UAE Gratuity Calculator 2026
UAE Gratuity Calculator 2026
Disclaimer: This gratuity calculator is provided for informational purposes only. Workforce Group does not guarantee accuracy and is not responsible for any decisions made based on the results. For official calculations, please refer to UAE Labour Law or consult your HR department.
Calculate Your UAE Gratuity Accurately in Seconds
Easily calculate your end-of-service benefits in Dubai and across the UAE using Workforce Group’s accurate, up-to-date UAE Gratuity Calculator.
Whether you’re leaving the company due to resignation, termination, or end-of-contract, our tool gives you a precise figure according to the latest UAE Labour Law 2025.
Simply enter:
- Basic salary
- Start date & end date
- Contract type (Limited / Unlimited)
- Reason for leaving
And get your gratuity instantly, no manual calculations, no confusion, and no errors.
Workforce Group’s calculator is designed for:
- Employees
- HR departments
- Payroll teams
- Employers
- Job seekers planning future career changes
How the UAE Gratuity Calculator Works
Our system applies the official formulas from the UAE Labour Law (2023–2025). The calculator automatically:
1. Uses Your Basic Salary Only
Basic salary = The fixed amount in your labour contract.
Allowances are excluded, including:
- Housing
- Transportation
- Utilities
- Overtime
- Bonus
2. Calculates Your Daily Wage Automatically
Daily Wage = Basic Salary ÷ 30
3. Applies the Correct Formula Based on:
- Duration of service
- Contract type
- Resignation or termination
- Years under old unlimited contracts (if applicable)
4. Handles Leap Years & Contract Renewals
The calculator adjusts for:
- Leap years
- Contract renewals (considering total continuous service)
- Salary increments (uses last drawn basic salary)
What Is Gratuity in the UAE?
Gratuity, also called End-of-Service Benefits (EOSB), is a financial reward employees receive after completing at least one year of continuous service in the UAE.
It is a legal right that compensates employees for their contribution and loyalty throughout their employment.
Gratuity applies to:
- Expats in the private sector
- Most UAE free zones
- Limited-term and older unlimited-term contracts
UAE Gratuity Calculator Formula (2025 Law)
Below are the official formulas applied under the current law.
If You Worked Less Than 5 Years
Gratuity = (Basic Salary ÷ 30) × 21 × Years of Service
If You Worked More Than 5 Years
Gratuity = [(Basic Salary ÷ 30) × 21 × 5] + [(Basic Salary ÷ 30) × 30 × Additional Years]
Maximum Gratuity Limit
Gratuity is capped at two years’ basic salary.
Example Calculations
Example 1 – 4 Years of Service
- Basic Salary: AED 10,000
- Formula: 10,000 ÷ 30 × 21 ×
- Total Gratuity = AED 28,000
Example 2 – 6 Years of Service
- Basic Salary: AED 12,000
- Calculation:
- (12,000 ÷ 30 × 21 × 5) + (12,000 ÷ 30 × 30 × 1)
Total Gratuity = AED 54,000
Try the calculator above to get your exact amount.
Understanding Basic Salary vs Gross Salary
Many employees use the wrong salary during calculation.
Only basic salary counts, NOT gross salary.
Does NOT count:
- ✘ Housing allowance
- ✘ Transportation allowance
- ✘ Medical allowance
- ✘ Food allowance
- ✘ Overtime
- ✘ Bonus or commissions
Your contract will clearly show:
- Basic Salary
- Total Salary
- Allowances
If in doubt, check your MOHRE contract or ask HR.
Who Is Eligible for Gratuity in the UAE?
You qualify for gratuity if:
- You completed at least one year of service
- You resigned with proper notice
- You were terminated without misconduct
- You worked under a private-sector employer or free zone following UAE labour rules
You may NOT be eligible if:
- You worked less than 1 year
- You committed gross misconduct under Article 120
- You absconded
- You resigned without serving notice
Gratuity for Limited vs Unlimited Contracts
Although UAE now uses limited-term contracts, many employees are still under older unlimited agreements.
Limited Contract (Current System)
You get:
- 21 days’ salary per year (1–5 years)
- 30 days’ salary for years after 5
Unlimited Contract (Old System)
Resignation rules differ:
- 1–3 years ➝ ⅓ gratuity
- 3–5 years ➝ ⅔ gratuity
- 5+ years ➝ Full gratuity
Termination under old unlimited:
- Full gratuity for 1+ years
Does Unpaid Leave Affect Gratuity?
Yes, if you take unpaid leave, it reduces total service days.
Example:
- 60 unpaid leave days
- Service counted becomes: Total years – 60 days
Paid leaves (annual leave, sick leave, maternity) do NOT reduce gratuity.
Gratuity rules for part-time & temporary staff (2023–2025).
