How to Use MOHRE Gratuity Calculator UAE 2025
To calculate your UAE gratuity using online calculators that follow MOHRE guidelines. These free tools estimate your end-of-service benefits in minutes by entering your salary and service years.
What Is The MOHRE Gratuity Calculator?
The MOHRE gratuity calculator is a free online tool that estimates your end-of-service payment. The tool follows UAE Labour Law rules and helps employees and employers calculate gratuity quickly.
These calculators work for all UAE workers in Dubai, Abu Dhabi, Sharjah, and other emirates. They use the same formulas that companies must follow by law.
Gratuity calculators save time and prevent calculation errors. Manual calculations often lead to mistakes that cost workers money. Online tools provide instant results and help you plan finances before leaving your job.
How Do You Use The MOHRE Gratuity Calculator?
You use a gratuity calculator by entering five key details: basic salary, contract type, service dates, and departure method. Follow these steps to get your estimate:
Step 1: Enter Your Basic Salary
Basic salary is your monthly pay without allowances or bonuses. Only the last basic salary counts for gratuity calculations in UAE.
Your basic salary excludes:
- Housing allowance
- Transport money
Example: Your total package is AED 8,000 but your basic salary is AED 5,000. Use AED 5,000 for calculations.
Step 2: Select Your Contract Type
UAE has two contract types: limited and unlimited. Each type has different gratuity rules.
Limited Contract: Has a fixed end date like 2 years. Early departure may reduce gratuity.
Unlimited Contract: Has no set end date. Workers can leave with proper notice but face different gratuity rules.
Step 3: Enter Service Dates
Enter your first working day and last working day. The calculator counts only paid working days, not unpaid leave periods.
Step 4: Choose Departure Method
Select how you left your job: resignation, termination, or natural contract end. This choice affects your gratuity amount.
Step 5: Calculate Results
Click the calculate button to see your total gratuity in AED. The tool shows instant results based on UAE Labour Law formulas.
Who Gets Gratuity In UAE?
Expatriate employees in private sector jobs get gratuity after one year of continuous service. Article 51 of UAE Labour Law mandates this benefit for non-GCC nationals.
Workers must meet these requirements:
- Work at least 1 full year
- Be expatriate employees
- Work full-time in private companies
UAE nationals receive pension benefits instead of gratuity through the National Pension Plan.
How Is UAE Gratuity Calculated?
UAE gratuity uses two formulas: 21 days’ salary for first 5 years, then 30 days’ salary for additional years. The calculation depends on your contract type and departure method.
Limited Contract Formula
Limited contract workers get full gratuity if they complete their contract term.
Service Period 1-5 years: 21 days’ salary × years ÷ 30 Service Period 5+ years: First 5 years at 21 days + remaining years at 30 days
Unlimited Contract Formula
Unlimited contract gratuity depends on whether you resigned or got terminated.
Resignation after 1-3 years: 1/3 of (21 days’ salary × years ÷ 30) Resignation after 3-5 years: 2/3 of (21 days’ salary × years ÷ 30)
What Are Real Gratuity Calculation Examples?
Gratuity amounts vary based on salary, service years, and contract type. These examples show actual calculations:
Example 1: Limited Contract Employee
- Basic salary: AED 6,000
- Service time: 3 years
- Calculation: 21 × 6,000 × 3 ÷ 30 = AED 12,600
Example 2: Unlimited Contract Resignation
- Basic salary: AED 8,000
- Service time: 4 years
- Calculation: 2/3 × (21 × 8,000 × 4 ÷ 30) = AED 14,933
Example 3: Long-Term Employee
- Basic salary: AED 10,000
- Service time: 7 years
- First 5 years: 21 × 10,000 × 5 ÷ 30 = AED 35,000
- Next 2 years: 30 × 10,000 × 2 ÷ 30 = AED 20,000
- Total: AED 55,000
When Do You Lose Gratuity Rights?
You lose gratuity if you work less than one year or get fired for serious misconduct. Article 139 of UAE Labour Law lists specific situations that cancel gratuity:
Gratuity is denied for:
- Working less than 1 year
- Theft or workplace violence
Always follow proper resignation procedures to protect your gratuity rights.
How Do You Maximize Your Gratuity Benefits?
Keep employment records and understand UAE labor laws to protect your gratuity rights. Proper documentation prevents payment disputes.
Essential Documents
Save these employment documents:
- Job contract copies
- Salary certificates
Good record-keeping helps resolve disputes about payment amounts or eligibility.
Know Your Legal Rights
Study UAE Labour Law rules on gratuity eligibility and calculations. Visit the MOHRE website for official labor law updates.
Discuss gratuity terms with your HR team to prevent misunderstandings.
What Types Of Gratuity Calculators Exist?
Three main types of gratuity calculators serve UAE workers: government tools, third-party websites, and company-specific systems.
Government calculators like Dubai Development Authority tools provide official calculations for free zone employees.
Third-party calculators from news sites and payroll companies offer free estimation tools for all workers.
What Is The Difference Between Gratuity And Final Settlement?
Gratuity is one part of your final settlement package. Your complete final payment includes multiple components beyond gratuity.
Final settlement includes:
- Last month’s salary
- Unused vacation days
Use gratuity calculators only for the gratuity portion, not your total final pay.
How Do Special Cases Affect Gratuity?
Part-time workers and domestic employees follow different gratuity calculation methods. Their formulas adjust for working hours or job type.
Part-time calculation: Working hours per year ÷ full-time hours per year × 100 = percentage for gratuity calculation.
Domestic workers like housemaids typically get one month’s salary for each year of service.
What Common Gratuity Mistakes Should You Avoid?
The biggest mistake is using total salary instead of basic salary for calculations. Only basic salary counts for gratuity, not allowances or bonuses.
Other common errors:
- Counting unpaid leave days in service period
- Not knowing your contract type
Wrong calculations cost workers thousands of dirhams in lost benefits.
How Do You Claim Your Gratuity Payment?
Submit a written request to your HR department within 14 days of your last working day. UAE law requires employers to pay gratuity within 14 days of contract termination.
Claiming Process
Step 1: Write formal letter requesting gratuity calculation Step 2: Review company calculation against online calculator results
Contact MOHRE or legal advisors if your employer refuses payment or calculates wrong amounts.
Frequently Asked Questions
Is gratuity taxable in UAE? No, gratuity payments are completely tax-free in UAE for all employees.
What is the maximum gratuity amount? Gratuity cannot exceed two years of basic salary according to UAE Labour Law.
Can UAE nationals get gratuity? UAE nationals typically receive pension benefits instead, though new voluntary schemes allow gratuity options.
For more information about gratuity calculations, visit our guide on how to calculate gratuity in UAE and learn about new gratuity laws.
Final Thoughts
Using a MOHRE gratuity calculator helps you estimate end-of-service benefits accurately and quickly. These free tools prevent calculation errors and help you plan your financial future.
Remember to use only basic salary amounts, know your contract type, and keep employment records. Contact MOHRE or legal professionals for disputes or questions about your gratuity rights.
Calculate your gratuity today using our free UAE gratuity calculator to plan your financial future and get every dirham you deserve.
