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UAE Employment Benefits · Gratuity Planning

UAE End of Service Gratuity Calculator – Calculate Your Gratuity

UAE End of Service Gratuity Calculator – Calculate Your Gratuity using your last basic monthly salary, employment dates and unpaid leave. Estimate your end-of-service benefit in AED with a clear breakdown of the first five years, additional service and the applicable maximum.

Free Calculator · AED Results · Federal Private-Sector Model · No Registration

END-OF-SERVICE BENEFITS AED · Example
Example Gratuity · AED 8,000 Basic · 7 Years AED 44,000.00 Illustrative Calculation Before Adjustments
First Five YearsAED 28,000
Following Two YearsAED 16,000
✓ Basic Salary Calculation
◇ Service Date Inputs
↗ UAE Government References
▣ Mobile Friendly
Your Gratuity Estimate

UAE End of Service Gratuity Calculator – Calculate Your Gratuity Online

Enter your employment information to calculate an indicative gratuity amount under the standard UAE federal private-sector formula for eligible full-time foreign employees. The tool calculates service from dates, removes unpaid absence and applies the two-year wage ceiling.

Enter your basic wage, excluding housing, transport and other allowances.
If provided, used only for the two-year wage cap. Leave empty to use basic wage as a conservative cap assumption.
Optional adjustment. Do not enter disputed or unverified deductions.

This calculator assumes full-time foreign private-sector employment under the general federal gratuity rules. It does not determine employee classification, scheme membership or legal eligibility in exceptional cases. Service dates are counted inclusively, with one year approximated as 365 calendar days for the calculation.

Estimated Gratuity Payable

AED 44,000.00

Illustrative End-of-Service Entitlement

Daily Basic Wage AED 266.67
Counted Service 7.00 Years
Eligible First Five Years AED 28,000.00
Service Beyond Five Years AED 16,000.00
Gross Calculated Gratuity AED 44,000.00
Maximum Applicable Gratuity AED 192,000.00
Confirmed Deductions Applied AED 0.00
Unpaid Days Excluded 0 Days
Estimate based on standard full-time private-sector gratuity provisions. Confirm final entitlement and adjustments with the employer and relevant authority.
Understand Your Entitlement

UAE End-of-Service Gratuity Rules Explained

UAE Federal Decree-Law No. 33 of 2021 establishes a general end-of-service gratuity framework for eligible foreign employees in the private sector. The qualifying service period, basic salary and the number of completed years determine the starting amount.

Service Duration Calculation Rule Eligibility Important Detail
Less than 1 year No standard gratuity Not yet eligible At least one year of continuous service is required.
1 to 5 years 21 days of basic wage per year Eligible foreign workers Qualifying fractions of a year are calculated proportionately.
More than 5 years 21 days for the first 5 years; 30 days for subsequent years Eligible foreign workers The higher rate applies only to service after five years.
Maximum amount Two years of wage General statutory ceiling The tool uses total wage for this ceiling when supplied, otherwise basic wage as an assumption.
Unpaid absence Excluded from service All qualifying periods Count only applicable service after removing excluded absence.

Why the One-Year Minimum Matters

Under the standard federal rule, a foreign full-time employee who has worked continuously for less than one year does not qualify for statutory end-of-service gratuity. This does not automatically eliminate other employment entitlements, such as unpaid salary or outstanding contractual amounts.

Once the employee completes a qualifying year, fractions of subsequent years can generate proportionate gratuity. That makes accurate start and end dates important, particularly when leaving partway through a year.

Five Years Is the Main Calculation Threshold

The first five service years use 21 days of basic wage per year. Service beyond five years uses 30 days of basic wage per year for the additional period. The higher rate is not retrospectively applied to the initial five years.

Someone with eight qualifying years receives a first-five-year component and a separate three-year component. Both amounts are added before the relevant statutory ceiling is considered.

Formula And Calculation Method

How to Calculate UAE Gratuity Using Basic Salary

The standard calculation begins by finding a daily basic wage. For a monthly basic salary, this estimator divides the amount by 30 and then applies the appropriate statutory number of gratuity days.

The last basic salary is important because the gratuity calculation does not simply use the employee's total salary package. Housing allowances, transport allowances and similar benefits are not added to the basic wage used in the accrual formula.

