UAE Labour · End of service

UAE Gratuity Calculator

Plan end-of-service gratuity using educational federal-style rules: basic÷30, under one year = 0, 21 days/year for first five years, 30 days thereafter, capped at two years’ basic.

Estimate gratuity

Estimated gratuity
AED 0.00

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

  1. Enter your basic monthly salary — not total package.
  2. Enter completed years and any additional months of service.
  3. Enter unpaid absence days if applicable.
  4. Tap Calculate to see the estimated gratuity and daily-rate breakdown.
  5. Check whether the 24-month cap applies if you have long tenure.
  6. Confirm the figure against your contract and HR before resigning.

Worked examples

2 years, AED 8,000 basic

266.67/day × 21 days × 2 years ≈ AED 11,200.

6 years, AED 12,000 basic

5 years at 21 days plus 1 at 30 days, at AED 400/day ≈ AED 54,000.

15 years, AED 20,000 basic

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.

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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.