Estimate your UAE end-of-service gratuity using your basic salary, years of service, unpaid absence, and final settlement deductions. Built for private-sector employees and expats planning a job change in Dubai, Abu Dhabi, Sharjah, and across the Emirates.
A UAE gratuity payment can be one of the largest lump sums an employee receives at the end of a job. For many expats it is the bridge between roles, a relocation fund, a debt-clearance tool, or the savings boost that makes several years in the Emirates financially worthwhile. Yet a surprising number of employees do not know how their gratuity is calculated until their final settlement arrives. This calculator gives you a clear planning estimate before you resign, accept a new offer, or negotiate your exit.
The calculation is based on the standard UAE private-sector end-of-service benefit formula: daily basic wage multiplied by 21 days for each of the first five years of eligible service, then 30 days for each year beyond five, subject to the statutory cap. Because your actual settlement can also include unpaid salary, leave encashment, notice pay, company loan deductions, damaged asset deductions, or special savings-scheme arrangements, the tool separates your statutory gratuity from optional final-settlement adjustments.
Enter your last basic salary, eligible service, and settlement adjustments to estimate your gratuity in AED.
Use basic salary only, not housing, transport, commission, school fees, or other allowances.
Enter your details and click calculate to see your estimated end-of-service benefit and final settlement impact.
Daily basic wage = monthly basic salary รท 30. Eligible service below one year gives no standard gratuity. From one to five years, the estimate uses 21 days of basic wage per eligible year. After five years, it uses 21 days for each of the first five years plus 30 days for each year beyond five. The result is capped at two years of basic wage.
These examples use basic salary only and exclude leave salary, notice pay, and deductions.
Daily basic wage is AED 166.67. Two years at 21 days per year equals 42 gratuity days.
Estimated gratuity: AED 7,000Five full years at 21 days per year gives 105 gratuity days.
Estimated gratuity: AED 35,000First five years count at 105 days, then three extra years count at 90 days.
Estimated gratuity: AED 97,500Long service can create a large entitlement, but the two-year wage cap must always be checked.
Estimated gratuity: AED 190,000A practical explanation for private-sector expats calculating final settlement in the UAE
End-of-service gratuity is a statutory benefit intended to reward continuous service when an employment relationship ends. In simple terms, it is a lump-sum payment linked to your last basic salary and the length of time you worked for the employer. It is separate from your monthly salary, leave balance, reimbursement claims, bonus, commission, or final month pay. That separation matters because many employees mentally combine all final settlement items together and then become confused when the employerโs calculation looks different from their expectation.
The most important rule is that gratuity is calculated on basic wage, not total package. If your offer letter says AED 18,000 total package made up of AED 10,000 basic salary, AED 6,000 housing allowance, and AED 2,000 transport allowance, the gratuity calculator should use AED 10,000. This is why UAE salary structure matters. A package with a high basic salary creates a larger future gratuity, while a package that pushes most pay into allowances can reduce the end-of-service benefit even when the total monthly take-home is the same.
For a standard private-sector full-time employee who has completed at least one year of continuous eligible service, the first part of the calculation is straightforward. Divide your last basic monthly salary by 30 to get your daily basic wage. Then multiply that daily wage by the number of gratuity days earned. For the first five years, the employee earns 21 days of basic wage for each year. For service beyond five years, the employee earns 30 days of basic wage for each additional year. If the employee has completed more than a full year but also has extra months or days, the extra period is calculated proportionally.
For example, an employee with AED 12,000 basic salary and four years of eligible service has a daily basic wage of AED 400. Four years at 21 days per year gives 84 gratuity days, so the estimated gratuity is AED 33,600. If the same employee worked seven years, the first five years would give 105 days and the two extra years would give 60 more days, for a total of 165 days. At AED 400 per day, the estimated gratuity would be AED 66,000 before any final settlement adjustments.
A common question is whether someone who worked eight, ten, or eleven months receives a partial gratuity. Under the standard private-sector rule, an employee who has served for less than one year is not entitled to gratuity. This can be frustrating for employees leaving close to their first anniversary, but it is the bright-line threshold in the ordinary calculation. Once the employee completes one continuous year, later parts of the year can be counted proportionally. That is why the calculator has separate fields for completed years, extra months, and extra days but still returns zero gratuity when eligible service is below one year.
Unpaid absence can reduce eligible service. The practical effect is that days when you were absent without pay may not count toward the service period used for gratuity. This does not mean every normal paid leave day hurts your gratuity. Paid annual leave, public holidays, and normal paid employment periods are different from unpaid absence. The calculator includes an unpaid absence field so employees can make a more conservative estimate when they know that unpaid leave or absence days occurred during the employment period. If there is a dispute over which days should be excluded, you should compare the employerโs records with your own payslips, leave approvals, and HR correspondence.
The law also places a cap on the gratuity amount. In all cases, the total gratuity should not exceed the wage of two years. For most employees the normal 21/30-day formula will stay below this ceiling, especially during the first decade of service. The cap becomes more relevant for very long service periods or high basic salary roles. This calculator automatically compares the formula result with two years of basic wage and uses the lower figure as the estimated statutory gratuity. It also shows the cap separately so you can understand whether it affected your result.
Many older online discussions mention reduced gratuity for employees who resign before completing five years. Those references often come from the pre-2022 unlimited-contract system and can be misleading for current calculations. Under the modern standard private-sector formula, the core calculation focuses on eligible service, basic wage, and the 21/30-day bands. However, the circumstances of termination can still affect the wider final settlement. For example, notice period, contractual obligations, disciplinary termination, company loans, damaged assets, or unreturned equipment can influence what is paid after gratuity is calculated. That is why the tool allows you to enter deductions separately instead of applying outdated resignation fractions automatically.