UAE End-of-Service Gratuity Formula

Daily basic wage = Monthly basic salary ÷ 30

First five years = Daily basic wage × 21 × qualifying years up to 5

Additional years = Daily basic wage × 30 × qualifying years beyond 5

Gross gratuity = First five-year amount + Additional-year amount

Estimated payable gratuity = Lesser of gross gratuity and applicable cap, minus confirmed lawful deductions, subject to a minimum of zero.

The UAE End of Service Gratuity Calculator – Calculate Your Gratuity uses these components to provide an AED estimate. The tool does not assume that resignation reduces the applicable gratuity percentage under the current general federal framework.

Information Required for Your Calculation

Last basic monthly salary: The basic wage stated in your applicable employment records.

Joining date: The first day of qualifying employment with your employer.

Last service date: The date your employment service finishes, not necessarily the day you submit your resignation.

Unpaid absence: Days excluded from the qualifying service period under the law.

Total wage: Optional information used to model the statutory two-year wage ceiling, distinct from the basic-wage accrual formula.

Lawful deductions: Only amounts confirmed to be deductible under applicable law or a valid legal basis.

Easy Calculation Process

Calculate Your Gratuity in 3 Easy Steps

Use three simple steps to produce an initial estimate. Keep your employment contract and final payslip available so the figures correspond to your actual circumstances.

Enter Your Basic Salary

Type your last monthly basic wage in AED. Exclude allowances from the salary used to calculate the 21-day and 30-day components.

Choose Employment Dates

Select your first and last employment dates. Add unpaid days of absence so the tool can estimate the qualifying service period.

Review the AED Breakdown

Calculate gratuity and examine your daily wage, service duration, first-five-year amount, subsequent-year amount and cap adjustment.

Worked Gratuity Examples

UAE End-of-Service Gratuity Calculation Examples

These examples demonstrate how employee service duration changes the result. They assume the worker is eligible under the general federal rules, with no excluded unpaid leave or deductions.

Monthly Basic Salary Service Duration Calculation Estimated Gratuity
AED 6,000 1 Year 200 × 21 AED 4,200
AED 6,000 3 Years 200 × 21 × 3 AED 12,600
AED 8,000 5 Years (8,000 ÷ 30) × 105 AED 28,000
AED 8,000 7 Years First 5 years + next 2 years AED 44,000
AED 10,000 10 Years 35,000 + 50,000 AED 85,000
AED 5,000 6 Months Less than 1 qualifying year AED 0

Example: Employee With Three Years of Service

Consider an employee earning AED 6,000 in monthly basic salary. Their estimated daily basic wage is AED 200. At 21 days per year for three qualifying years, gratuity equals AED 12,600.

This example assumes all service is eligible, there are no unlawful interruptions in the qualifying period and no confirmed deductions. The amount represents gratuity only rather than a complete final settlement.

Example: Employee With Seven Years of Service

Suppose a worker earns AED 8,000 in basic monthly salary and completes exactly seven qualifying years. The first five years produce AED 28,000, while the remaining two years generate AED 16,000. The combined result is AED 44,000.

That example shows why a seven-year employee cannot simply multiply all service years by 30 gratuity days. The first five years retain the lower statutory calculation rate.

Example: Employee With Ten Years of Service

An employee whose final basic salary is AED 10,000 has a daily basic wage of approximately AED 333.33. Five years at 21 days produce AED 35,000. The additional five years at 30 days produce AED 50,000, resulting in AED 85,000.

The result remains subject to the statutory ceiling, applicable employment rules and any permitted deductions. Employees should avoid using rounded daily pay in intermediate calculations because repeated rounding can slightly change the final amount.

What Changes Your Gratuity?

Important Factors Affecting UAE End-of-Service Pay

Two employees may receive different gratuity amounts even if they have similar job titles or overall salary packages. The applicable legal framework and employment record determine the result.

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Basic Salary

The final basic wage is the primary monetary input in the standard formula. Allowances ordinarily excluded from basic wage should not be treated as gratuity earnings.

📅

Service Duration

Qualifying years and fractions of a year affect the result. A different final employment date can alter the service component.

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Unpaid Leave

Unpaid absence excluded from service reduces the time used in the calculation. Enter the applicable number of days carefully.

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Employment Framework

Federal mainland employment, some free zones and financial free-zone employment can operate under different gratuity arrangements.

