Estimate gratuity
Note: Educational estimate for planning. Confirm final amounts on official channels.
What this UAE Gratuity Calculator does
Gratuity runs on basic salary only — not total package, which is where most disputes start when someone mentally calculates off their full monthly pay. Daily rate = basic ÷ 30. Zero under one year. 21 days a year for the first five years. 30 days a year after that. Capped at 24 months' basic.
The two rules that trip people up: the rate changes after year five, and the cap kicks in for long-tenured staff. Both change the answer meaningfully versus a flat "days times years" guess.
Why people search for UAE Gratuity Calculator
One of the most consistently searched UAE labour topics, because gratuity is owed to nearly every private-sector employee at contract end, and the basic-only rule genuinely surprises people.
Heaviest during resignation planning, where an accurate number changes the timing calculus.
How UAE gratuity works (educational)
Daily rate = basic ÷ 30. First 5 years: 21 days/year at that rate. Beyond 5: 30 days/year. Subtract unpaid absence days from the service period. Cap the total at 24 months' basic regardless of actual years served past that.
How to use this calculator
- Enter your basic monthly salary — not total package.
- Enter completed years and any additional months of service.
- Enter unpaid absence days if applicable.
- Tap Calculate to see the estimated gratuity and daily-rate breakdown.
- Check whether the 24-month cap applies if you have long tenure.
- Confirm the figure against your contract and HR before resigning.
Worked examples
266.67/day × 21 days × 2 years ≈ AED 11,200.
5 years at 21 days plus 1 at 30 days, at AED 400/day ≈ AED 54,000.
Formula total exceeds the cap — capped at 24 months' basic = AED 480,000.
Tips to save money or avoid mistakes
- Use basic salary only. Including allowances overstates the result.
- The rate changes after year 5 — don't apply 21 days flat across a longer service period.
- Long-tenured? Check whether the 24-month cap applies before expecting an uncapped total.
- Unpaid leave days typically shrink the counted service period — enter them for accuracy.
Frequently asked questions
Basic salary or total package?
Basic salary only (basic ÷ 30 for the daily rate) — housing, transport and other allowances aren't included unless your contract specifically defines them as part of basic.
What if I've only worked 8 months?
Under one year of service, gratuity is AED 0 in this model, matching the standard UAE federal rule.
What's the difference between the 21-day and 30-day rules?
Your first five qualifying years accrue at 21 days per year; every year after that accrues at 30 days per year, both subject to the 24-month basic-salary cap.
Do unpaid absence days reduce my gratuity?
This calculator deducts unpaid absence days from your counted service period — confirm the exact treatment with HR or legal counsel for your specific case.
Why did my long-tenure result get capped?
UAE gratuity is capped at 24 months' basic salary regardless of how many years beyond that you've served — the calculator applies this cap automatically once the formula total exceeds it.
Do you store my numbers?
No. Calculations run in-browser. See our Privacy Policy for analytics and AdSense cookie details.
Related tools
Explore connected calculators to finish your UAE budget without dead-end pages.
Privacy & advertising disclosure
Calculations run locally in your browser. We may use Google Analytics (G-HDT8XHLXK2) and, when approved, Google AdSense (ca-pub-9886918406188712).
Third parties including Google may use cookies for ads/measurement. Read our Privacy Policy and How Google uses data.
Publisher pages: About, Contact, Disclaimer.
Disclaimer
Disclaimer: Educational estimate based on commonly cited UAE labour-law gratuity rules. Confirm on official portals before paying or filing. Not legal, tax, immigration or government advice. Not affiliated with UAE authorities.