Gratuity Calculator UAE 2025 – Your Complete End-of-Service Guide

UAE Labour Law-based tool for calculating end-of-service benefits. It supports limited and unlimited contracts across Dubai.

What is a Gratuity Calculator in UAE?

A gratuity calculator in UAE shows the end-of-service payout based on work data
This tool uses start date, end date, salary, and contract type.
The calculator gives an amount in AED (UAE Dirhams).
It follows formulas from the UAE Labour Law and MOHRE.

Most calculators support workers from Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain.

According to UAE Labour Law, gratuity is paid only after completing 5 continuous years with the same employer.

Who Can Use a UAE Gratuity Calculator?

Any worker with a full-time private contract can use a UAE gratuity calculator.
This includes expats and UAE nationals.

The law applies to:

• Employees in private firms
• Domestic helpers and housemaids (if the contract lists gratuity)
• Workers in mainland and free zone companies

MOHRE tools also apply to limited government roles unless excluded by special rules.

How to Calculate Gratuity in the UAE?

To calculate gratuity, use your last basic salary, service years, and contract type.
UAE law uses 21 days of salary per service year (1–5 years) and 30 days for service over 5 years.

The exact formula depends on:

• Whether you resigned or were terminated
• If your contract is limited or unlimited
• If your service was clean (no fault or penalty)

Always use basic salary no bonus, no allowance, no commission.

What are the UAE Gratuity Rules for 2025?

In 2025, all workers must have fixed-term contracts to receive gratuity.
Unlimited contracts are no longer valid.
Each contract can last up to 3 years and must be renewed.

Gratuity must be paid:

• Within 14 days of leaving the job
• In one lump sum
• Through direct bank deposit or WPS (Wage Protection System)

Fines apply to late payments. MOHRE may block work permits or penalize companies for delay.

What Affects Gratuity in UAE?

Gratuity changes based on your contract type, salary, and how long you worked.
Leaving the job with or without fault also affects it.

Key factors:

1. Service duration: Must be at least 1 year to get gratuity
2. Contract type: Limited or Unlimited
3. Exit type: Resignation or Termination
4. Salary base: Only the basic monthly pay is used

These apply the same way across all Emirates, including Sharjah, Dubai, Abu Dhabi, and Ajman.

What is the Formula for Gratuity Calculation?

UAE law uses one of six formulas based on contract and exit type.

Limited Contract:

• 1–5 years: 21 × basic salary × years ÷ 30
• 5+ years: 30 × basic salary × years ÷ 30

Unlimited Contract (Resigned):

• 1–3 years: ⅓ × 21 × salary × years ÷ 30
• 3–5 years: ⅔ × 21 × salary × years ÷ 30
• 5+ years: 30 × salary × years ÷ 30

Terminated (Any Contract):

• 1+ years: 21 or 30 × salary × years ÷ 30 based on total time

Days are calendar-based, not workdays.
Unpaid leave is not counted.

When do Employees Lose their Gratuity?

Employees lose gratuity if they break major job rules or resign too early.

No gratuity is paid if:

• You resign before finishing 1 full year
• You commit a work offense (e.g., theft, violence, fraud)
• You quit without giving notice as required
• You harm the company or leak sensitive information

These are stated under Article 139 of UAE Labour Law.

Gratuity is also cut or delayed if exit records are unclear or contract terms are broken.

How to Check your Gratuity Amount?

To check your gratuity, use your work dates and salary in a UAE calculator.

You will need:

• Start date (first day at job)
• End date (last working day)
• Monthly basic salary
• Contract type
• Resigned or terminated?

You can compute gratuity manually using the UAE formulas or use verified online tools from MOHRE, DDA, or law firms.

Is UAE Gratuity Tax-Free?

Yes, UAE gratuity is fully tax-free for both expats and nationals.

This applies to:

• Public and private sector jobs
• Mainland and free zone companies
• All roles listed under MOHRE

There are no deductions by the government.
Employers cannot reduce gratuity by adding tax, unless the employee owes fines or loans.

What is Included in UAE Final Settlement?

Final settlement includes gratuity, unused leave pay, and unpaid wages.

It may also contain:

• Bonus (if earned and unpaid)
• Notice pay (if employer skips it)
• Deductions for loans, fines, or losses

Final settlement is separate from gratuity but is paid together.
Use a UAE final settlement calculator to get the full estimate.

3 examples of gratuity calculation

Example 1: Limited Contract, 4 years, AED 4,000

Gratuity = 21 × 4,000 × 4 ÷ 30 = AED 11,200

Example 2: Unlimited Contract, Resigned After 3 Years, AED 6,000

Gratuity = ⅔ × 21 × 6,000 × 3 ÷ 30 = AED 8,400

Example 3: Unlimited Contract, Terminated After 6 Years, AED 7,000

Gratuity = 30 × 7,000 × 6 ÷ 30 = AED 42,000

Use online calculators to cross-check.

What to Check Before you Resign in UAE?

Before resigning, check if you qualify for gratuity and how much it will be.

Steps:

1. Confirm you worked 1 year
2. Confirm your contract type
3. Check if notice period is required
4. Use a gratuity calculator UAE to see amount
5. Get written records of all dues

Always resign in writing and give legal notice to avoid gratuity loss.
Ask HR for your final settlement slip or calculation..

Can I Calculate my Gratuity in Excel?

Yes, but it takes more time. You need:

• Start and end dates
• Formula based on contract
• Salary value and rules

Using this free tool is faster and gives instant answers.

Conclusion

The UAE gratuity system rewards long-term employment. Using a calculator helps estimate your benefit easily and accurately.

FAQs

Calculate Your Gratuity Now

Use this tool to check your end-of-service pay. It works for:

• Dubai, Abu Dhabi, Sharjah, Ajman
• Limited and Unlimited contracts
• 2023, 2024, and 2025 job dates

Legal Notice

This calculator follows UAE Labour Law. This page gives general help. For legal issues, contact a labour lawyer or MOHRE (www.mohre.gov.ae).