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Calculate Your Gratuity Entitlement

Total Gratuity Entitlement (AED)
AED 0.00
Description Amount (AED)
📋 UAE Labour Law 2026 - Gratuity Rules:

Limited Contract (Current Standard) & any Termination:
• 1-5 years: 21 days basic salary per year
• 5+ years: 30 days basic salary per year
• Maximum cap: 2 years' salary (730 days)

Unlimited Contract + Resignation (legacy):
• 1-3 years: 1/3 of the standard entitlement
• 3-5 years: 2/3 of the standard entitlement
• 5+ years: full entitlement

Eligibility: Minimum 1 year continuous service required. Gross misconduct dismissals under Article 120 forfeit gratuity entirely.
⚠️ Disclaimer: This gratuity calculator provides estimates based on UAE Labour Law and MOHRE guidelines. Actual end of service benefits may vary based on employment contract terms, deductions (loans, advances), and final settlement details. Always verify with your employer, HR department, or a legal advisor for accurate calculations. This tool is for informational purposes only.

About Dubai Gratuity Calculator 2026

Our Free Dubai Gratuity Calculator is an online tool that calculates your end of service gratuity benefit (EOSB) using your actual join and leave dates, so you get an exact day-based figure rather than a rough estimate rounded to whole years. It covers both current Limited Contracts and legacy Unlimited Contracts, and distinguishes resignation, termination, and dismissal for gross misconduct — the three scenarios that genuinely change your entitlement under UAE law.

What is Gratuity? (End of Service Benefits)

Gratuity, officially known as End of Service Benefit (EOSB), is a mandatory lump-sum financial benefit paid to employees upon termination of employment in the UAE. It's legally mandated under Article 51 of UAE Federal Decree-Law No. (33) of 2021 and applies to all private sector workers regardless of nationality. The amount is calculated from your years of service and your last monthly basic salary.

Why Dates Instead of "Years of Service"?

Most simple calculators ask you to type in a round number of years, which throws away weeks or months of real entitlement. This calculator asks for your first day of work and last working day instead, and calculates your exact service period down to the day — so a partial year (say, 4 years and 7 months) is credited accurately rather than rounded down to 4 years.

How to Use the Gratuity Calculator UAE

Step-by-Step Guide:

  1. Enter Monthly Basic Salary (AED): Your base salary only — excluding housing, transport, and other allowances, per UAE Labour Law Article 134.
  2. Select Contract Type: Limited (standard for all UAE employment since February 2023) or Unlimited (legacy contracts issued before that date).
  3. Enter First Day of Work and Last Working Day: Your actual employment dates. The calculator works out your exact service period from these.
  4. Select Reason for Leaving: Resignation, termination without cause, or dismissal for gross misconduct under Article 120. This only changes the result for Unlimited Contract resignations and Article 120 dismissals.
  5. Calculate: Click "Calculate Gratuity" to see your entitlement with a full breakdown of how it was worked out.

Understanding Gratuity Rates Under UAE Labour Law

Gratuity Calculation Formula

Standard entitlement = (Basic Salary ÷ 30) × Gratuity Days, where Gratuity Days = 21 × years (for years 1-5) plus 30 × years beyond 5, capped at 730 days. On a legacy Unlimited Contract, resigning reduces this to 1/3 of the entitlement for 1-3 years of service and 2/3 for 3-5 years, before reaching the full entitlement at 5+ years.

Limited vs Unlimited Contract - Gratuity Comparison

Limited Contracts (Current Standard)

Limited Contracts have been the only standard employment contract type in the UAE since February 2023. Key points for gratuity:

Unlimited Contracts (Legacy)

Unlimited Contracts were phased out for new hires in February 2023 but still apply to some employees hired before that date. On a legacy Unlimited Contract, resignation reduces your entitlement:

Years of ServiceResignationTermination (without cause)
Less than 1 yearNo gratuityNo gratuity
1 - 3 years1/3 of entitlementFull entitlement (21 days/yr)
3 - 5 years2/3 of entitlementFull entitlement (21 days/yr)
5+ yearsFull entitlementFull entitlement (21 days/yr + 30 days/yr after year 5)

This reduction only applies to resignation on a legacy Unlimited Contract. If you are terminated rather than resigning, you receive the full standard entitlement regardless of contract type.

