Gratuity Calculator UAE — End of Service Benefits

Leaving your job in the UAE? Before you sign that final settlement, you need to know exactly what you’re owed. Gratuity is your end-of-service benefit — a lump sum paid by your employer when your contract ends. Most employees don’t know how to calculate it. Most employers won’t explain it. This calculator gives you the number in seconds.

Gratuity Calculator

Safety Note: UAEfinbiz is an informational guide only. This calculator provides an estimate based on UAE Labour Law. Final gratuity is subject to your contract terms, employer policy, and any deductions. For verified information on UAE labour law, visit the official MOHRE website at www.mohre.gov.ae . Always confirm your final settlement with your employer or a legal advisor.

How UAE Gratuity Is Calculated

The UAE Labour Law states:

• If you have completed 1 year or more of continuous service, you are entitled to gratuity.
• If you resign before completing 1 year, you are not entitled to gratuity.
• For the first 5 years, gratuity is calculated at 21 days’ basic wage per year.
• For each year after 5 years, gratuity is calculated at 30 days’ basic wage per year.
• The maximum gratuity is capped at 2 years’ total wage.

Important: Gratuity is calculated on basic salary only — not including allowances like housing, transport, or phone. If your contract has a different gratuity structure, that applies instead.

Frequently Asked Questions

How is gratuity calculated in UAE?

Gratuity is calculated on your basic salary. For the first 5 years, you get 21 days’ basic wage per year. After 5 years, you get 30 days’ basic wage per year. Maximum gratuity is 2 years’ total wage.

Am I entitled to gratuity if I resign?

Yes, if you have completed at least 1 year of continuous service. If you resign before 1 year, you are not entitled to gratuity.

Is gratuity calculated on basic salary or total salary?

Gratuity is calculated on your basic salary only. Allowances like housing, transport, and phone are not included.

What is the maximum gratuity I can receive?

The maximum gratuity is capped at 2 years’ total wage (24 months of basic salary).

Can my employer deduct from my gratuity?

Yes, in certain cases. If you owe the employer money, or if you leave without serving notice, deductions may apply. Check your contract and UAE Labour Law for details.

How long does it take to receive gratuity after leaving?

Employers must pay gratuity within 14 days of your last working day. If they delay, you can file a complaint with MOHRE.

Is gratuity taxable in UAE?

No. The UAE does not impose income tax on gratuity or salaries.

What if my employer refuses to pay gratuity?

File a complaint with MOHRE. They will investigate and can order your employer to pay. For legal advice, consult a UAE labour lawyer.