Gratuity Calculator
Calculate your gratuity pay easily using this UAE-focused tool. Enter your last basic salary and total years of service to estimate the amount.
Know your end-of-service benefits in minutes. This tool helps both private and public sector employees working in the UAE.
If you’ve completed at least five years with your employer, this calculator shows the amount you’re eligible to receive when leaving your job.
Gratuity Calculator UAE
| # | Period From | Period To | Days | Gratuity |
|---|---|---|---|---|
| Total Gratuity | AED 0.00 | |||
How to Use the Gratuity Calculator in UAE
Use the tool below by entering key details about your job and salary.
- Enter your last drawn basic salary, including any allowances.
- Select the total number of years you’ve worked with the company.
- Press calculate to get your total gratuity in UAE dirhams.
This calculator works based on the official gratuity formula used in the UAE. It applies to full-time employees who have completed five or more years in service.
According to UAE Labour Law, gratuity is paid only after completing 5 continuous years with the same employer.
What is Gratuity in UAE?
Gratuity is a one-time payment given to employees after they leave a job. It is calculated based on the basic salary and years of service.
In the UAE, gratuity is part of end-of-service benefits. It applies to private sector workers under permanent contracts.
Employees become eligible after five full years with the same employer. Early resignation or dismissal may affect the final amount.
How Is Gratuity Calculated in UAE?
Gratuity in the UAE is calculated using a standard formula based on the last basic salary and total years worked.
Gratuity Formula Example
Gratuity = (21 × basic salary × years of service) ÷ 30
This formula applies to employees under limited or unlimited contracts who resign after completing at least 5 years.
If you worked for 7 years and your last basic salary was AED 6,000, then gratuity = (21 × 6000 × 7) ÷ 30 = AED 29,400
If the last year of service is more than 6 months, it is rounded to a full year. For example, 5 years 7 months is treated as 6 years.
Gratuity Limits in UAE
The maximum gratuity an employee can receive in the UAE is AED 20,000. Any amount above this limit is not legally required.
Who Is Eligible for Gratuity in UAE?
Employees working under a full-time contract for at least 5 years are eligible for gratuity in the UAE.
Gratuity for Expats and Nationals
Both UAE nationals and expats in the private sector can receive gratuity. The benefit applies equally as per UAE Labour Law.
Is Gratuity Taxable in the UAE?
Gratuity paid in the UAE is not taxed. It is considered a benefit, not income, and is received as a lump sum on job termination.
Tax-Free Gratuity Explained?
Employees do not need to report or pay tax on gratuity. This applies to both local and foreign employees working in the UAE.
What Does UAE Labour Law Say About Gratuity?
Employees are entitled to gratuity under Federal Decree-Law No. 33 of 2021, which governs employment relationships.
Labour Law Highlights for Gratuity
Employers must pay gratuity within 14 days of contract termination. This is applicable when the employee completes five or more years.
Gratuity is based only on the last drawn basic salary, excluding bonuses, commissions, or housing allowance.
Gratuity Calculation Examples (UAE Salaries)
A worker with a basic salary of AED 5,000 and 6 years of service will get:
(21 × 5,000 × 6) ÷ 30 = AED 21,000
Another example: A person with AED 7,000 basic salary and 10 years of service:
(30 × 7,000 × 10) ÷ 30 = AED 70,000
Important Notes About UAE Gratuity
Employees must not have been terminated for misconduct to receive gratuity.
Conclusion
The UAE gratuity system rewards long-term employment. Using a calculator helps estimate your benefit easily and accurately.
FAQs
Gratuity is a lump sum paid to employees who complete 5 or more years of service.
How do I calculate my gratuity in UAE?
Use the formula: (21 × basic salary × years of service) ÷ 30.
Full-time employees with continuous 5-year service under one employer.
No, gratuity applies only to full-time contracts unless specified by the employer.
No, gratuity is tax-free in the UAE for both locals and expats.
Employers must pay gratuity within 14 days of contract end.
No, except in cases of death or disability due to illness or injury.
No, only the last basic salary is used for calculation.
If dismissed for misconduct, gratuity is not paid under UAE law.