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Legal Deductions

Only qualifying amounts may be deducted in accordance with applicable law and procedures. Do not assume that any employer-requested deduction is valid.

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Alternative Savings Schemes

Approved end-of-service investment or savings arrangements may change how benefits accumulate and are paid for relevant employment periods.

Resignation And Termination

Does Resignation Affect Your UAE Gratuity?

Under the general current federal private-sector gratuity framework, eligible full-time foreign workers do not receive a lower statutory accrual rate simply because they resign instead of being terminated. The main calculation uses qualifying service and final basic salary.

Older online explanations may describe reduced percentages for resignation under historical legislation. Those rules should not be applied automatically to an employment relationship governed by the newer federal framework.

The UAE End of Service Gratuity Calculator – Calculate Your Gratuity displays a resignation option for record-keeping and explanation. It does not introduce an unsupported reduction solely because that option is selected.

Special termination circumstances, legally permissible deductions and disputes require individual review. The calculator cannot decide those matters from a dropdown selection alone.

Before Leaving Your Job

  • Check your employment contract and current basic wage.
  • Confirm the official last day of employment.
  • Review any unpaid absence entries.
  • Check the notice period and settlement process.
  • Request a written breakdown of all final entitlements.
  • Clarify any proposed deduction before accepting it.
  • Keep copies of relevant payslips and service records.

For a more complete overview beyond gratuity, visit the UAE Final Settlement Calculator.

Understanding Final Payments

Gratuity Versus Your Final Employment Settlement

End-of-service gratuity is often only one part of the money due after employment ends. Outstanding wages, applicable leave payments and contractual or statutory entitlements may need to be calculated separately.

What This Calculator Includes

  • Daily basic salary calculation.
  • Qualifying service period.
  • 21-day gratuity component.
  • 30-day gratuity component.
  • Statutory gratuity ceiling model.
  • Entered lawful deductions.

What It Does Not Include

  • Unpaid final-month salary.
  • Unused annual leave compensation.
  • Unpaid overtime or approved expenses.
  • Notice-period compensation.
  • Air tickets or other contractual benefits.
  • Separate savings-scheme balances.
Scope And Limitations

When This UAE Gratuity Calculator May Not Apply

It is important to check which legal and contractual regime applies before using a result in an employment claim or financial commitment.

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DIFC or ADGM Employment

Employees in DIFC and ADGM may be covered by distinct employment legislation or savings arrangements. This federal formula should not be treated as an automatic substitute.

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UAE National Employees

UAE nationals may receive benefits according to the relevant pension and social security rules rather than the standard expatriate gratuity calculation.

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Part-Time Employment

Part-time and job-sharing arrangements may involve proportional calculations based on working hours. Use a tool designed for the applicable work arrangement.

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Alternative Benefit Schemes

Approved savings or investment schemes may replace standard accrual for certain periods. Scheme balances and contributions must be assessed separately.

📑

Government Employment

Government employees may be covered by public-sector human resources legislation with distinct eligibility or calculation requirements.

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Special Disputes or Exclusions

Uncertain service dates, non-monthly wage arrangements, disciplinary cases and settlement disputes can require a detailed employment-law assessment.

Avoid Common Errors

Common Mistakes When Calculating UAE Gratuity

Small input mistakes can create a substantial difference, especially for long-service employees. Review the details before treating an estimate as an expected payout.

Entering Gross Salary Instead of Basic

Use the basic salary for the standard accrual calculation, not total pay including accommodation, transport and other allowances.

Ignoring Unpaid Absence

Unpaid absence that must be excluded affects qualifying service. Verify the relevant days instead of assuming the entire calendar span is eligible.

Using the Wrong Legal Rules

Do not apply outdated resignation reductions or another jurisdiction's employment rules without first confirming which provisions govern your employment.

Applying 30 Days to Every Year

The additional 30-day annual rate applies only to qualifying service beyond the first five years under the general federal formula.

Forgetting the Gratuity Cap

Review the statutory two-year wage ceiling, especially in very long service periods. The applicable wage basis and personal circumstances should be confirmed.

Confusing Gratuity With Final Settlement

A gratuity result does not automatically contain final salary, leave encashment, bonuses or other separately payable employment benefits.

Frequently Asked Questions

UAE End of Service Gratuity Calculator – Calculate Your Gratuity FAQs

Answers to common questions about basic wages, resignation, qualifying service, unpaid leave, the two-year maximum and gratuity payment.