Can Gratuity Be Denied? (Article 139)

Gratuity is a legal entitlement, but it can be forfeited entirely under Article 139 of UAE Labour Law in specific circumstances:

Outside of these specific situations, an employer cannot lawfully withhold your gratuity. If you believe your gratuity has been unfairly denied or reduced, you can raise a complaint with MOHRE.

Gratuity Calculation Examples

Example 1: Limited Contract, Resigned After 6 Years

Scenario: Basic Salary: AED 8,000 | Service: exactly 6 years | Limited Contract | Resignation

Example 2: Unlimited Contract, Resigned After 3 Years

Scenario: Basic Salary: AED 5,000 | Service: exactly 3 years | Unlimited Contract | Resignation

If the same employee had been terminated instead of resigning, they would receive the full AED 10,500.30 — this is exactly the kind of difference this calculator is built to capture correctly.

Frequently Asked Questions - Gratuity Calculator UAE

❓ How is gratuity calculated in the UAE?
Gratuity is based on your last basic monthly salary and total days of service. You earn 21 days of basic salary for each of your first 5 years of service, and 30 days of basic salary for each year beyond that. The total is capped at 2 years' salary (730 days), and this calculator applies the exact formula to the days between your join date and last working date.
❓ Do I get full gratuity if I resign on a limited contract?
Yes. Since the UAE moved to Limited Contracts as the standard in February 2023, employees who resign after completing at least one year of service receive their full gratuity calculated at 21 days per year for the first 5 years and 30 days per year after, with no reduction for resigning.
❓ What happens to gratuity if I resign from an unlimited contract?
On a legacy unlimited contract, resigning reduces your gratuity: you receive one-third of the entitlement for 1-3 years of service, two-thirds for 3-5 years, and the full entitlement only after 5 years of service. This reduction does not apply if you are terminated rather than resigning.
❓ Can an employer refuse to pay gratuity in the UAE?
Yes, in limited cases under Article 139 of UAE Labour Law: if you are dismissed for a serious offence such as fraud, using a false identity, or a fundamental breach of contract, or if you resign without serving the required notice period, or if you leave before completing one year of service. Outside of these specific cases, gratuity is a legal entitlement and cannot be withheld.
❓ Is there a maximum limit on UAE gratuity?
Yes. Regardless of how many years you have worked, total gratuity cannot exceed 2 years of basic salary (730 days). This calculator automatically applies that cap to your result.
❓ Does gratuity use my basic salary or my full salary?
Gratuity is calculated only on your basic monthly salary, excluding housing allowance, transport allowance, and other benefits. If your offer letter lists a gross salary, check your contract for the basic salary component, since using the gross figure will overstate your gratuity.
❓ How many years of service do I need before I'm eligible for gratuity?
You need at least one full year of continuous service. If your employment ends before completing one year, no gratuity is payable under UAE Labour Law, regardless of whether you resigned or were terminated.
❓ When should gratuity be paid after leaving a job?
MOHRE guidelines require your full and final settlement, including gratuity, to be paid within 14 days of your last working day. If payment is delayed beyond this, you can raise a complaint with MOHRE.
❓ Do leaves of absence affect gratuity calculation?
Authorized leave (annual leave, sick leave) counts as service time and does NOT reduce your gratuity. Extended unpaid leave not approved by your employer may reduce the effective service period counted toward gratuity. Always verify your leave records with HR.
❓ Can employers deduct amounts from gratuity payment?
Under Article 135 of UAE Labour Law, employers may deduct legitimate amounts from your gratuity, such as loans or advances specified in your employment agreement. These deductions must be reasonable and documented. Unjustified deductions can be reported to MOHRE.

Important Information About Gratuity

MOHRE Compliance and Labour Law

This calculator follows the formulas published by MOHRE (Ministry of Human Resources and Emiratisation) and Federal Decree-Law No. (33) of 2021 and its amendments.

Full and Final Settlement Components

Your full and final settlement includes more than just gratuity. It may also include:

Gratuity for Expatriates vs UAE Nationals

The gratuity calculation method is the same for both expatriate employees and UAE nationals working in the private sector, with no nationality-based differences under current UAE Labour Law.

Contacting MOHRE for Verification

If you have disputes about your gratuity calculation or full and final settlement, you can contact MOHRE through their official website or the 80060 hotline.