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  3. Gratuity Calculator UAE

Gratuity Calculator UAE

Instantly calculate your end-of-service gratuity using the official MOHRE method. Works for resignation, termination, and all UAE contract types.

How Gratuity Is Calculated in the UAE

Gratuity is calculated based on your last drawn basic salary, as per MOHRE guidelines. Housing, transport, and other allowances are excluded from the calculation.

Gratuity Calculation Formula (MOHRE)

1 to 5 Years

21 Days Basic salary per year Formula: (Basic ÷ 30) x 21 x Years of Service

Above 5 Years

30 Days Basic salary for each additional year Formula: First 5 years gratuity + (Basic Salary ÷ 30) x 30 x Remaining Years

Key Rules & Factors

  • Eligibility: You are entitled to gratuity only if you complete minimum 1 continuous year of service.
  • Unpaid Leave: Any unpaid leave days must be deducted from your total service duration before calculation.
  • Payment Deadline: Employers must pay gratuity within 14 days of the contract end date.
  • Maximum Cap: The total payout cannot exceed the equivalent of two years' salary.

Note: This calculator follows official MOHRE gratuity rules. Unpaid leave days are excluded from service duration. Always refer to your employment contract for company-specific conditions.


How to Use the UAE Gratuity Calculator Correctly

Calculating your End of Service Benefits (EOSB) is simple, but it requires accurate data from your labor contract. Follow this guide to ensure your estimate matches the official MOHRE figures.

Step 1: Identify Your "Basic Salary" (Crucial)

This is the most common mistake. Your gratuity is calculated only on your Basic Salary, not your Total (Gross) Salary.

  • Basic Salary: The base amount listed in your contract before any additions.
  • Allowances: Housing, transport, phone, and utilities are excluded from gratuity calculations.
  • Bonuses: Sales commissions or performance bonuses are generally excluded unless your contract states otherwise.

Step 2: Determine Your Contract Type

Since the implementation of the new UAE Labor Law (Federal Decree-Law No. 33), most private sector employees are on Limited (Fixed-Term) Contracts.

  • Limited Contract: You have a specific end date (e.g., 2 years).
  • Unlimited Contract: These are being phased out. If you haven't updated your contract since Feb 2022, check with HR.

Step 3: Input Your Service Duration

Enter your start and end dates accurately.

  • Unpaid Leave: Any days taken as unpaid leave (absent without pay) must be deducted from your total service period.
  • Probation: The probation period is included in your service years calculation.

Step 4: Review the Result

Our calculator applies the standard 21/30 day rule:

  • First 5 Years: 21 days of basic salary for each year.
  • Over 5 Years: 30 days of basic salary for each additional year.

Frequently Asked Questions

Frequently Asked Questions

What is the formula for calculating gratuity in UAE?

For 1-5 years of service, the formula is: (Basic Salary / 30) x 21 x Years. For service exceeding 5 years, it is: [(Basic Salary / 30) × 21 × 5] + [(Basic Salary / 30) × 30 × (Remaining Years)].

How to calculate gratuity in UAE for 5 years?

For exactly 5 years of service, your gratuity is calculated as 21 days of basic salary for each year. Formula: (Basic Salary ÷ 30) × 21 × 5.

How to calculate gratuity in UAE for 5 years?

Under the new UAE Labour Law, gratuity is calculated on working days (excluding unpaid leave). The distinction between limited and unlimited contracts has largely been unified, ensuring full gratuity if you have completed at least one year of service.

What is the new rule for gratuity in UAE?

Under the new UAE Labour Law, gratuity is calculated on working days (excluding unpaid leave). The distinction between limited and unlimited contracts has largely been unified, ensuring full gratuity if you have completed at least one year of service.

How to calculate gratuity in UAE for 1 year?

If you have completed exactly 1 year, you are entitled to 21 days of basic pay. Calculation: (Basic Salary ÷ 30) × 21.

Is gratuity calculated on Gross or Basic salary?

Gratuity is calculated strictly on the Basic Salary mentioned in your contract. It does not include allowances, bonuses, or overtime.

What is the calculation if I resign?

If you have completed at least one year of continuous service, you are entitled to your full gratuity based on the 21/30 day rule, regardless of whether you resign or are terminated.

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Official MOHRE Formula (2026)

Basic salary only (exclude allowances).

Deducted from service period.