UAE Gratuity Calculator
Calculate end of service gratuity for UAE employees under the Labour Law.
UAE Gratuity Rules:
- • First 5 years: 21 days basic salary per year
- • After 5 years: 30 days basic salary per year
- • Total capped at 2 years of basic salary
- • No gratuity for resignation before 1 year
What is UAE Gratuity Calculator?
In the UAE, gratuity (end of service benefit) is paid to expatriate employees when their employment ends, as per the UAE Labour Law. A UAE gratuity calculator estimates the amount based on your basic salary and years of service.
The gratuity is calculated on the basic salary only (excluding allowances) and depends on the type of contract and the reason for leaving.
How does the UAE Gratuity Calculator work?
For unlimited contracts: 21 days of basic salary for each of the first 5 years, and 30 days per year thereafter. For limited contracts: 21 days per year for the first 5 years and 30 days after, with different rules for resignations.
The total gratuity is capped at 2 years' basic salary. Employees who resign before completing 1 year (or 3 years under some rules) may not be eligible.
How to use the UAE Gratuity Calculator?
- Enter your basic salary (excluding allowances).
- Enter your total years of service in the UAE.
- Select your contract type and reason for leaving.
- The calculator shows your estimated gratuity.
Example
Try the calculator with your own numbers
- Enter your values in the input fields above.
- Adjust the values to match your situation.
- The result updates instantly as you change the inputs.
Benefits of using the UAE Gratuity Calculator
- Know your end-of-service benefits before resigning.
- Plan your finances when switching jobs in the UAE.
- Understand how contract type affects your gratuity.
- Verify the amount your employer should pay.
Who should use the UAE Gratuity Calculator?
- Individuals planning loans, investments, or retirement savings.
- Salaried employees estimating taxes, EMIs, and take-home pay.
- Small business owners tracking costs, margins, and cash flow.
- Students learning personal finance and investment concepts.
Tips for getting the most out of the UAE Gratuity Calculator
- Use realistic return rates — past performance does not guarantee future returns.
- Re-run the calculation whenever your income, expenses, or goals change.
- Compare a few scenarios (conservative, moderate, aggressive) before making a decision.
Frequently Asked Questions
Is gratuity calculated on basic salary or total salary?
Gratuity in the UAE is calculated on the basic salary only, excluding housing, transport, and other allowances.
What is the maximum gratuity amount?
The total gratuity is capped at two years' basic salary, regardless of how long you have served.
Do I get gratuity if I resign?
Yes, but the amount may be reduced depending on your contract type and years of service. Under unlimited contracts, resigning after 1-3 years reduces the gratuity.
Planning your finances is easier when you can see the numbers clearly. Use this calculator regularly to stay on top of your goals and make informed decisions.
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