Accurate Online Gratuity Calculator UAE 2026 (MOHRE Updated)

Whether you are looking for a Gratuity Calculator Dubai or Abu Dhabi, our tool covers all Emirates…

UAE Gratuity Calculator

Employment Details

Contract Type

Legacy note: issued before Federal Decree-Law No. 33 of 2021.

Understanding your End-of-Service Benefits (EOSB) is essential, If you’re working in the UAE. However, many online gratuity calculators are confusing, outdated, or provide inaccurate estimates. We felt that United Arab Emirates workers deserved something much better than that guesswork, So we built this Gratuity Calculator UAE. Based on the latest MOHRE labour laws, it helps you to estimate your gratuity quickly and accurately using your employment details. Our goal is simple to make end-of-service calculations easier, reliable, and stress free, so you can better understand your gratuity with confidence.


How Does the Calculator Estimate Your EOSB?

Our gratuity calculator is simple and easy to use. Just follow these steps to estimate your end-of-service calculation in the United Arab Emirates.

  1. Input your basic monthly salary

    Exclude housing, transportation, bonuses, and other allowances.

  2. Select the first working day

    Choose the date when your employment started.

  3. Select your last working date

    Choose the date when your employment ended or is expected to end.

  4. Choose the reason for leaving

    Select whether you resigned or your employment was terminated.

  5. Select the type of your contract

    Choose whether your contract is Limited or Unlimited.

  6. Click the “Calculate” button

    The calculator instantly estimates your end-of-service gratuity.

Tips for More Accurate Results

  • Enter your basic salary only, not your total monthly compensation.
  • Double-check your employment dates before calculating.
  • Make sure the information matches your employment contract and payroll records.

Online gratuity calculators provide estimated results only. Your actual end-of-service gratuity may vary depending on UAE Labour Law, your employment contract, unpaid leave, and other factors considered by your employer. For accurate guidance, consult a qualified HR professional or legal advisor.

Features in Our End of Service Calculator

100%
Free to Use
Article 51
UAE Labour Law Compliant
English & Arabic
Language Support
PDF
Report Download

What Is a Gratuity Calculator UAE?

Gratuity Calculator UAE is an online tool that automatically estimates an employee’s End-of-Service Benefits (EOSB) under UAE Labour Law for employees working in Dubai, Abu Dhabi, and all other emirates.

Basic Monthly Salary
Enter your basic salary only (excluding most allowances).

Employment Contract
Select whether your contract is Limited (Fixed-Term) or Unlimited.

Employment Dates
Choose your employment start date and last working day.

Reason for Leaving
Select whether you resigned or your employment was terminated.

After entering these details, the calculator estimates your gratuity based on the applicable provisions of the UAE Labour Law and provides an instant estimate of your End-of-Service Benefits.

How Is Gratuity Calculated in the UAE? (Formula + Example)

We calculate gratuity in the UAE based on an employee’s basic salary, excluding allowances such as housing and bonuses, and the total length of continuous service.

Gratuity Formula (According to UAE Labour Law)

  • 21 days’ basic salary for each year of service during the first five years.
  • 30 days’ basic salary for each additional year of service after five years.
Daily Basic Salary = Basic Monthly Salary ÷ 30

Calculation Summary

  • Basic Monthly Salary: AED 12,000
  • Service Length: 6 Years
  • Daily Basic Salary: AED 400
  • First 5 Years Gratuity: AED 42,000
  • 6th Year Gratuity: AED 12,000
Worked Example
Basic Monthly Salary
AED 12,000
Service Length
6 Years
Step 1

AED 12,000 ÷ 30 = AED 400 per day

Step 2

21 days × 5 years = 105 days
105 × AED 400 = AED 42,000

Step 3

30 days × 1 year = 30 days
30 × AED 400 = AED 12,000

Total Estimated Gratuity = AED 54,000
Important: Under UAE Labour Law, the total gratuity cannot exceed 2 years’ total basic salary.

Who is Eligible for Gratuity in the UAE?

Employees who have completed at least one year of continuous service with the same employer are generally eligible for end-of-service gratuity, provided they meet the legal requirements.

Years of Service Gratuity Entitlement
Less than 1 year No gratuity
1 – 5 years 21 days’ basic salary per year
More than 5 years 30 days’ basic salary per year (for years beyond 5)

Types of Employment Contracts in the UAE

An employment contract sets the terms between you and your employer. Under current UAE law, fixed-term contracts are now standard. But if you were hired before the law changed, you might still be on an old-style ‘unlimited’ contract here’s the difference:

Icon comparing fixed-term and legacy unlimited employment contracts in the UAE
1

Fixed-Term (Limited) Contract

It has an explained start and end date and can be renewed or extended by mutual agreement between the employer and employee.

2

Unlimited Contract

In Unlimited Contract there is an employment agreement that does not have a fixed end date. Instead of ending on a specific date, the contract continues until either the employer or the employee decides to terminate it by following the notice period and other applicable employment terms.

Remember: If you’re using our Gratuity Calculator UAE, select the type of contract that matches your employment agreement to receive your EOSB estimate.

