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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

A: Gratuity is calculated solely on your basic monthly salary, excluding all allowances. them.

A: No. Gratuity is a legal entitlement calculated according to UAE Labour Law. However, employers may offer additional separation benefits beyond statutory gratuity.

A: All renewals count as continuous service for gratuity calculation purposes.

A: You are not entitled to any gratuity if you leave before completing one year of continuous service.

A: Gratuity is typically paid via bank transfer or cheque along with your final settlement within 14 days of your last working day.

A: No, the UAE does not impose income tax on employee gratuity payments.