What is the UAE End of Service Gratuity Calculator – Calculate Your Gratuity?

It is an independent online estimator that applies standard UAE federal private-sector gratuity calculations to basic salary and eligible service. It shows the calculation in AED and separates the first five years from additional years.

How much gratuity do I get after one year in the UAE?

An eligible full-time foreign private-sector employee generally receives 21 days of basic wage for one qualifying year. For a basic monthly salary of AED 6,000, that produces AED 4,200 before applicable adjustments.

Is UAE gratuity calculated on basic or gross salary?

The standard accrual formula uses the last basic wage. Housing, transport and similar allowances are generally excluded from this calculation. The statutory two-year wage ceiling is treated separately in this tool.

What is the gratuity formula for five years?

For exactly five qualifying years, the usual formula is monthly basic salary divided by 30, multiplied by 21 and then multiplied by five. The amount remains subject to applicable legal conditions.

How is gratuity calculated after five years?

The first five years use 21 days of basic wage each year. Additional qualifying years use 30 days per year. Add the components and review the statutory maximum.

Do I lose gratuity if I resign?

Resignation alone does not trigger the old reduced-gratuity percentages under the general current federal system. Eligible employees who meet the qualifying service requirements use the standard formula, subject to applicable exceptions.

Can I get gratuity after six months?

Under the general federal gratuity provision for full-time foreign private-sector workers, at least one continuous qualifying year is required. Other final employment entitlements can still be relevant.

Does unpaid leave reduce gratuity?

Applicable unpaid absence is not included in the qualifying service period. Enter excluded unpaid days into the calculator to reduce the counted service duration accordingly.

What is the maximum end-of-service gratuity in the UAE?

Under the general statutory rule, gratuity cannot exceed two years of wage. The final legal ceiling depends on the applicable wage and governing employment framework.

Is gratuity different for termination and resignation?

The general statutory calculation is based on eligible service and basic wage, not an automatic resignation reduction. Particular legal circumstances and permissible deductions can still affect the settlement.

When must an employer pay end-of-service gratuity?

Article 53 of the UAE federal labour law generally requires payment of employment entitlements within 14 days from the termination of the employment contract. Workers should verify the rules applying to their specific employment.

Does this calculator include annual leave encashment?

No. It estimates gratuity rather than a complete final settlement. Outstanding leave, wages and other employment entitlements should be calculated separately.

Can DIFC or ADGM employees use this calculator?

Not as a definitive entitlement calculator. DIFC and ADGM have distinct employment rules or arrangements, so employees should use their governing jurisdiction's requirements.

Is this UAE gratuity calculator official?

No. ExpatCalc provides an independent planning estimate. The official employment records, applicable legislation and relevant government authority determine the employee's actual rights.

Methodology And Official Sources

How the Gratuity Estimator Works

The UAE End of Service Gratuity Calculator – Calculate Your Gratuity calculates elapsed employment days, subtracts applicable unpaid absence and expresses the remaining service as a fraction of a 365-day year.

It then applies the 21-day and 30-day rates to the appropriate service segments using monthly basic wage divided by 30. The gratuity is limited to the assumed statutory maximum, and any confirmed lawful deduction entered by the user is applied afterward.

Date-based calculations use an inclusive last employment date. Because employers can apply specific rules regarding qualifying service, calendar conventions, alternative schemes or contractual arrangements, a small difference from payroll calculations may occur.

No personal data is sent to an external service by this calculator's JavaScript. Calculations are performed in the user's browser without a submission request.

Government Reference Material

UAE Government: Private-Sector End-of-Service Benefits.

Ministry of Human Resources and Emiratisation: MOHRE Official Website.

UAE Legislation: Federal Decree-Law No. 33 of 2021.

Review Article 51 for the general gratuity calculation and Article 53 for payment of employment entitlements. The available official guidance supports the formula presented here, but it does not establish an individual employee's entitlement without reviewing the relevant facts.

Calculate With Greater Clarity

UAE End of Service Gratuity Calculator – Calculate Your Gratuity Today

Use your latest basic wage and verified employment dates to estimate your gratuity in AED. Review the calculation breakdown, check your applicable employment framework and confirm the final amount with your employer or the relevant authority.

Calculate Your Gratuity ↗