Does Gratuity Work Differently for Fixed-Term vs Unlimited Contracts?

It depends on how you leave the job.

01

Fixed-Term Contract

The math stays the same no matter how it ends—termination, contract expiry, or resignation.

First 5 Years 21 days’ basic salary per year
After 5 Years 30 days’ basic salary per year
02

Legacy Unlimited Contract

Only applies if you signed before Federal Decree-Law No.33 of 2021 and resigned.

Years of Service Entitlement
Under 3 years 1/3 of standard gratuity
3–5 years 2/3 of standard gratuity
Over 5 years Full gratuity
Every Other Situation

Fixed-Term contracts of any kind, plus terminations and contract-end cases for Unlimited contracts, receive the full 21/30-day gratuity formula. No reductions.

Worked Example: 5 Years of Service

AED 10,000
AED 333.33
21 × 5 Years
AED 35,000

This example works the same whether you’re on a Fixed-Term or Legacy Unlimited contract because both reach the 5-year mark. If you resigned under a Legacy Unlimited contract before completing 5 years, the reduced entitlement shown above would apply.

Benefits of using an Online Gratuity Calculator UAE?

Using an online gratuity calculator offers an instant and easiest way to estimate your end of service benefits without performing manual calculations. 

Save Your Time

Quickly calculate your estimated UAE gratuity in seconds without performing manual calculations.

Reduce Calculation Errors

The calculator follows the UAE Labour Law gratuity formula to minimize common calculation mistakes.

Easy to Use

Unlike many online calculators, this tool provides a detailed breakdown of your End-of-Service Benefits (EOSB).

Available Anytime

Use the calculator whenever you need it from your desktop, tablet, or mobile device.

Understand Your Benefits

Adjust your salary or years of service to see how each factor affects your estimated gratuity.

Support Financial Planning

Estimate your gratuity in advance to help plan future expenses, savings, or investments.

Verify Employer Calculations

Compare your estimated gratuity with the amount provided by your employer for added confidence.

Effects on Gratuity if you Resign or Terminated by Employer

Whether you resign or your employer ends your contract, you may still be owed gratuity as long as you meet the basic requirements. That said, three things shape your final number: how long you worked, why you left, and whether you served your notice period.

Once your employment ends, your labour card is also cancelled as part of the same process worth checking that it’s been processed correctly.

Scenarios of Termination or Resignation in the UAE

ScenariosGratuity
Resignationpayable if eligible under UAE gratuity Law.
Termination by Employer (With Notice)payable if you meet requirments under UAE gratuity rules.
Termination by Employer (Without Notice)Depends on rules and work facts

Calculate Gratuity Across All UAE Emirates

Our UAE Gratuity Calculator can be used by employees working in all seven emirates, including:

Dubai Abu Dhabi Sharjah Ajman Ras Al Khaimah Fujairah Umm Al Quwain
Note: The gratuity calculation method follows the same UAE Labour Law formula across all seven emirates.

Free Zone Employees in UAE

DIFC and ADGM run their own rules. If you work in one of these free zones, your gratuity or savings scheme may work differently than the standard UAE Labour Law.

Icon showing continuous service carrying over during UAE employment contract renewal

Employment Contract Renewal in the UAE

Renewing your employment contract with the same employer does not reset your length of service,under the new UAE Labour Law. Your service is treated as continuous, and your end-of-service gratuity is calculated based on your total years of continuous employment, including both the original and renewed contract periods.

In this image the gratuity calculator uae showing protection in the UAE with one exception for gross misconduct

Can an Employer Deny Gratuity in the UAE?

Once you’ve completed one year of service, your employer can’t withhold your gratuity it’s a legal right. The only exception is termination for gross misconduct under Article 120 (e.g. fraud, serious breach of duty), where gratuity may be forfeited. Otherwise, resignation or termination, your gratuity is protected.

Key UAE Labour Law Rules for Gratuity

Understanding the key gratuity rules under the UAE Labour Law can help you estimate your end-of-service benefits more accurately. Here are the three important rules every employee should know before calculating gratuity.

01

What is the Maximum Gratuity Limit in UAE?

The total gratuity amount cannot exceed the equivalent of two years’ wage. Even if your calculated gratuity is higher, the maximum payable amount is capped under the New UAE Labour Law.

02

When Is Gratuity Paid in the UAE?

Employers are usually required to settle an employee’s end-of-service benefits and other final dues within 14 days from the end of the employment contract.

03

What Counts as Basic Salary in UAE?

Gratuity is calculated using your basic salary only. When calculating your end-of-service gratuity, you do not include allowances such as housing, transport, food, bonuses, commissions, and other benefits.

Alternative Gratuity Scheme in the United Arab Emirates

The UAE has developed an Alternative Scheme of End-of-Service Benefits. This is a voluntary scheme whereby qualifying companies can contribute monthly to an approved investment fund instead of a standard lump sum gratuity.

What Is Alternative Gratuity Scheme in UAE?

The employer pays monthly based on the worker’s basic salary. When the employee leaves the company, they receive a payout of the fund balance.