Your final settlement is usually bigger and more detailed than gratuity alone. It may include unpaid salary up to the last working day, leave salary for unused annual leave, notice pay, approved reimbursements, air ticket entitlement if your contract provides it, bonus or commission if due, and statutory gratuity. It may also include deductions for salary advances, employee loans, company property, excess leave, training costs where contractually valid, traffic fines on a company vehicle, or other agreed liabilities. A good UAE gratuity calculator should help you separate these categories rather than treating the whole final settlement as one number.
This page is designed primarily for standard UAE private-sector employees. Government employees, domestic workers, employees in certain financial free zones, and workers covered by special employment rules may have different arrangements. Some employers may also participate in an approved alternative end-of-service savings scheme where employer contributions are invested instead of the traditional gratuity being accrued in the same way for future service. If your contract mentions DIFC, ADGM, an alternative savings scheme, a pension-style plan, or a free-zone-specific employment regulation, use this calculator as a general comparison only and check the exact rules that apply to your employment relationship.
Start with the contract and payslip. Identify your basic salary, not your total gross salary. Then confirm your start date, last working day, unpaid absence days, and whether any service period was interrupted. Calculate the daily wage by dividing basic monthly salary by 30. Apply the 21-day rate for the first five years and 30-day rate after that. Compare the result with the employerโs gratuity line item, not with the entire settlement. Differences often come from using the wrong salary figure, excluding unpaid absence, ignoring partial months, applying old resignation rules, or mixing leave salary into the gratuity figure.
If the difference is small, ask HR for the calculation worksheet and compare assumptions. If the difference is material, request a written explanation before signing a final settlement acknowledgment. Keep copies of your contract, salary certificates, payslips, leave records, resignation letter, termination letter, and any email that confirms salary structure. Clear records help resolve most disputes quickly, and they are essential if you need formal advice.
Before resigning, calculate your expected gratuity and final settlement under several scenarios. Check whether waiting a few extra weeks would complete an additional year or reduce uncertainty around leave encashment. Review your loan obligations, credit card payments, rent cheques, visa cancellation timing, Emirates ID status, and health insurance coverage. If you are moving to a new employer in the UAE, ask whether the new company will cover visa costs, medical insurance, relocation allowance, or joining-ticket expenses. A gratuity payment can disappear quickly if it is used to cover a gap between jobs, so plan the cash flow before the resignation letter is submitted.
When comparing UAE job offers, do not look only at total monthly package. A higher basic salary can increase gratuity, leave encashment, and sometimes other employment-linked benefits. A lower basic salary with large allowances may feel attractive each month but can reduce the lump sum you receive after several years. This is especially important for employees planning a long UAE stay. A difference of AED 3,000 in basic salary can create thousands of dirhams of difference in gratuity over a five-year period. Use this calculator during salary negotiation, job-offer comparison, and exit planning so your decision reflects both monthly income and end-of-service value.
Use this quick checklist to avoid common end-of-service mistakes
Use the last basic monthly salary shown in your contract or payslip. Do not include allowances unless your employer has clearly classified them as basic wage.
Confirm your joining date, last working day, probation history, renewed contracts, and unpaid absence days before accepting the service period used by HR.
Ask for gratuity, leave encashment, unpaid salary, notice pay, and deductions to be shown as separate lines so you can verify each amount.
Company loans, salary advances, damaged property, or other deductions should be documented. Do not ignore unexplained deductions.
Save your contract, payslips, resignation or termination letter, settlement worksheet, and bank transfer proof for future reference.
If your employerโs calculation is far below your estimate, request clarification before signing and contact the relevant authority or a qualified adviser if needed.
Quick answers to common end-of-service benefit searches
UAE gratuity is generally calculated from your last basic salary. Divide monthly basic salary by 30 to get daily wage. For one to five years of eligible service, multiply daily wage by 21 days for each year. For service beyond five years, add 30 days for each additional year. The total gratuity is capped at two years of wage.
The standard calculation uses basic salary, not the total package. Housing allowance, transport allowance, utility allowance, school allowance, commission, and similar additions are normally excluded unless your employment documents define them differently. Always check the salary split in your contract and payslip.
For current standard private-sector estimates, the core formula is based on basic salary and eligible service after completing at least one year. Older resignation-reduction rules are a common source of confusion. Your wider final settlement can still be affected by notice period, deductions, contract obligations, or special employment rules.
Under the standard private-sector rule, less than one year of service does not qualify for gratuity. Once one continuous year is completed, partial additional years can be calculated proportionally. This is why the calculator returns zero if eligible service is below one year.
Unpaid absence days may be excluded from the service period used for gratuity. Paid annual leave is different. Use the unpaid absence field only for days that were not paid and should conservatively be removed from eligible service.
Use this page mainly for standard UAE private-sector estimates. DIFC, ADGM, government roles, domestic worker arrangements, pension schemes, and alternative savings schemes may follow different rules. Check the employment framework written in your contract before relying on any calculator result.
Check your employment contract, salary certificate, recent payslips, leave balance, resignation or termination letter, settlement worksheet, and any deduction evidence. Ask HR for a breakdown if the gratuity, leave encashment, or deductions are combined into one unexplained number.
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This UAE Gratuity Calculator provides an informational estimate only. It is not legal advice, tax advice, or a substitute for confirmation from MoHRE, your free-zone authority, your employer, or a qualified professional.
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