UAE Gratuity Calculator
Calculate your UAE end-of-service gratuity free. Instant result, transparent formula, year-by-year breakdown. Based on current UAE Labour Law.
UAE Gratuity Calculator
Free · Instant · Based on Federal Decree-Law No. 33 of 2021
How This Calculator Works
This calculator applies the general UAE private-sector gratuity framework underFederal Decree-Law No. 33 of 2021 (Article 51). Enter your basic monthly salary, start date, and end date for an instant estimate.
What You Need
- Basic monthly salary — not gross salary or total package
- First working date — your official joining date
- Last working date — your actual last day of employment
- Unpaid absence days (optional) — excluded from eligible service
Current Formula (2026)
Eligibility Requirements
- Minimum 1 complete year of continuous eligible service
- Applies to general UAE private-sector full-time workers
- Special categories (domestic workers, some free-zone workers) may differ
- Unpaid absence periods are excluded from the eligible service count
Common Calculation Mistakes
- Using gross salary instead of basic salary — allowances are excluded. Only enter your basic pay. See basic salary explained.
- Assuming resignation removes gratuity — under the current law, resignation after the minimum service period generally still entitles you to gratuity. See gratuity after resignation.
- Ignoring unpaid leave — approved unpaid absence reduces your eligible service period.
- Forgetting the maximum cap — total gratuity cannot exceed 2 years' basic wage.
- Using old limited/unlimited contract rules — these applied under the previous law. See historical contract terminology.
Partial Year Calculation
Partial years are calculated proportionally based on the number of eligible service days in that period. For example, 6 months in the first 5 years: daily wage × 21 × (182 ÷ 365) ≈ 10.46 days' worth of gratuity. Our calculator handles this automatically. See full examples.
Independence: Independent calculator — not affiliated with MOHRE, the UAE Government, Dubai Development Authority, or any government entity.
Official Sources
GovUAE Government Portal — u.aeMOHREMinistry of Human Resources — mohre.gov.aeCalculator FAQs
How to calculate gratuity in UAE?
Under the general UAE private-sector framework: (1) Determine your last basic monthly salary. (2) Calculate your daily wage: monthly salary ÷ 30. (3) For the first 5 years of eligible service: multiply daily wage × 21 × number of years. (4) For service beyond 5 years: multiply daily wage × 30 × remaining years. (5) Add both amounts. (6) Apply the maximum cap (2 years' basic wage). Partial years are calculated proportionally. Use our calculator for an instant estimate.
How is UAE gratuity calculated?
UAE gratuity is calculated based on your last basic wage (not gross salary including allowances). Your daily wage is derived by dividing your monthly basic salary by 30. You then apply 21 days per year for the first 5 years and 30 days per year for service beyond 5 years. The result cannot exceed the equivalent of two years' basic wage.
What is the formula for calculating gratuity?
UAE gratuity formula (general private-sector framework): Daily wage = Monthly basic salary ÷ 30. For years 1–5: Gratuity = Daily wage × 21 × years served (up to 5). For years beyond 5: Gratuity = Daily wage × 30 × additional years. Total = First period + Second period (subject to 2-year wage cap). Partial years are calculated proportionally by days.
How do I calculate my gratuity amount?
Enter your basic monthly salary, joining date, and last working date into our UAE gratuity calculator. The calculator will immediately show your estimated gratuity, the full formula used, and a year-by-year breakdown. You can also download a PDF report of your calculation.
How do you calculate a gratuity?
In the UAE: identify your basic monthly salary (not total salary), determine your eligible service period in years and days, calculate your daily wage (monthly salary ÷ 30), apply 21 days per year for the first 5 years and 30 days per year thereafter, then total the amounts. Verify the result does not exceed the 2-year wage cap.
How do I calculate gratuity on my salary?
Your gratuity is calculated on your basic salary only — not your gross salary or total compensation. Housing allowance, transport allowance, and other standard allowances are not included. Enter only your basic monthly salary into the calculator.
Why is gratuity divided by 26 or 30?
In the UAE, the daily wage for gratuity purposes is calculated by dividing the monthly basic salary by 30 days. This is the UAE Labour Law standard. The figure 26 is used in India's Gratuity Act to derive daily wages based on 26 working days per month — this is an India-specific rule and does not apply in the UAE. See our UAE vs India comparison page for more information.
Why is 26 in gratuity calculation?
The number 26 appears in Indian gratuity calculations, not UAE calculations. Under India's Payment of Gratuity Act 1972, the formula uses 26 working days per month. In the UAE, the divisor is 30 days per month under UAE Labour Law. These are different legal systems with different rules.
Why is gratuity 4.81% of basic?
The 4.81% figure relates to Indian gratuity calculations, not UAE gratuity. In India, the formula (15/26) × number of years × monthly salary produces approximately 0.577 months per year, which is sometimes expressed as 4.81% of annual salary. This formula does not apply in the UAE. See our UAE vs India comparison for the correct UAE formula.
Who is eligible for gratuity in the UAE?
Under the general UAE private-sector framework, employees who have completed at least one full year of continuous service are eligible for end-of-service gratuity. This applies to qualifying private-sector employees. Special categories such as domestic workers, free-zone workers, UAE nationals covered by pension schemes, and workers under the End-of-Service Savings Scheme may have different rules.
Is 5 years compulsory for gratuity?
No. In the UAE, the minimum requirement is one full year of continuous service. You become eligible for gratuity after completing one year, not five. The 5-year threshold is only significant because it determines the rate: for the first 5 years, the rate is 21 days per year; for service beyond 5 years, it increases to 30 days per year.
Is gratuity eligible for 5 years or 4.8 years?
In the UAE, gratuity eligibility begins after one full year of service. There is no 4.8-year or 4 years 8 months rule for basic eligibility. A common misconception comes from India, where some interpretations of the Payment of Gratuity Act consider 4 years and 240 days (approximately 4.8 years) as qualifying for the 5th year. This does not apply in the UAE.