Advantages for Employees

  • The employer contributes on a monthly basis.
  • Investment income.
  • Manage money professionally.
  • More financial security.
Source: Cabinet Resolution No. 96 of 2023 Regarding the Optional Alternative End-of-Service Benefits System, Ministry of Human Resources and Emiratisation (MOHRE).

Gratuity for Domestic Workers in the UAE

Nannies, housekeepers, cooks, gardeners, drivers, and other domestic workers in the UAE aren’t covered by the Labour Law this calculator runs on they fall under Federal Decree-Law No. 9 of 2022 instead. Different law, different math.

That means the gratuity formula on this page won’t give you the right number. Domestic worker end-of-service pay follows its own rules, not Article 51. Check the latest MOHRE guidance, or ask your employer or an HR professional to explain how your gratuity is calculated.

Important: This calculator is designed for private-sector employees covered by the UAE Labour Law. If you’re a domestic worker, this calculator does not apply to your employment.

Check our detailed guide on Labour Law for Domestic Workers in the UAE →

What is Final Settlement Calculation in the UAE

A final settlement is the total amount you will receive when your employment is about to end. It combines your End of Service Gratuity,Unpaid salary,adds unused leaves,notice period pay and minus any remaining debts or deductions 

Example Calculation of Final Settlement in UAE

For Example: If your gratuity is AED 10,000 and the unpaid salary is AED 3,000, and your unused leave salary is worth AED1,000, so your total final settlement would be AED 14,000 (before any applicable deductions).

Learn more: Complete Final Settlement Calculation in the UAE Guide.

Expert Tips to Maximize Your Gratuity in the UAE

01

Complete at least one year of continuous service.

02

Calculate gratuity always on your basic pay.

03

Keep your employment records updated.

04

Review your final settlement before you accept it.

05

Know your contract before resigning.

06

Monitor your unused annual leave and pending dues.

07

Always use the latest Gratuity Calculator.

08

If your calculation is contested, get professional help.

Final Note

Always keep a copy of your employment contract, salary records, and final settlement statement. These documents can help you verify that your gratuity has been calculated correctly.

Frequently Asked Questions

Does unpaid leave affect gratuity in the UAE?

Yes. The Unpaid leave directly affects your gratuity calculation in UAE. Under the latest UAE Labour Law, unpaid leave is generally not counted as part of your continuous service period.

Can I calculate gratuity using my total salary?

No, in UAE gratuity is calculated by using your basic salary, not your total monthly salary that includes allowances such as housing or transport.

Does probation count towards gratuity?

If you completed at least one year of continuous service with the same employer,time spent on probation may count towards your total service.

Can I calculate gratuity before leaving my job?

Yes. You can estimate your gratuity before resigning or completing your contract by entering your expected last working day into the calculator.

Does working in a UAE Free Zone change my gratuity?

Working in a UAE Free Zone generally does not change your gratuity, most UAE Free Zones follow the federal gratuity rules. However, some financial free zones such as DIFC and ADGM have separate employment regulations.

Can I use this Calculator for Dubai and Abu Dhabi?

Yes,Our Gratuity Calculator UAE can be used for the employees working in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain under the UAE Labour Law.

Is this UAE Gratuity Calculator free to use?

Yes, this calculator is free to use. You can estimate your end of service benefits online as many times you want to use the calculator.

Why is my gratuity different from my employer’s calculation?

Calculation Differences may happen because of different basic salary, employment dates, unpaid leave, contract details, and other factors considered during the final settlement.

What documents do I need to calculate gratuity?

To accurately estimate your gratuity, you should have the employment contract, basic monthly salary, joining date and last working day and any unpaid leave details.

Is this calculator suitable for private sector employees only?

Yes. This calculator is for employees covered by the UAE Labour Law. Different rules may apply to government employees or employees covered by different systems of employment.

Sources & References

We regularly review publicly available information from official UAE government sources, including:

  • Ministry of Human Resources and Emiratisation (MOHRE)
  • Federal Decree-Law No. 33 of 2021
  • Cabinet Resolution No. 1 of 2022
  • Cabinet Resolution No. 96 of 2023 (Alternative End-of-Service Benefits Scheme)

Note: This calculator provides estimates only. Your employer’s final calculation may differ depending on your employment records and applicable labour regulations.

Last Updated: September 2026 by Gratuity Calculator UAE Team We research and track UAE Labour Law updates from MOHRE to keep this calculator accurate and up to date.

In Conclusion

Knowing how the UAE Labour Law (Federal Decree-Law No. 33 of 2021) calculates end-of-service gratuity can help you estimate your gratuity accurately and avoid common mistakes when your employment ends. By using our Gratuity Calculator UAE, entering the correct employment details, and carefully reviewing your final settlement, you can better understand your gratuity rights before leaving your job.

Based on the latest UAE Labour Law, our calculator provides a fast and accurate gratuity estimate whether you work in Dubai, Abu Dhabi, Sharjah, or any other emirate. If you have any questions about gratuity calculations, eligibility, or your final settlement, we’re here to help you understand your end-of-service benefits.

Need help with your gratuity calculation or final settlement? Our team is happy to assist you.
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