fixed-term, and gratuity calculations follow a unified standard regardless of resignation or termination.

Eligibility Criteria for Gratuity

Find out if you qualify based on your service duration and contract type:

  • You must complete at least one full year of continuous service to qualify. Anything under 12 months yields no gratuity.
  • Continuous service includes probation, annual leave, and sick leave, but not unpaid leave. Breaks longer than the notice period may interrupt the count unless otherwise agreed.
  • Full-time and part-time workers alike qualify once they meet the one-year threshold. However, dismissal for gross misconduct (e.g., fraud, assault) under Article 44 can void your entire entitlement.

When Gratuity Can Be Forfeited

As per Article 44, Federal Decree-Law No. 33 of 2021 reasons for the forfeited gratuity are as follows:

ReasonsExplanation
Service less than 1 yearEmployee is not entitled to gratuity if the total service is under 12 months.
Theft or proven dishonestyInvolvement in theft, breach of trust, or any intentional damage.
Assault or violencePhysical assault or serious abuse against the employer or colleagues.
Disclosure of confidential informationRevealing business secrets or confidential data without permission.
Unauthorized absence (7 consecutive days)Absence from work without a legitimate reason.
Damage to company propertyCausing substantial harm or loss to the employer’s property.

UAE Labor Law and Gratuity Regulations

In February 2022 Federal Decree Law merged all contracts under a single, fixed-term regime. The previous “limited vs. unlimited” distinction was abolished, so all foreign and UAE national employees now follow the same gratuity rules.

Article 51: Gratuity Rules

  • As per the guidelines of Article 51, for the first five years, your gratuity is equal to 21 days of your basic salary per year.
  • After completing your five years of employment, your gratuity is equal to 30 days of your basic salary per year.
  • Your Unpaid absences are excluded from gratuity, so your gratuity accrual pauses for every day you are off payroll.
  • Your total gratuity payout is capped at two years’ basic salary amount.

Recent Clarifications from MOHRE

Ministry of Human Resources & Emiratisation (MOHRE) recently clarified that:

  • Fixed-term contracts can only be issued for a duration of three years and are renewable.
  • If an employee is dismissed for any sort of gross misconduct, the employer has the legal right to withhold the gratuity payment (Article 44).
  • Employers have to pay the gratuity amount within 14 days of service end (Article 53).

Factors Affecting Gratuity Calculation

Correctly understanding what factors may influence your final settlement calculation is essential for making accurate expectations. Here are the key elements:

1. Basic Salary Only

As per Article 51 of Federal Decree-Law No. 33 of 2021, Gratuity is strictly calculated based on your basic salary, not your total compensation. This means:

  • Excluded: housing allowance, transportation allowance, commissions, bonuses, overtime pay, or any benefits in kind.
  • Included: only the fixed basic monthly salary as stated in your employment contract.

2. Length of Service

Gratuity is accrued based on the actual period of paid continuous service. Any unpaid leave, such as extended personal leave without salary, is excluded from gratuity calculations specified under Article 51(3).

3. Resignation vs. Termination

Under the new UAE gratuity law, both resignation and termination result in the same gratuity rules. The old 1/3 or 2/3 rule for unlimited contracts ended on 1st February 2023 (Articles 8 and 51).

4. Maximum Gratuity Cap

No matter how many years you work, the UAE Labor Law caps the gratuity amount at 24 months of your basic salary Article 51(7).

Employer Responsibilities

UAE Gratuity Calculator

Below are some key legal obligations and best practices that an employer in the UAE should follow:

Legal Obligations

  • Employers must settle gratuity payments within 14 days of the employee’s last working day (Article 53).
  • Failure to pay gratuity on time can result in MOHRE complaints, fines, and legal disputes (Article 54).
  • Employers must provide a clear breakdown of the final settlement, including gratuity, unused leave compensation, and any pending salary dues (Article 51).
  • If an employer refuses to pay gratuity, employees have the right to file a formal complaint through MOHRE’s online portal (Article 55).

Legal Best Practices

  • Non-compliance can lead to labor court cases, financial penalties, and reputational damage for the employer (Article 56).
  • Employers should keep accurate payroll records to ensure compliance and prevent disputes under Article 51(3).
  • HR departments must be trained in UAE labor laws to correctly manage end-of-service benefits (Article 57).

How to File a Gratuity Complaint in the UAE

Below is a complete process for filing a gratuity complaint in the UAE

Step 1: Gather your Emirates ID, employment contract, termination/resignation letter, and any salary slips.

Step 2: Visit mohre.gov.ae or use the MOHRE smart app. You can also call (600590000 or 800-84) for help.

Step 3: Log in using UAE Pass or your phone number, then select “Labor Complaints – Private Sector.”

Step 4: Enter your details, explain the problem (e.g., unpaid gratuity), and upload your documents.

Step 5: After you submit your complaint, you will receive an email or call from the Ministry of Human Resources & Emiratisation representative who will try to resolve your issue within 14 days.

Step 6: If the issue isn’t resolved, MOHRE will forward your case to court for a final decision.

Common Misconceptions

Here are some common mistakes that people make while doing gratuity calculation in UAE

  1. “I get a full month’s salary as my gratuity.”
     It’s 21 days, not 30, for the first 5 years.
  2. “Allowances are also counted in gratuity calculation.”
     Only your basic salary forms the base of your gratuity computation in UAE.
  3. Unlimited contract myths.
     Old “1/3–2/3” gratuity calculation scales ended in February 2023.
  4. “Employers can delay gratuity payments”.
     Employers must settle within 14 days or they’ll face complaints.

Frequently Asked Questions

With the recent MOHRE guidelines, the maximum gratuity given to the employee should not exceed more than two years’ total salary.

Employees have to complete at least one year or more service to be considered for gratuity payments.

In the United Arab Emirates, the government does not impose any kind of income tax, so employees will get their full gratuity payments without any tax deduction.

Employers in the UAE are bound to pay the gratuity payment within 14 days.

You need to subtract the allowances like housing, transport, and other benefits from your total monthly salary to get your basic salary amount.

Conclusion

Understanding your gratuity entitlement is necessary for ensuring fair compensation at the end of your service. Our online UAE gratuity calculator has simplified the gratuity calculation process, providing accurate estimates based on the latest labor laws, so you can plan your future with confidence. Use our tool to calculate your gratuity hassle-free and secure what you’re rightfully owed.