Part-time employees are entitled to pro-rated gratuity.
Formula:
(Working hours ÷ Full-time hours) × Full-time gratuity
Example:
- Full-time: 48 hours/week
- Part-time: 24 hours/week
You get 50% of full-time gratuity.
Gratuity in UAE Free Zones
Most free zones follow the UAE Labour Law, including:
Special Rules:
- DIFC and ADGM follow different regulations (DEWS pension-style system).
- Workforce Group’s calculator supports mainland and free zones under MOHRE rules.
Continuous Service Under Article 38
If your contract is renewed:
- Your total service = previous contract + renewed contract
- Gratuity is based on entire duration, not each contract separately
This is automatically calculated in the tool.
Employee Rights Checklist Before Leaving Your Job
Before final settlement, you should:
- Confirm basic salary with HR
- Verify start & end dates
- Check unpaid leave records
- Confirm annual leave balance
- Ensure all company items are returned
- Request a salary certificate
- Request service certificate (free by law)
Employer Obligations When Paying Gratuity
Employers must:
- Pay gratuity within 14 days
- Provide a full settlement breakdown
- Not withhold gratuity without legal basis
- Not force employees to sign waiver or “no claim” letters
Failing to pay may result in:
- Penalties
- Suspension from hiring
- Labour case fines
What to Do If Your Employer Refuses to Pay Your Gratuity
You may file a complaint through:
- MOHRE App
- 600 590 000 Hotline
- Taw-jeeh centers
- Nearest labour office
MOHRE typically resolves cases within 14–21 days.
Tips to Maximise Your Gratuity
- Ensure basic salary is updated correctly
- Keep copies of all contracts and pay slips
- Understand your notice period
- Track unpaid leaves
- Avoid resigning during disputes
- Always use a calculator before submitting resignation
Common Mistakes to Avoid
- ❌ Using gross salary instead of basic
- ❌ Entering wrong dates
- ❌ Forgetting unpaid leave deductions
- ❌ Misunderstanding resignation rules
- ❌ Using outdated pre-2023 formulas
Your gratuity result is only accurate when the correct data is entered.
Industry Comparison: GCC Gratuity Systems
The UAE’s gratuity system is similar but not identical to:
- Saudi Arabia
- Qatar
- Kuwait
- Oman
- Bahrain
UAE has:
- Faster processing
- Standardized contract rules
- Higher protection for employees
This positions the UAE as one of the most employee-friendly countries in the region.
Gratuity vs Tip – They Are Not the Same
| Aspect | Gratuity | Tip |
|---|---|---|
| Meaning | End-of-service benefit | Optional customer payment |
| Mandatory | Yes | No |
| Paid By | Employer | Customer |
| Based On | Basic salary × years | Customer discretion |
Why Use Workforce Group’s Gratuity Calculator?
Workforce Group is a trusted manpower and HR outsourcing company in Dubai.
We created this gratuity calculator to help the UAE community understand their rights and avoid miscalculations.
With our tool, you can:
- Instantly estimate your gratuity
- Stay compliant with the UAE Labour Law 2025
- Avoid manual errors
- Plan your financial future confidently
Workforce Group – Your Trusted HR & Manpower Partner
We provide:
Industries we serve include:
Construction, Oil & Gas, Hospitality, Healthcare, Logistics, Retail, Manufacturing, and more.
Try the UAE Gratuity Calculator Now
Use the free calculator above to know exactly how much your end-of-service benefits will be under the UAE Labour Law 2025.
If you need manpower support, outsourcing, or HR services
Workforce Group is here to support your growth across the UAE.
FAQs – UAE Gratuity & Final Settlement
What is the new rule for gratuity in UAE?
Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), gratuity is:
- Based entirely on basic salary
- Payable regardless of contract type (limited or unlimited)
- Calculated using 21 days’ basic salary per year for the first five years and 30 days per year after that
There is no deduction for resignations under the new law.
How to calculate final settlement in UAE?
Final settlement includes all remaining dues owed to an employee when leaving a job. It usually consists of:
- Unpaid salary
- UAE gratuity entitlement
- Unused annual leave salary
- Notice period salary (if applicable)
- Deductions, if any
Our calculator helps you estimate the gratuity part, while the employer adds any additional components.
How do I calculate my gratuity?
To calculate your gratuity:
- Find your last basic salary
- Enter your start date and last working date
- Apply the UAE gratuity formula based on years of service
To avoid errors, use the Workforce Group online Gratuity Calculator, which automatically applies the latest laws.
Who is eligible for gratuity in the UAE?
Any full-time employee who completes at least one year of continuous service is eligible for gratuity.
Eligibility does not depend on contract type.
Employees terminated for serious misconduct, however, may lose gratuity rights under Article 44.
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