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UAE Gratuity Calculator
Quick Reference:Use this free tool to calculate your end-of-service gratuity entitlement under UAE Labour Law. The calculator determines your gratuity based on years of service, salary, and employment circumstances.
How Gratuity Works
- Calculation Base: Basic salary only (excludes allowances)
- Eligibility: Minimum 1 year of continuous service required
- Rates: 21 days per year for first 5 years, 30 days per year thereafter
- Maximum Cap: Limited to 3 months' salary
- Taxation: Not subject to UAE income tax
Enter your details in the calculator below for a personalized estimate.
How This Gratuity Calculator Works
Calculation Formula
This calculator uses the standard UAE Labour Law formula:
- Years 1-5: 21 days × basic monthly salary ÷ 30 days per year
- Years 5+: 30 days × basic monthly salary ÷ 30 days per year
- Cap: Maximum gratuity limited to 3 months' salary
What's Included
This calculator covers:
- Voluntary separation (resignation)
- Involuntary termination (dismissal for cause)
- End-of-contract non-renewal
- Contract renewals (counted as continuous service)
What's NOT Included
- Termination for misconduct (may forfeit gratuity)
- Additional employer bonuses or negotiated settlements
- Deductions for outstanding debts or penalties
Disclaimer: This calculator provides an estimate. For final gratuity calculation, consult your HR department or a legal advisor familiar with your specific employment agreement.
FAQ
Is gratuity calculated on basic salary or total salary?
A: Gratuity is calculated solely on your basic monthly salary, excluding all allowances. them.
Can I negotiate my gratuity amount?
A: No. Gratuity is a legal entitlement calculated according to UAE Labour Law. However, employers may offer additional separation benefits beyond statutory gratuity.
What if I have multiple contract renewals?
A: All renewals count as continuous service for gratuity calculation purposes.
What happens if I resign before one year?
A: You are not entitled to any gratuity if you leave before completing one year of continuous service.
How is gratuity paid?
A: Gratuity is typically paid via bank transfer or cheque along with your final settlement within 14 days of your last working day.
Is gratuity taxable in the UAE?
A: No, the UAE does not impose income tax on employee gratuity payments.
