UAE Gratuity Calculator

What’s gratuity in the UAE?

Consider gratuity a “thank you” payment from your employer when you leave a job. Under UAE law, it’s a mandatory end-of-service benefit for private sector employees. You’re entitled to it only if you’ve worked for the same company for at least one full year. It’s calculated solely on your basic salary excluding allowances like housing or transport, following the rules of UAE Labour Law (Federal Decree-Law No. 33 of 2021). This rule applies to all expat employees in the private sector. For UAE nationals in the private sector, they are typically covered by the

Q: How do I actually calculate my gratuity?

Here’s the breakdown: First 5 years: You get 21 calendar days of basic salary for each year. After 5 years (from year 6 onward), it goes up to 30 calendar days per year. Formula: (Basic Monthly Salary ÷ 30) × (applicable days) × (years of service) Important: The total can’t be more than two years’ worth of your basic salary. If you’ve put in only part of a year, that period gets calculated proportionally.

Who gets gratuity in the UAE?

Most expats working in the UAE private sector under a standard labour contract qualify after one full year with the same employer. UAE nationals in the private sector, however, are usually covered by the GPSSA pension scheme instead. Domestic workers and free zone employees may have different rules, but they still generally get some form of end-of-service benefit.

How can I calculate my gratuity easily?

You can figure it out by hand: just take your basic salary, divide it by 30, and that gives you your daily wage. Multiply by 21 for each of the first 5 years, then by 30 for each year beyond that. Add them up, and make sure it doesn’t exceed two years of basic salary. Or, just use a free online UAE Gratuity Calculator, which does all the math for you in seconds, giving you a year-by-year breakdown without asking for any personal info or registration.

What’s that gratuity calculator tool?

You can use this free online tool, which runs on the official MOHRE formula. Simply enter your basic salary, start and end dates, contract type, and reason for leaving. From there, the tool calculates your total service length and applies the correct gratuity rates. Once done, it shows your full gratuity in AED, along with a detailed year-by-year breakdown. No sign-up or personal info needed.

Do I still get gratuity if I’m fired?

Sure, as long as you’ve put in at least one full year. Just know that you still get the full amount unless you were let go for serious misconduct like fraud, assault, or leaking trade secrets, which is spelled out in Article 44 of the labor law. If the company ends your contract, whether for redundancy, restructuring, or simply not renewing it, they’re required to pay your full gratuity within 14 days of your last day at work.

What if I resign instead of being fired?

Under the current UAE Labour Law (post-February 2022), resigning after finishing one year of service and serving your notice period still gives you full gratuity. The old rule, where resigning early cut your gratuity, no longer applies to new contracts.

Do I have to pay tax on my gratuity?

Nope, not a single dirham. Gratuity is completely tax-free in the UAE. Since there’s no personal income tax here, your gratuity is treated as an employment benefit, so you won’t owe anything on it. You get the full lump sum.